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    Nitin Spinners Limited

    NITINSPIN
    Textiles·3 Feb 2026
    Management Summary

    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.

    Highlights

    5

    • Revenue increased by 5.3% QoQ to INR800.68 crores in Q3 FY26, driven by stable demand and higher sales volumes.

    • PAT grew by 27.7% QoQ to INR44.41 crores in Q3 FY26.

    • EBITDA margin expanded to 13.93% in Q3 FY26 from 13.10% in Q2 FY26.

    • Announced INR230 crores capex for 41.1 MW captive solar capacity, expected to save INR51 crores annually.

    • Spinning capacity utilization remained high at over 98%, and woven fabric at over 90%.

    Concerns

    3

    • Revenue declined by 4.5% YoY to INR800.68 crores in Q3 FY26 due to weaker demand and reduced selling prices.

    • PAT declined by 0.8% YoY to INR44.41 crores in Q3 FY26.

    • Knitting capacity utilization was low at 40% due to past US tariff issues.

    What Changed2

    vs Q4 FY26

    Guidance items15 → 8 (-7)Risks discussed6 → 3 (-3)

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue₹800.68 Cr-4.5%YoY
    2. 02EBITDA₹111.54 Cr-4.8%YoY
    3. 03EBITDA Margin13.9%-0.3%YoY
    4. 04PAT₹44.41 Cr-0.8%YoY
    5. 05EPS₹7.9

    Segment breakdown

    Export Revenue
    61% Share of Revenue
    Domestic Revenue
    39% Share of Revenue
    Spinning Capacity Utilization
    99% Utilization
    Weaving/Processing Capacity Utilization
    91% Utilization
    Knitting Capacity Utilization
    40% Utilization
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Guidance & targets

    8
    CategoryTargetPriority
    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

    Fabric Capacity Operationalization

    H2 FY27
    CurrentCommissioning from June/July 2026
    TargetProduction start in Oct/Nov 2026

    Why it matters

    Key milestone for new revenue streams and wider product range from the weaving expansion.

    First of all, the fabric capacity should be there in the early second half of this year of next financial year. We should be we are going to commission the things from June, July onwards and expect the production to start somewhere from October, November onwards.

    How to verify

    capital_allocation.capex.purposes[description='Weaving expansion (ex-spinning)']

    Risks & concerns

    3
    RiskSeverity

    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 acknowledged

    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 acknowledged

    medium

    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 not addressed

    low

    Q&A highlights

    8

    “So with this tariff reduction and we're becoming competitive in comparison to rest of our competing countries, I think we will be back -- this business will be back with us in short time. So that should add to our demand profile and also which could ultimately lead to the margins improvement also.”

    Clarifies the direct and indirect exposure to US markets and the expected positive impact on demand and margins from the tariff reduction.

    asked by Rina Kashyap

    2 min read6 chapters

    Detailed Narrative

    01

    Q3 FY26 Financial Performance and Sequential Recovery

    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.

    02

    Strategic Capex for Green Energy and Cost Efficiency

    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.

    03

    Capacity Expansion and Product Diversification

    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.

    04

    Market Dynamics and Impact of Trade Agreements

    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.

    05

    Raw Material and Pricing Trends

    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%.

    06

    Future Outlook and Strategic Focus

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.