Any current/future capex/capital investment/strategic investment?

Nitin Spinners Limited is undertaking a major capacity expansion of about INR 1,100 crores. Incremental revenue from this expansion is expected to be about INR 1,000 crores. The expansion primarily focuses on fabric capacity, which will comprise about 60% of the incremental revenue, with 40% from yarn. The expansion aims to increase the fabric portion of total sales from about 22-23% to around 35-40%. Capex benefits are expected to start materializing from the second half of FY '27, with at least one quarter of benefits likely in FY '27. There will also be modernization work (~INR 50 crores) i

Any current/future new fundraising through debt or equity?

No specific mention of any new fundraising through debt or equity in the provided transcript. Current focus is on an ongoing INR 1,100+ crore capex primarily funded through existing mechanisms. Company is receiving state subsidies including interest subvention (~3% on outstanding loans) and capital subsidy (INR 21.6 crores over 10 years), but no mention of fresh equity or debt issuance. Working capital is adequately funded with no major impact expected. No discussions or plans for inorganic growth involving fundraising as of now; open to opportunities if fitting growth strategy. The management

Future growth expectations in sales/revenue/volumes?

Revenue growth is expected to be steady with capacity fully utilized and limited volume growth in FY '26. Incremental revenue of about INR 1,000 crores is expected from capacity expansion, mostly kicking in FY '27. Around 60% of incremental revenue will be from fabric, which has better margins than yarn. Moderate volume growth expected via debottlenecking and modernization, but no major capacity increases in FY '26. Domestic demand is reasonably strong with expected pickup post-monsoon and festive season. Export geographies may change, redirecting some exports from the U.S. to other markets li

Future growth expectations in earnings/operating earnings/profits/EPS?

FY '26 and first half of FY '27 expected to be steady with no major growth due to full capacity utilization and prevailing market uncertainties (Page 16). EBITDA margins targeted at mid-teens (~14-15%) from FY '27 onwards, aided by renewable energy initiatives and labor cost reductions (Page 16). Capacity expansion focused on fabric segment, which typically has 8-10% higher margins over yarn, aiming for better margin profile post-FY '27 (Pages 13-14). Incremental revenue from INR1,100 crore capex expected around INR1,000 crore with ~60% from fabric business (Page 12). Capex benefits to start r

Current/ Expected Orderbook/ Pending Orders?

The company did not specify exact figures on the current or expected order book. Due to recent tariff impositions and global uncertainties, there is caution in new order placements. Existing running orders continue, but new orders are coming with tariff-related pricing adjustments. It is expected that tariff impacts and related uncertainties will prevail for the next 3-4 months, potentially settling by the end of the calendar year. Demand is expected to remain steady with buyers maintaining low inventories and relying on just-in-time procurement. The company is actively engaging with governmen

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Nitin Spinners LtdQ2 FY25Textiles & Apparels

Nitin Spinners Ltd Q2 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹550P/E: 15.2Market Cap: ₹2.7K CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

N/A

Order

N/A

Capex

Yes

1 of 3 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

→Revenue growth is expected to be steady with capacity fully utilized and limited volume growth in FY '26.
→Incremental revenue of about INR 1,000 crores is expected from capacity expansion, mostly kicking in FY '27.
→Around 60% of incremental revenue will be from fabric, which has better margins than yarn.
→Moderate volume growth expected via debottlenecking and modernization, but no major capacity increases in FY '26.
→Domestic demand is reasonably strong with expected pickup post-monsoon and festive season.
→Export geographies may change, redirecting some exports from the U.S. to other markets like Bangladesh and Vietnam.
→Margins to remain steady near mid-teens EBITDA from FY '27 due to renewable energy and labor cost reduction benefits.
→Inorganic growth opportunities are considered but currently no acquisitions or deals on the table.

Margin guidance

Category 3

→FY '26 and first half of FY '27 expected to be steady with no major growth due to full capacity utilization and prevailing market uncertainties (Page 16).
→EBITDA margins targeted at mid-teens (~14-15%) from FY '27 onwards, aided by renewable energy initiatives and labor cost reductions (Page 16).
→Capacity expansion focused on fabric segment, which typically has 8-10% higher margins over yarn, aiming for better margin profile post-FY '27 (Pages 13-14).
→Incremental revenue from INR1,100 crore capex expected around INR1,000 crore with ~60% from fabric business (Page 12).
→Capex benefits to start reflecting from the second half of FY '27, with full impact likely beyond FY '27 (Pages 12-14).
→The company targets IRR of 14-15% on the capex (Page 8).
→Long-term margin improvement expected through value addition, cost savings, and better product mix (Pages 13-14).
→Earnings growth will depend on cotton prices, global uncertainties, and market demand dynamics.

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Fundraise plans

→No specific mention of any new fundraising through debt or equity in the provided transcript.
→Current focus is on an ongoing INR 1,100+ crore capex primarily funded through existing mechanisms.
→Company is receiving state subsidies including interest subvention (~3% on outstanding loans) and capital subsidy (INR 21.6 crores over 10 years), but no mention of fresh equity or debt issuance.
→Working capital is adequately funded with no major impact expected.
→No discussions or plans for inorganic growth involving fundraising as of now; open to opportunities if fitting growth strategy.
→The management did not indicate any plans for raising additional capital through debt or equity in the near term.

Order book

→The company did not specify exact figures on the current or expected order book.
→Due to recent tariff impositions and global uncertainties, there is caution in new order placements.
→Existing running orders continue, but new orders are coming with tariff-related pricing adjustments.
→It is expected that tariff impacts and related uncertainties will prevail for the next 3-4 months, potentially settling by the end of the calendar year.
→Demand is expected to remain steady with buyers maintaining low inventories and relying on just-in-time procurement.
→The company is actively engaging with government bodies and industry associations regarding tariff impacts.
→Overall, business is stable and capacity fully utilized, but growth is not anticipated in the near term until tariff clarity improves.

Capex plans

Yes

→Nitin Spinners Limited is undertaking a major capacity expansion of about INR 1,100 crores.
→Incremental revenue from this expansion is expected to be about INR 1,000 crores.
→The expansion primarily focuses on fabric capacity, which will comprise about 60% of the incremental revenue, with 40% from yarn.
→The expansion aims to increase the fabric portion of total sales from about 22-23% to around 35-40%.
→Capex benefits are expected to start materializing from the second half of FY '27, with at least one quarter of benefits likely in FY '27.
→There will also be modernization work (~INR 50 crores) in FY '26.
→The expected IRR/payback on the INR 1,120 crores capex is in the range of 14-15%.
→They are adding 20 megawatts power capacity to reduce energy costs, expected to begin impacting margins from the third quarter onwards.
→No current plan to slow down capex despite demand uncertainties.

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