Shree Karni Fabcom Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 6 Aug 2026 | Textiles & Apparels | Market Cap: ₹293 Cr
Shree Karni Fabcom targets a minimum 25% year-on-year revenue growth. The company targets a 25% CAGR in revenue over the next few years, with a focus on diversifying beyond the luggage segment to maintain none above 30% of total business by FY '27-'28.
From Shree Karni Fabcom Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹352
Market Cap
₹293 Cr
P/E Ratio
19.3
Revenue Rank
Margin Rank
How does Shree Karni Fabcom Ltd rank in Textiles & Apparels?
Compare Shree Karni Fabcom Ltd against every Textiles & Apparels company this quarter on revenue, margins and earnings-call signals.
📊 Revenue & Sales Performance
Rank 2- →Shree Karni Fabcom targets a minimum 25% year-on-year revenue growth.
- →For FY26, earlier targets were INR 220-240 crores; FY27 targets INR 280-300 crores.
- →The company plans to diversify product segments, limiting luggage to no more than 30% of total business by FY27-'28.
- →Growth will be driven by entry into specialized garments, fire-retardant fabrics, umbrella fabrics, and defense segments.
- →They expect to increase business with global retail giants like Walmart and Target to about 20% of total revenue next year.
- →Dyeing unit capacity is planned to be doubled soon, aiding volume growth.
- →Existing capacity utilization is around 80%-85%, with scope to grow further by adding machines.
- →Defense and high-margin specialized products expected to form 20%-25% of revenue in 2-3 years.
📈 Profitability & Margins
Rank 1- →The company targets a 25% CAGR in revenue over the next few years, with a focus on diversifying beyond the luggage segment to maintain none above 30% of total business by FY '27-'28.
- →Gross margins are targeted to exceed 30% for specialized businesses like defense, with PAT margins expected around 12-13% sustainably.
- →EBITDA margins are expected to improve, particularly from the dyeing unit stabilization and entry into higher margin, high entry-barrier segments which may form 20-25% of revenue in 2-3 years.
- →The company plans to double dyeing capacity soon, with limited capex needed due to existing land and infrastructure.
- →Growth with large global brands like Walmart and Target is expected to contribute about 20% of business next year, aiding revenue and profit expansion.
- →Solar power investments and government subsidies will aid cost savings and margin improvements.
🏗️ Capital Expenditure Plans
Yes- →Doubling capacity of the dyeing house is planned; infrastructure is already ready, only machines need to be installed.
- →Capex for dyeing capacity expansion involves ordering machines; timeline for completion is around 3-4 months.
- →No major new capex planned for weaving or knitting capacity as existing capacity plus contract manufacturing covers up to INR300 crores revenue.
- →Future capacity increase will focus on high-end machines for specialized segments like defense.
- →There is sufficient land adjacent to the dyeing factory for future expansion.
- →Solar power capacity currently at ~2 MW with plans to increase, including solar for dyeing unit, aiding cost saving and certifications.
- →Capital subsidies and interest subsidies have been received for recent investments.
- →No significant additional depreciation or interest cost increase expected beyond current levels from planned expansions.
💰 Fundraising & Capital Structure
Yes- →There is no indication of an increase in debt; the management clarifies that the debt has remained the same and even reduced between March and September 2025.
- →Pending convertible warrants (around INR 18 crores) are expected to convert into equity within one year, increasing promoter's equity stake by about 4-5%.
- →The company is actively paying down term loans, approximately INR 30-50 lakhs per month.
- →No new debt is planned; the company aims to reduce overall debt post receipt of remaining payments.
- →Capex planned mainly for capacity doubling, with infrastructure already in place; no mention of fundraising linked to capex.
- →Overall, no fresh fundraising through debt or equity is explicitly stated at present.
📋 Order Book & Pipeline
No information- →The company operates with a 3 to 6 months advance order prediction from longstanding clients.
- →They have built strong relationships over 10 to 20 years, facilitating accurate order forecasting.
- →Ready stock of raw fabrics is maintained to meet orders promptly.
- →They expect a minimum year-on-year growth of 25% in revenues.
- →The business is seasonal, with H2 typically busier due to school and travel seasons.
- →Entry into high-value segments like specialized garments and defense is expected within 2-3 years.
- →They have secured vendor approval from Walmart and Target, aiming for these brands to contribute around 20% of business next year.
- →No specific figure for total pending orders or order book size is disclosed.
Key Metrics
Revenue
Margin
Capex
Fundraise
Order Book
Frequently Asked Questions
What were Shree Karni Fabcom Ltd Q2 FY26 results?
Shree Karni Fabcom targets a minimum 25% year-on-year revenue growth. The company targets a 25% CAGR in revenue over the next few years, with a focus on diversifying beyond the luggage segment to maintain none above 30% of total business by FY '27-'28.
What is Shree Karni Fabcom Ltd share price analysis?
Shree Karni Fabcom Ltd currently shows a moderate growth signal based on ranking data. The stock trades at a P/E of 19.3 with a market cap of ₹293 Cr. Investors should review the full earnings analysis for detailed insights.
Is Shree Karni Fabcom Ltd planning capital expenditure?
Doubling capacity of the dyeing house is planned; infrastructure is already ready, only machines need to be installed.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.