BSE: 521036
SOURCE INDUSTRIES (INDIA) LTD.
Classified under textiles & apparels (Other Textile Products), this BSE-listed entity (scrip code 521036) is in the middle of a strategic transformation. Shareholders approved expanding its objects clause to include railway infrastructure, metro rail, defence technology, drones, AI, and cybersecurity, and also approved a name change to "Arka Defence & Locomotives Limited" at an EGM on March 30, 2026. FY26 revenue from operations was Rs 54.27 lakhs, up from Rs 6.57 lakhs in FY25, but still very small in absolute terms. The company swung to a net profit of Rs 12.18 lakhs in FY26 from a Rs 14.55 lakhs loss the prior year, although other equity remains deeply negative at Rs -698.09 lakhs and trade receivables of Rs 208.97 lakhs are large relative to top line. Promoters — Sudhir Reddy Posireddy, N Mohan Krishna, Ram Reddy Swathi and Arka Defence Private Limited — together hold 63.21% of the equity after acquiring an additional 13.03% via an off-market transaction on July 25, 2025. The filings do not describe current products, customers, plant capacity, or operating scale of any specific business line, and the cost shape shows employee costs at 36.1% of revenue and other operating expenses at 47.7%, with materials, depreciation and capex each at 0% of revenue. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Textiles & apparels (legacy classification), Defence, locomotives, railway infrastructure (planned). Micro-cap shell-like entity undergoing strategic pivot from textiles to defence and railway infrastructure
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · standalone | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 0 | 0 | 0 | 0 | 1 |
| EBITDA (ex other income) | (0) | (0) | (0) | 0 | 0 |
| margin % | (416.6) | (145.2) | (221.5) | 5.8 | 16.2 |
| Owners' profit | (0) | (0) | (0) | 0 | 0 |
| EPS, as reported (₹) | (0.17) | (0.07) | (0.13) | 0.01 | 0.11 |
| ROE % · ROCE % | (4.2) · (4.0) | (1.7) · (1.6) | (3.4) · (3.2) | 0.2 · 0.2 | 2.8 · 2.6 |
| Debt / equity (x) | 0.06 | 0.05 | 0.05 | 0.05 | 0.05 |
| Cash from operations | (0) | 0 | (0) | (0) | (0) |
| Capex | 0 | 0 | 0 | 0 | 0 |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1 |
| Profit before tax | (0) | (0) | 0 | 0 | 0 | 0 | 0 | 0 |
| Net profit | (0) | (0) | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (₹) | (0.02) | (0.02) | 0.06 | 0.00 | 0.03 | 0.02 | 0.05 | 0.05 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| KPR MILL LTD. | 37,325 | 40.9 | 6.55 | 27.0 | 15.2 | 19.3 | 13.5 | 21.2 |
| WELSPUN LIVING LIMITED | 20,367 | 74.1 | 4.09 | 26.1 | 4.3 | 4.0 | 5.1 | 12.7 |
| VARDHMAN TEXTILES LIMITED | 14,669 | 17.0 | 1.39 | 11.3 | 7.1 | 7.4 | 10.0 | 20.4 |
| TRIDENT LIMITED | 10,870 | 27.4 | 2.28 | 13.4 | 7.9 | 8.6 | 8.1 | 17.7 |
| INDO COUNT INDUSTRIES LTD | 8,471 | 56.1 | 3.60 | 20.4 | 5.4 | 5.4 | 10.5 | 13.3 |
| GARWARE TECH FIBRES LTD | 7,310 | 35.3 | 5.40 | 22.9 | 14.7 | 18.7 | 8.1 | 20.5 |
| FILATEX INDIA LTD | 4,207 | 22.0 | 2.80 | 11.5 | 12.2 | 13.8 | — | 7.6 |
| SANATHAN TEXTILES LIMITED | 4,178 | 68.8 | 2.23 | 18.6 | 4.1 | 3.5 | — | 8.4 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 600.0 | 16.8 | 176 of 179 | 2% |
| P/B | 25.0 | 1.1 | 182 of 185 | 2% |
| ROCE | 2.6 | 4.3 | 124 of 215 | 43% |
| ROE | 2.8 | 4.7 | 112 of 188 | 41% |
| Debt / Equity | 0.1 | 0.4 | 40 of 188 | 79% |
| EBITDA margin | 12.2 | 9.8 | 77 of 198 | 61% |
| Revenue growth | 2216.6 | 6.9 | 6 of 192 | 97% |
| Profit growth | 5490.9 | 20.0 | 4 of 203 | 99% |
| Market cap | 111 | 61 | 85 of 223 | 62% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 14 Oct 2026 · RTA certificate for share dematerialisation filed with BSE | compliance | minimal | — | — |
| 30 Sept 2026 · 42nd AGM results: all 3 resolutions passed by shareholders | board shareholder meetings | low | — | — |
| 30 Sept 2026 · 42nd AGM concluded; all 3 resolutions passed with near-unanimous majority | board shareholder meetings | low | — | — |
| 26 Sept 2026 · Trading window closed from Oct 1 ahead of Q2 results | compliance | minimal | — | — |
| 7 Sept 2026 · Arka Defence (ex Source Industries) files FY26 annual report; revenue up sharply | results | medium | — | — |
| 7 Sept 2026 · 42nd AGM notice and FY26 annual report; auditor change proposed | board shareholder meetings | medium | — | — |
| 5 Sept 2026 · New auditor Suresh Surana appointed to fill casual vacancy | management changes | medium | — | — |
| 5 Sept 2026 · Board meeting outcome - AGM date set and new auditor appointed | board shareholder meetings | low | — | — |
| 13 Aug 2026 · Q1 results show sharp revenue jump, registered office shifts to Gachibowli | results | high | — | — |
| 13 Aug 2026 · Board approves Q1 FY27 results, shifts registered office | results | high | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.