1. At a Glance – The Textile Company That Woke Up and Found a Highway
Market Cap: ₹367 Cr
Current Price: ₹111
3-Month Return: -6.22%
1-Year Return: 190%
Stock P/E: 496
ROCE: -1.74%
ROE: -1.10%
Debt: ₹0.30 Cr
Promoter Holding: 80.6%
Ladies and gentlemen, presenting Soma Textiles & Industries Ltd, a company that spent a decade doing financial yoga — bending, stretching, almost breaking — and then suddenly reporting ₹28.01 Cr sales in Q3 FY26 after practically being on life support.
Quarterly sales are up 4,647% YoY. Yes, you read that right. Four thousand six hundred forty-seven percent. Even Bollywood scripts are less dramatic.
But hold your denim jackets — operating margins are barely positive at 1.04%, ROCE is negative, and the P/E of 496 looks like someone accidentally typed an extra digit.
Add to this: promoters sold 74.98% stake, new management entered, and the company is now talking highways instead of fabrics.
Is this a turnaround? A pivot? Or a plot twist?
Let’s investigate.
2. Introduction – From Denim Dreams to Highway Schemes
Incorporated in 1969, Soma Textiles started life as a classic textile manufacturer — denim fabrics, stretch fabrics, garments, the whole fashion runway.
Its clientele included names like Cherokee, Colt, Mossimo, John Players, Indigo Nation, Scullers, Reliance Trends and Anotah.
Sounds solid, right?
But then came the long winter.
Sales declined steadily over the last decade. Five-year sales growth is -18%. Operating margins went deeply negative. Borrowings once stood at ₹184 Cr (Mar 2010). Losses piled up.
Then suddenly — boom.
Other income in FY23 shot to ₹180.84 Cr. Net profit became ₹165.46 Cr. Reserves turned positive. Debt evaporated.
And in October 2025 — promoters sold 74.98% stake to Roadway Solutions India Infra Limited for ₹87.67 Cr.
New MD: Ameet Gadhoke.
New Chair: Teja Gadhoke.
Business shift: Highway construction.
Wait.
A textile company becoming a highway infra play?
Is this diversification or reincarnation?
Let’s decode.
3. Business Model – WTF Do They Even Do?
Originally, Soma Textiles did:
- Garments
- Piece Dyed Fabrics
- Stretch & Non-Stretch Fabrics
- Vintage Denim
- Denim Fabrics
Revenue breakup (FY21):
- Cloth: 98%
- Waste & Scrap: 2%
Pretty straightforward textile business.
But then came land development (2012 agreement for Rakhial land commercial development).
Then came regulatory drama (SEBI barred earlier promoter directors for GDR violations in 2006 issue).
Then came temporary production
