Himatsing. Seide

Himatsingka Seide reported a consolidated total revenue of approximately ₹637.26 crores for Q3 FY26, a decline from ₹722 crores in the same period last year. This 11.74% year-over-year reduction was primarily attributed to the lingering impact of tariffs. Despite the revenue dip, the company recorded approximately ₹25 crores in other income, mainly from foreign exchange movements. Capacity utilization for the spinning plant remained strong at 99%, though sheeting and terry towel divisions saw a 100-200 basis point correction.

The company is actively pursuing a strategy to diversify its product portfolio beyond traditional home textiles. Leveraging its existing infrastructure and capabilities in the cellulosic value chain, Himatsingka plans to introduce new product verticals, including apparel solutions, fabric solutions, and yarn solutions. This move aims to accelerate growth rates, reduce concentration risk, and tap into larger market pools where global trade is more substantial than in home textiles. Management emphasized that while home textiles will remain a major portfolio, dependence solely on it would be limiting.

Himatsingka Seide is strategically reducing its reliance on the U.S. market, targeting its revenue contribution to fall substantially below 50% within the next 18 to 24 months. Concurrently, the Indian market remains a high priority, with a target to grow to approximately ₹400-500 crores within the next two years, an update from a previous target of ₹800-1,000 crores in 4-5 years. The company also anticipates substantial growth from other non-U.S. jurisdictions, particularly the EMEA region (Europe, Middle East, and Africa), driven by new opportunities arising from FTAs.

The overhang of tariffs significantly impacted Q3 FY26 revenues. While recent U.S. tariff reductions (from 50% to 18%) have been announced, management clarified that Q4 FY26 will not see an immediate positive impact. The benefits require bilateral discussions with clients and will primarily apply to new orders, not current shipments. The company expects margins to normalize progressively into FY27 as these negotiations conclude and new tariff structures take effect.

Regarding raw material sourcing, Himatsingka does not exclusively source from the U.S.; a significant portion of its cotton emanates from India. Management stated that U.S. cotton is not cheaper than Indian cotton for the varietals they use, implying no cost advantage from shifting sourcing. The decision on cotton usage is more linked to product positioning and consumer preferences rather than cost benefits from U.S. tariffs.

As of December 31, 2025, the company's net debt stood at ₹2,480 crores. Management indicated that any capital expenditures for new product verticals would be accommodated within their existing annual maintenance capex buckets, suggesting no significant increase in overall capex. No specific details on gross debt, cost of debt, or shareholder returns (dividends/buybacks) were provided during the call.

In India, Himatsingka Seide operates with three brands—Himeya, Liv, and Atmosphere—catering to various price points and channels. The company primarily utilizes a Multi-Brand Outlet (MBO) presence rather than a Company-Owned, Company-Operated (COCO) store strategy, favoring an asset-light model. Its distribution spans MBOs, large format stores, hospitality, B2B, e-commerce, and quick commerce platforms, ensuring a wide reach across the country.