1. At a Glance
Winsome Textile Industries Ltd is that classic Indian textile stock which looks cheap enough to make value investors weak in the knees and cyclical enough to give them anxiety attacks at night. Market cap of roughly ₹158 crore, stock trading around ₹80, price-to-book at a jaw-dropping 0.5x, P/E of ~6, and an earnings yield north of 20%. On paper, this is the kind of stock Benjamin Graham would frame and hang on his wall. In reality, the market treats it like that relative who does well occasionally but has a long history of bad decisions.
FY25 sales stand at ₹876 crore with PAT of ~₹26 crore. Latest quarterly sales clocked ~₹208 crore, with Q3 FY26 PAT at ₹5.31 crore. Operating margins hover around 11–12%, respectable for a yarn-and-fabric-heavy textile company in a brutally competitive industry. ROCE of ~14–15% is decent, ROE just under 10% is… acceptable but not party-worthy. Debt sits at ~₹254 crore, interest coverage at 1.8x, which means lenders are comfortable but not relaxed.
Promoters hold ~58%, zero pledge, FIIs have been steadily trimming, and public shareholding is rising. The stock is down ~20% over one year, flat-ish over three years, but up ~20% over five years. Question is: is this a boring compounder in disguise or just another textile value trap wrapped in melange yarn?
Let’s open the bales and inspect the threads.
2. Introduction
Winsome Textile Industries Ltd has been around since 1980. That alone tells you one thing: this company has survived multiple cotton cycles, quota regimes, China dumping, COVID chaos, demonetisation, GST teething troubles, and every possible “textile sector is dead” headline ever written.
WTIL operates in spinning, yarn dyeing, knitted fabric, and even dabbles in hydro power. It makes everything from raw white yarn to fancy-sounding stuff like injection slub melange, sparkle yarn, linen-look mel, and wool-touch mel. If yarn had a fashion show, Winsome would be backstage supplying the outfits.
The company exports nearly half its output, sells to over 50 countries, and counts global brands like H&M, GAP, Walmart, Tesco, and Tommy Hilfiger among its customers. Which sounds impressive… until you remember that global brands squeeze suppliers like toothpaste tubes.
The story of Winsome is not about explosive growth. It’s about survival, optimisation, cost control, and grinding margins out of a commodity-heavy business. Over decades, it has upgraded capacity, moved into value-added yarns, and tried to keep its head above water while many peers drowned.
But textiles
is not FMCG. There’s no pricing power, raw material volatility is savage, and demand is cyclical. So the market keeps asking: why should this trade anywhere near book value, let alone above it?
3. Business Model – WTF Do They Even Do?
At its core, Winsome Textile spins yarn. Lots of it. Cotton yarn, melange yarn, dyed yarn, blended yarn, fancy yarn, and basically every yarn variant that sounds like a café menu item.
The business has four major legs:
- Spinning & Yarn Manufacturing
This is the backbone. Raw cotton and fibres come in, yarn goes out. Value addition happens through blends, colours, textures, and speciality finishes. - Yarn Dyeing & Fancy Yarn
This is where margins improve slightly. Melange, slub, sparkle, neppy yarns — these are higher realisations compared to plain vanilla yarn. - Knitted Fabric
Forward integration into knitted fabrics like jersey, pique, and blended fabrics. Still commodity-ish, but helps customer stickiness. - Hydro Power Generation
A 3.5 MW hydro plant which offsets part of the power cost. Not a growth driver, but in textiles, saving power costs is equivalent to finding hidden treasure.
Installed capacity includes ~1.10 lakh spindles, yarn dyeing of 30 MT/day (now upgraded to ~31.5 MT/day), and knitting capacity of ~8 MT/day.
Revenue mix FY23:
- Yarn: ~84%
- Fabric: ~8%
- Waste & scrap: ~6%
- Export incentives: ~2%
So yes, this is still overwhelmingly a yarn company. Fabric and power are supporting actors, not lead stars.
Here’s the key question: can a yarn-heavy business ever command a premium multiple? Or is Winsome destined to live and die by cotton prices?
4. Financials Overview
| Metric | Latest Quarter | YoY Quarter | Prev Quarter | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 207.67 | 200.70 | 222.00 | ~3.5% | -6.5% |
| EBITDA (₹ Cr) | 21.28 | 24.46 | 27.33 | -13.0% | -22.1% |
| PAT (₹ Cr) | 5.31 | 5.49 | 6.69 | -3.3% | -20.6% |
| EPS (₹) | 2.68 | 2.77 | 3.38 | -3.2% | -20.7% |
