1. At a Glance – Blink and You’ll Miss the Margin
Tuni Textile Mills Ltd is one of those stocks that looks hyperactive on the topline but sleepy everywhere else. Market cap of ₹71.4 crore, current price ₹1.29, up ~39% in the last 3 months, and suddenly the quarterly sales chart has gone vertical like a meme stock—₹44.7 crore revenue in Q3 FY26, a whopping 122% YoY growth. Sounds spicy? Hold that thought.
Operating margins are still chilling at ~2.5–4%, ROCE at 9%, ROE at a modest 4.17%, and debt-to-equity is doing bhangra at 1.84x. The company made ₹0.32 crore PAT this quarter, which is great growth-wise (129% YoY), but in absolute terms… that’s pocket change.
This is a classic low-margin, high-working-capital textile story with a recent growth burst. The stock trades at 57x earnings and 4.85x book value—yes, you read that right—for a business that earns single-digit returns on capital.
So the big question:
Is this a genuine turnaround… or just one good quarter in polyester fancy dress?
2. Introduction – From Grey Fabric to Grey Hair for Investors
Tuni Textile Mills Ltd was incorporated in 1987, which means this company has survived liberalisation, quota raj hangovers, China dumping cycles, COVID, and still somehow exists at ₹1.29 a share. Respect.
The company operates in synthetic grey and finished fabric manufacturing, supplying shirting and uniform fabrics to brands like Siyaram’s, Mafatlal, and Donear. It also does trading and job work—basically whatever keeps the looms running and the banker calm.
For years, Tuni was a low-growth, low-profit, high-working-capital business. Then suddenly, FY25–FY26 decided to flip the script. Sales jumped from ₹76 crore in FY25 to ₹114 crore TTM, and quarterly numbers in
Q3 FY26 exploded.
But here’s the catch:
Textile investors have PTSD. Every cycle starts with volume growth, followed by margin compression, followed by “raw material volatility” excuses.
So before celebrating, let’s break this thing thread by thread.
3. Business Model – WTF Do They Even Do?
Imagine a factory full of European looms running day and night, churning out polyester, cotton, PC, PV, chambrays, fil-a-fil, suiting, shirting, and uniform fabrics. That’s Tuni.
The company operates across:
- Grey fabric manufacturing
- Finished fabrics
- Trading of fabric
- Job work for clients
It claims to manage the entire supply chain—from raw yarn to finished fabric, including design and development. Sounds fancy, but economically this is still a commodity textile business with limited pricing power.
Capacity-wise, Tuni produces ~7.2 million meters per annum, supplying to wholesalers, exporters, uniform suppliers, and MNC-linked buyers.
Revenue mix (FY22):
- Grey fabrics: 83%
- Finished fabrics: 15%
- Job work: 2%
Question for you:
If 83% is still grey fabric, where exactly is the margin expansion supposed to come from?
4. Financials Overview – Numbers Don’t Lie, They Just Snitch
Quarterly Comparison (Q3 FY26 – Figures in ₹ Crores)
| Metric | Latest Quarter (Dec 2025) | Same Qtr Last Year | Previous Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 44.67 | 20.09 | 29.85 | 122.3% | 49.6% |
| EBITDA | 1.12 | 0.66 | 1.40 | 69.7% | -20.0% |
| PAT | 0.32 | 0.14 | 0.57 | 128.6% | -43.9% |
| EPS (₹) | 0.01 | 0.00 | 0.01 | NA | Flat |
