Nitin Spinners reported a strong sequential recovery in Q3 FY26, with revenue up 5.3% QoQ to INR800.68 crores and PAT increasing 27.7% QoQ to INR44.41 crores, driven by stable demand and higher sales volumes. The company is investing INR230 crores in captive solar power, expected to yield INR51 crores in annual savings, and is progressing with weaving and spinning capacity expansions. Management expressed cautious optimism about future demand and margin improvement, supported by new trade agreements and stable raw material prices.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Revenue | ₹800.68 Cr | -4.5% YoY |
| EBITDA | ₹111.54 Cr | -4.8% YoY |
| EBITDA Margin | 13.93% | -0.3% YoY |
| PAT | ₹44.41 Cr | -0.8% YoY |
| EPS | ₹7.9 | — |
| Cash EPS | ₹14.53 | — |
Segment Breakdown
| Metric | Latest | Trend |
|---|---|---|
| Revenue(crores) | 800.68 | |
| EBITDA(crores) | 111.54 | |
| EBITDA Margin | 13.93% | |
| PAT(crores) | 44.41 | |
| EPS(Rs) | 7.9 | |
| Cash EPS(Rs) | 14.53 |
| Category | Headline | |
|---|---|---|
Capex | Capex disclosed |
| Category | Target | Priority |
|---|---|---|
| Profitability | EBITDA Margin Improvement→100 to 150 bps | Medium |
| Profitability | Yarn Spread→INR115-120 | Medium |
| Cost Savings | Power Cost Savings from Solar Project→INR51 crores | High |
| Capacity | Total Solar Generating Capacity→21 crores units | High |
| Capacity | Fabric Capacity Operationalization→Production starting Oct/Nov | High |
| Capacity | Spinning Capacity Operationalization→Ready by Nov/Dec | High |
| Efficiency | Power Consumption Coverage by Solar→45% | High |
| Capacity Utilization | New Capacity Utilization→80% | High |
| # | Metric | |
|---|---|---|
| 01 | Fabric Capacity Operationalization | |
| 02 | Spinning Capacity Operationalization | |
| 03 | New Capacity Utilization Ramp-up | |
| 04 | EBITDA Margin Improvement | |
| 05 | Solar Power Cost Savings Realization |
| Severity | Risk |
|---|---|
medium | Global trade uncertainties and U.S. tariffs These pressures persisted into third quarter with the industry continuing to face tariff-related headwinds and global trade uncertainties, though modest recovery is visible. Management |
medium | Cotton price volatility and premium over international prices Cotton prices were favorable due to temporary import duty removal, but are now regaining premium over international prices; management expects stable raw material prices going forward. Management |
low | Competition from cheaper yarn imports (e.g., Bangladesh) Analyst raised concern about cheaper yarn imports from Bangladesh disrupting spinning and textile sectors; management stated no action has been taken and business continues as is. Analyst |
Nitin Spinners reported a revenue of INR800.68 crores in Q3 FY26, marking a 5.3% increase quarter-on-quarter, primarily driven by stable demand and higher sales volumes. EBITDA for the quarter stood at INR111.54 crores, with the EBITDA margin improving to 13.93% from 13.10% in the previous quarter. Profit after tax (PAT) saw a significant 27.7% sequential rise to INR44.41 crores, although it registered a marginal 0.8% decline year-on-year.
The company has approved an additional capex of INR230 crores for a captive solar power capacity of 41.1 megawatt AC, with 33 MW under open access and 8.1 MW at its Chittorgarh unit. This project, expected to be operational by Q2 FY27, is projected to generate annual power cost savings of approximately INR51 crores. Upon completion, the total solar generating capacity will reach 21 crores units per year, covering about 45% of the company's total power consumption.
Nitin Spinners is progressing with its capacity expansion in spinning and weaving. The fabric capacity, including weaving and processing, is expected to be commissioned from June/July 2026, with production starting around October/November 2026. The spinning capacity expansion is anticipated to be ready by November/December 2026. This expansion aims to offer a wider product range, cater to new demand in both domestic and international markets, and includes yarn dyeing and finishing facilities.
The textile industry faced challenges in the first half of FY26 due to US tariffs and global trade uncertainties, which persisted into Q3. However, modest recovery in demand was observed. Management expects the recent US tariff reduction and upcoming EU and UK trade deals to stimulate demand recovery, improve competitiveness, and expand the company's footprint in export markets, particularly in Europe where it already has a strong presence in cotton yarn.
Cotton prices were favorable during the quarter due to the temporary removal of import duty, though they are now regaining their premium over international prices. The yarn realization for the quarter was INR250/kg, with cotton cost at INR151/kg, resulting in a spread of INR99. The zero-duty regime for cotton imports is over, with an 11% duty now applicable, though advanced licenses allow duty-free imports for export purposes, incurring an implication cost of 6-7%.
Management foresees an improved margin profile going forward⏳, expecting EBITDA margins to improve by 100-150 bps due to increased value addition from weaving and finishing. The company plans to diversify its customer base by focusing on other geographies. While there are no definitive plans for garmenting currently, management indicated it would explore this aspect given the opening of new markets and alignments with international brands.