01 — At a Glance
The Spindle King That Exports to Zara But Worries About Trump
- 52-Week High / Low₹427 / ₹295
- Q3 FY26 Revenue₹801 Cr
- Q3 FY26 PAT₹44.4 Cr
- TTM EPS₹29.63
- Annualised EPS (Q3 Avg × 4)₹31.60
- Book Value / Share₹244
- Price to Book1.60x
- Exports (% of revenue)61%
- ROCE13.2%
- Yarn Spread₹99/kg
Flash Summary: Nitin Spinners is the only publicly listed cotton yarn pure-play in India making Zara and H&M’s clothes. Q3 delivery was respectable: PAT of ₹44 crore, up 27.7% QoQ but flat -0.8% YoY. Exports are 61% of sales. They’re expanding by 20% in spinning and 88% in weaving. They’re throwing ₹230 crore at solar capacity to cut power costs. And they’re trading at 12.8x P/E — a 41% discount to the textile industry average. The question is: will the tariff cycle let them live long enough to finish the capex?
02 — Introduction
Bhilwara Meets H&M. What Could Go Wrong?
Let’s cut to the chase. Nitin Spinners is a 33-year-old company from Bhilwara, Rajasthan — a place where textile mills are older than Salman Khan’s acting career and twice as controversial. But here’s what makes them different: they actually export to global brands. Zara, H&M, United Colors of Benetton, Marco Polo — these aren’t names they saw on Instagram. These are their customers. In Q3 FY26, 61% of sales came from exports.
The company operates 434,832 spindles, 77 knitting machines, 222 air-jet looms, and 264 rotor positions spread across two plants in Bhilwara and Chittorgarh. They make yarn, knitted fabrics, and woven fabrics. In short: they take raw cotton, turn it into yarn at ₹250/kg, sell it at ₹250/kg (after a ₹99/kg spread that’s “reasonable” according to management), and export 61% of it. Rinse, repeat, pay dividends, and hope the government doesn’t mess with tariffs.
Q3 FY26 was a tale of two cities: revenue was flat YoY at ₹801 crore (down 4.5%), but PAT jumped 27.7% QoQ to ₹44.4 crore. Management blamed the YoY decline on “weaker demand and reduced selling prices” — corporate speak for “the world didn’t want our yarn as much as we hoped.” But QoQ? That was “stable demand and higher sales volumes.” Translation: January was better than September. Always a good sign when Q3 recovers after a weak Q2.
CARE Rating (July 2025): CARE A; Positive (upgraded from Stable). Credit rating agency says the company is solid, capex is manageable, and the merger story is one of structured expansion, not desperation. They expect revenue and profitability to remain “largely stable” in FY26 due to optimal utilisation, with incremental revenue of ₹350-400 crore expected from the new capacity in FY27.
03 — Business Model: WTF Do They Even Do?
They Spin Cotton Into Gold. And Then Pray the Price Doesn’t Drop 40%.
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