Any current/future new fundraising through debt or equity?

The company plans significant capex of around INR 1,100 crores mainly for capacity expansion in fabric and spinning segments. They intend to fund this capex partly through debt while maintaining a prudent debt-to-equity ratio below 1:1. The current average cost of borrowing is about 5.7% net of incentives. Long-term debt-to-equity ratio stands at 0.53 as of September 2025, suggesting no immediate pressure from debt. There is no explicit mention of raising funds through equity in the call transcript. Management is focused on utilizing cheaper cost debt for growth without increasing financial bu

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

Nitin Spinners is undertaking a major capex of about INR 1,100 crores focused on: - Doubling fabric division capacity (more than 50% increase). - Increasing spinning segment capacity by around 25%. The new fabric capacity will add about INR 1,000 crores in annual revenue when fully utilized (expected by FY '28). Partial production from new capacity expected starting September of next financial year, with around INR 400 crores revenue expected in FY '27. The capex aims to move up the value chain for margin improvement, adding low weight products, industrial fabrics, technical products, and

Future growth expectations in sales/revenue/volumes?

Capacity expansion underway: spinning capacity to increase by ~25%, fabric division capacity to more than double, driving future growth. Incremental revenue from fabric expansion expected ~INR 1,000 crores annually once fully utilized (FY '28 onwards). FY '27 revenue expected to increase by ~INR 400 crores from partial capacity ramp-up. Current fabric revenues around INR 650-700 crores on 34-35 million meter capacity; post-expansion potential INR 1,300-1,400 crores annually. Yarn volume stable; slight decline due to order deferrals expected to be recovered in current quarters. Diversification

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

The company plans to increase revenues through a capex of about INR 1,100 crores, expanding spinning capacity by ~25% and fabric capacity by over 50%, partially benefitting FY '27 and fully FY '28 onwards. Incremental revenue from expansion expected around INR 400 crores for FY '27, with full revenue potential of INR 1,300-1,400 crores from fabric capacity by FY '28. The company targets IRR around 12-15% on new capex, similar to existing margins despite margin compressions currently. EBITDA margins compressed to about 13.1% in Q2 FY '26 from 14% earlier; further margin normalization is e

Current/ Expected Orderbook/ Pending Orders?

There is no explicit mention of a current or expected order book or pending orders in the transcript. However, it is noted that some customers deferred deliveries due to prevailing uncertainty and tariff issues. The company expects these deferred orders to be fructified in the ongoing/current quarter. Demand recovery is anticipated in the second half of the financial year, supported by government duty relaxations and potential trade deals. The company remains focused on customer retention through sustained engagement and product mix optimization. Growth plans include capacity expansion in yarn

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Nitin Spinners LtdQ3 FY25Textiles & Apparels

Nitin Spinners Ltd Q3 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 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Capacity expansion underway: spinning capacity to increase by ~25%, fabric division capacity to more than double, driving future growth.
→Incremental revenue from fabric expansion expected ~INR 1,000 crores annually once fully utilized (FY '28 onwards).
→FY '27 revenue expected to increase by ~INR 400 crores from partial capacity ramp-up.
→Current fabric revenues around INR 650-700 crores on 34-35 million meter capacity; post-expansion potential INR 1,300-1,400 crores annually.
→Yarn volume stable; slight decline due to order deferrals expected to be recovered in current quarters.
→Diversification into new geographies like UK, EU, Bangladesh, Turkey, and African markets planned to mitigate US tariff impact.
→Growth driven by value-added yarns, blended yarns, and expanded fabric product basket targeting new segments (ladies, kids, uniforms, technical fabrics).
→Expect volumes and revenues to at least reach prior year levels, with improvements post-normalization of market conditions.

Margin guidance

Category 3

→The company plans to increase revenues through a capex of about INR 1,100 crores, expanding spinning capacity by ~25% and fabric capacity by over 50%, partially benefitting FY '27 and fully FY '28 onwards.
→Incremental revenue from expansion expected around INR 400 crores for FY '27, with full revenue potential of INR 1,300-1,400 crores from fabric capacity by FY '28.
→The company targets IRR around 12-15% on new capex, similar to existing margins despite margin compressions currently.
→EBITDA margins compressed to about 13.1% in Q2 FY '26 from 14% earlier; further margin normalization is expected in the next 2 quarters with tariff normalization and lower raw material costs.
→Net profit and EPS saw some decline in H1 FY '26 but management expects revenues to at least reach last year levels while cost efficiencies and expansion aid growth.
→Working capital expected to increase by INR 200-250 crores to support higher revenues.
→Management avoids explicit margin guidance but growth driven by capacity expansion and market diversification.

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Fundraise plans

Yes

→The company plans significant capex of around INR 1,100 crores mainly for capacity expansion in fabric and spinning segments.
→They intend to fund this capex partly through debt while maintaining a prudent debt-to-equity ratio below 1:1.
→The current average cost of borrowing is about 5.7% net of incentives.
→Long-term debt-to-equity ratio stands at 0.53 as of September 2025, suggesting no immediate pressure from debt.
→There is no explicit mention of raising funds through equity in the call transcript.
→Management is focused on utilizing cheaper cost debt for growth without increasing financial burden.
→No announcements or plans for fresh equity fundraising were indicated during the call.

Order book

→There is no explicit mention of a current or expected order book or pending orders in the transcript.
→However, it is noted that some customers deferred deliveries due to prevailing uncertainty and tariff issues.
→The company expects these deferred orders to be fructified in the ongoing/current quarter.
→Demand recovery is anticipated in the second half of the financial year, supported by government duty relaxations and potential trade deals.
→The company remains focused on customer retention through sustained engagement and product mix optimization.
→Growth plans include capacity expansion in yarn and fabric segments, which should help increase sales volumes.
→Overall, the company anticipates improvement in revenue and margin normalization going forward.

Capex plans

Yes

→Nitin Spinners is undertaking a major capex of about INR 1,100 crores focused on:
→ - Doubling fabric division capacity (more than 50% increase).
→ - Increasing spinning segment capacity by around 25%.
→The new fabric capacity will add about INR 1,000 crores in annual revenue when fully utilized (expected by FY '28).
→Partial production from new capacity expected starting September of next financial year, with around INR 400 crores revenue expected in FY '27.
→The capex aims to move up the value chain for margin improvement, adding low weight products, industrial fabrics, technical products, and expanding product range for existing customers.
→Maintenance capex is minimal and mostly charged to revenue, with modernization costs of INR 45-50 crores planned over 1.5 to 2 years for existing plants.
→Investments in renewable energy (18 MW) worth INR 17.9 crores to reduce power costs by ~5%.

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