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Quarter Snapshot:
Nahar Spinning Mills Ltd has reported its financial results for the quarter ended June 2025, showcasing a steady performance in a challenging textile market. The company recorded a consolidated revenue from operations of ₹8.19 billion and a profit from continuing operations of ₹159.6 million, reflecting its focus on operational efficiency and export-led growth.
Key Highlights from Q1 FY26:
- Revenue from operations stood at ₹8.19 billion
- Profit from continuing operations reached ₹159.6 million
- Operating margin improved marginally due to cost optimization
- Export contribution remained strong, accounting for over 40 percent of total revenue
- Cotton procurement costs stabilized, aiding gross margin recovery
Revenue and Profit Trends:
The company’s top-line performance remained resilient despite global headwinds in the textile sector.
- Revenue grew 6.2 percent year-on-year, supported by higher export volumes
- Profit from continuing operations rose 9.8 percent compared to the same quarter last year
- Gross margin improved to 33.1 percent, up from 30.9 percent in Q1 FY25
Segment Performance:
Nahar Spinning Mills operates across yarn, fabric, and garment divisions, with yarn being the primary revenue driver.
- Yarn segment contributed ₹5.6 billion, driven by demand from Southeast Asia and Europe
- Fabric division posted ₹1.9 billion in revenue, with stable domestic orders
- Garment exports remained flat at ₹690 million, impacted by delayed shipments
Operational Efficiency and Cost Management:
The company’s focus on lean manufacturing and procurement discipline helped offset inflationary pressures.
- Energy costs declined 4.5 percent due to solar power integration at key facilities
- Employee expenses remained flat, aided by automation in spinning units
- Inventory turnover improved to 5.2x, reflecting better demand forecasting
Export and Global Reach:
Exports continue to be a strategic growth lever for Nahar Spinning Mills.
- Export revenue rose 11.3 percent year-on-year, led by orders from Bangladesh, Vietnam, and Germany
- The company benefited from favorable currency movements and trade agreements
- New clients were onboarded in the Middle East and Eastern Europe
Shareholding and Market Sentiment:
The company’s shareholding pattern remained stable during the quarter.
- Promoter holding stood at 67.4 percent as of June 2025
- Institutional investors increased their stake from 0.59 percent to 0.67 percent
- Stock performance remained subdued, with a 3.5 percent decline quarter-to-date
Strategic Outlook:
Nahar Spinning Mills is cautiously optimistic about the remainder of FY26.
- Plans are underway to expand capacity in the yarn segment by 15 percent over the next two quarters
- The company is exploring backward integration in cotton sourcing to reduce volatility
- Management expects demand recovery in the domestic market post-festive season
Conclusion:
Nahar Spinning Mills has delivered a stable Q1 performance, balancing growth with cost discipline. With a strong export pipeline, operational agility, and strategic expansion plans, the company is well-positioned to navigate sectoral challenges and capitalize on emerging opportunities in global textile trade.
Source: Moneycontrol, StockAnalysis, Trendlyne, July 31, 2025.