Nitin Spinners Limited has informed the Exchange about Transcript
NITINSPIN · price
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Nitin Spinners reported Q1 FY'26 revenue of INR 793 crores, down 1% year-on-year, with EBITDA of INR 111 crores (down 6%) and EBITDA margin of 14.02% (down 77 bps). Profit after tax stood at INR 41 crores, a 3% decline YoY, translating to EPS of INR 7.29. Exports contributed 62% of revenue while domestic accounted for 38%, with spinning utilisation above 96% and weaving/finishing above 90%. Management reaffirmed confidence in maintaining current revenue and 14-15% EBITDA margins through FY'26 despite US tariff headwinds, given limited direct US exposure. The company is progressing with its INR 1,120 crore capex plan that targets incremental revenue of INR 1,000 crores (60% fabric, 40% yarn) with 14-15% IRR, expected to start contributing from H2 FY'27. Yarn spread stood around INR 100/kg and management indicated this is near the bottom, with limited downside risk.
Short-term, the stock may see limited excitement as revenue and margins remain flat with no major capacity addition in FY'26. However, the capex-led push into higher-margin fabrics (60% of new revenue) and renewable power (30% cost reduction on 20 MW) supports medium-term margin expansion, while the 14-15% margin guidance and INR 1,000 crore revenue pipeline by FY'27 provide a positive structural outlook for investors with a longer horizon.