If polyester fabric had a Bollywood biopic, Sunrakshakk Industries Ltd (formerly A.K. Spintex) would be its dramatic protagonist — humble Bhilwara beginnings, a few wardrobe malfunctions, and a roaring comeback with a ₹98 crore glow-up through preferential issue! The company’s Q2 FY26 results are no less than a runway moment for investors: Revenue ₹120.97 crore, PAT ₹6.95 crore, and YoY profit growth of 272%. From a small job-work processor to a ₹656 crore market cap textile transformer, Sunrakshakk is stretching its fabric far beyond the dye house — literally into agro products, cosmetics, and even pet care. Yes, this polyester panchayat now wants to make soaps, snacks, and shampoos!
With a P/E of 29.7, ROE at 24.2%, and ROCE of 21.9%, the numbers scream efficiency. The only thing missing? Dividends — the company loves reinvestment more than investor cashbacks. But who needs a payout when your 5-year stock return is up 114%? So buckle up — this Q2 FY26 fabric fiesta deserves a full forensic fashion audit.
2. Introduction
Bhilwara — the land where fabric looms hum louder than traffic. Here, Sunrakshakk Industries (formerly A.K. Spintex) turned its dyeing vats into money-making machines. For years, it quietly stitched profits from job-work processing. But FY25 and FY26? The company hit the growth pedal harder than a tailor rushing Diwali orders.
They not only rebranded to “Sunrakshakk” (which, let’s be honest, sounds like a superhero who protects clothes from dullness) but also expanded its business DNA into everything from agro to cosmetics. Because why stop at fabrics when you can sell soap and snacks too?
After the ₹98.25 crore preferential allotment and acquisition of Sunrakshak Agro Products Pvt Ltd, management clearly decided that diversification is the new dyeing. A textile company talking about glycerin and edible oil — that’s not a pivot; that’s a personality change.
But jokes aside, Q2 FY26 numbers show the transformation is paying off. From ₹30 crore quarterly sales in early FY24 to ₹121 crore in Q2 FY26, this company’s “color fastness” now extends to its financials.
3. Business Model – WTF Do They Even Do?
Sunrakshakk started as a job-work processor for polyester and cotton grey fabrics, meaning it dyes, prints, and finishes the fabrics that others sell under their brand names. Basically, it’s the backroom hero that makes Raymonds and other brands look fancy on hangers.
Manufacturing Facility: Located in Bhilwara, Rajasthan — India’s fabric hub — with a total plant capacity of ~36 lakh meters annually. Think of it as a place where dull grey fabric goes in and glamorous patterns come out, like an industrial beauty parlor for cloth.
Services include:
Dyeing & printing synthetic and cotton fabric
Finishing & value addition for major fabric brands
Contract manufacturing (job work basis)
Now, the twist — post the 2025 name change, Sunrakshakk added new objects to its charter. That includes personal care, healthcare, home care, plant care, and pet care products. If it can be made, washed, or pampered — Sunrakshakk wants in.
They even approved plans to make food products and chemicals, from spices to surfactants. So yes, they could someday sell “Soya Paneer Snacks” next to “Sunrakshakk Detergent Bars.” This company might soon need two balance sheets: one for fabrics, one for flavors.
4. Financials Overview
Here’s where the polyester turns into profit.
Metric (₹ Cr)
Q2 FY26
Q2 FY25
Q1 FY26
YoY %
QoQ %
Revenue
120.97
26.61
125.24
355%
-3.4%
EBITDA
11.67
5.23
11.62
123%
+0.4%
PAT
6.95
1.87
6.52
272%
+6.6%
EPS (₹)
2.24
0.74
2.10
203%
+6.7%
Witty Commentary: This kind of growth chart looks like someone accidentally spilled fertilizer on the income statement. Revenue up 355%, profits up 272% — and that’s before their agro division even starts contributing fully. QoQ flatness is fine; you can’t grow 300% every quarter unless you’re running a crypto scam.
EPS of ₹2.24 in the quarter means annualized EPS of ₹8.96, giving a P/E of ~23.7x on annualized earnings — more reasonable than the current trailing 29.7x.
5. Valuation Discussion – Fair Value Range Only
Let’s calculate the fair value range like an honest CA with a sense of humour.
Method 1: P/E Valuation
Annualized EPS (Q2 FY26 x4) = ₹8.96
Industry average P/E = 19.4
Range: 18x–25x
Fair Value = ₹161–₹224
Method 2: EV/EBITDA
EV = ₹695 Cr
EBITDA (TTM) = ₹41 Cr
EV/EBITDA = 16.4x
Industry textile fair multiple ~12–16x
Fair Value Range = ₹175–₹235
Method 3: DCF (Simplified) Assume 20% growth next 3 years, 10% thereafter, discount rate 12%. Fair Value Range ≈ ₹180–₹230
🎯 Educational Fair Value Range: ₹175–₹230 per share
Disclaimer: This range is purely for educational discussion. Not investment advice — or as Sunrakshakk would say, “Dye responsibly.”
6. What’s Cooking – News, Triggers, Drama
Oh, plenty. Sunrakshakk’s boardroom this year was busier than an Indore textile bazaar on Diwali.
Acquisition: 100% of Sunrakshak Agro Products Pvt Ltd (Dec 2024).
Name Change: From “A.K. Spintex” to “Sunrakshakk Industries” (Apr 2024).
Preferential Issue: ₹98.25 crore raised by issuing 11.75 lakh shares at ₹840 each (May 2025).
New Ventures: Into cosmetics, personal care, home care, pet care, food processing, and chemicals.
Borrowing Limit: Upped to ₹31 crore in FY24 for expansion.
