Textile Sector Update
Nandan Denim Ltd, one of India’s largest denim fabric manufacturers, has reported its financial results for the quarter ended June 2025, showcasing steady performance amid a challenging global textile environment. The company posted consolidated revenue from operations of ₹10.48 billion and a net profit of ₹112 million, reflecting resilience in its core business and operational efficiency.
Key Highlights from Q1 FY26 Results
Revenue from operations stood at ₹10.48 billion, driven by stable demand in domestic and export markets.
Net profit for the quarter was ₹112 million, supported by cost control and improved product mix.
Gross margin improved to 18.19 percent, indicating better pricing and production efficiency.
Operating margin stood at 22.2 percent, reflecting strong execution across manufacturing units.
Business Overview and Strategic Focus
Nandan Denim Ltd, headquartered in Ahmedabad, Gujarat, is engaged in the production of denim, shirting fabrics, dyed yarns, and cotton blends. The company serves both domestic brands and international clients, with a focus on innovation, sustainability, and value-added products.
Key business segments include:
Denim fabrics: Core classics, stretch tech, feather touch, and printed denims
Shirting fabrics: Twill, chambray, herringbone, and dobby weaves
Yarn and cotton blends: Used in fashion and industrial applications
The company continues to invest in product development and automation to enhance quality and reduce costs.
Financial Performance Snapshot
Basic earnings per share (EPS): ₹0.31
Book value per share: ₹60.37
Return on equity: 7.99 percent
Return on assets: 3.5 percent
Price-to-earnings (P/E) ratio: 13.82
These metrics reflect a stable financial structure and moderate valuation, making Nandan Denim a potential value pick in the textile sector.
Operational Efficiency and Growth Indicators
Inventory turnover ratio improved, indicating better supply chain management.
Asset turnover ratio of 1.64 suggests efficient use of capital assets.
Revenue per employee and net income per employee showed year-on-year growth, highlighting productivity gains.
The company also reported a 32.16 percent increase in quarterly sales compared to the same period last year, signaling recovery in demand and successful client retention.
Market Sentiment and Stock Performance
Nandan Denim’s stock traded around ₹3.82 on the NSE, with a 52-week range of ₹3.05 to ₹7.35.
Market capitalization stands at approximately ₹5.51 billion.
Analysts note that while the textile sector faces margin pressures, Nandan’s diversified product base and operational discipline provide a cushion against volatility.
Strategic Outlook
Nandan Denim aims to strengthen its position in the premium denim segment while expanding its shirting and cotton fabric offerings. The company is exploring new export markets and enhancing its ESG (Environmental, Social, Governance) credentials to attract global buyers.
Future growth will be supported by:
Capacity expansion in high-margin product lines
Investment in sustainable manufacturing practices
Strategic partnerships with fashion brands and retailers
Conclusion
With ₹10.48 billion in revenue and ₹112 million in net profit for the June quarter, Nandan Denim Ltd has demonstrated its ability to navigate market challenges while maintaining profitability. As demand for quality denim and cotton fabrics rises, the company’s focus on innovation and efficiency positions it well for long-term growth.
Sources: Reuters, Investing.com
