1. Opening Hook
As global textile diplomacy unravels faster than a cheap polyester thread, Nitin Spinners finds itself weaving hope from tariffs and trade tantrums. The U.S. tariff drama squeezed yarn spreads thinner than a monk’s robe, yet management insists the fabric of resilience is “made in Bhilwara.” Somewhere between falling cotton prices and rising capex bills, they promise a brighter warp ahead.
As the Bhagavad Gita reminds us — “You have a right to perform your duty, but not to the fruits of your actions.” Dinesh ji seems to have read that part carefully. Stick around — the thread count gets interesting.
2. At a Glance
- Revenue ₹760 Cr (↓8%) – Blame tariffs, not talent.
- EBITDA ₹99.6 Cr (↓10%) – Margins playing hide and seek.
- EBITDA Margin 13.1% (vs 14%) – A minor cut, but the cloth still holds.
- Net Profit ₹34.8 Cr (↓17%) – Profit shrank faster than cotton in monsoon.
- Export Mix 61% – The global hustle continues.
- Utilization 95%+ – Machines spun harder than politicians in election season.
3. Management’s Key Commentary
“Cotton prices remain elevated compared to global benchmarks.”
(Translation: Indian farmers are smiling; spinners are not.)
“EBITDA margin compressed to 13.1% due to tariff headwinds.”
(Translation: Uncle Sam’s tax tantrum hurt the looms.) 😏
“We don’t anticipate significant impact from U.S. tariffs due to diversified exports.”
(Translation: We don’t sell much to them anyway — small mercies.)
“Expansion of ₹1,100 crore will increase spinning by 25% and fabric capacity by
50%.”
(Translation: Because when times are tough, we buy more machines!)
“Renewable energy investment of 18 MW to reduce power cost by 5%.”
(Translation: Green fabric, greener P&L — eventually.)
“10 million spindles have stopped in India in last two years.”
(Translation: The weak are unraveling, we’re still spinning.) 🧵
“We aim for IRR of 15% from new projects.”
(Translation: Bhagwan bharose, but Excel says it works.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | YoY Change | Commentary |
|---|---|---|---|---|
| Revenue | ₹760 Cr | ₹822 Cr | -8% | Tariff trouble & deferred orders |
| EBITDA | ₹99.6 Cr | ₹110 Cr | -10% | Margin squeeze |
| EBITDA Margin | 13.1% | 14.0% | -90 bps | Cotton prices refused to chill |
| Net Profit | ₹34.8 Cr | ₹42.2 Cr | -17% | Flat growth, thinner spreads |
| Export Mix | 61% | 63% | -2% | Tariff hit muted due to diversification |
| Debt/Equity | 0.53x | 0.6x | Stable | CFO’s balance-sheet yoga |
| Capex | ₹1,100 Cr | — | — | Growth stitched for FY27-28 |
| Power Cost Savings | ₹10-12 Cr | — | — | Green energy cushions the blow |
➡ Analysts noted: “They’re sweating less over power, but more over prices.”
5. Analyst Questions
Q: When will spinning spreads normalize?
A: “3-6 months.” (Or as God wills.)
Q: Smaller spinners shutting down?
A:
