NITIN SPINNERS LTD. Q1 FY26 Results

Textile industry is currently going through a transient phase. Global procurement and overall shipments have been slower than expected, mainly due to ongoing tariff uncertainties and geopolitical challenges. Despite this, the Indian textile industry continues to show some steady performance. Recently, U.S. government has announced 25% tariffs on imports from India. At the government level, talks are on, and we hope the same would settle down at lower levels, which will provide level playing field with other competing countries. However, we at Nitin Spinners would not face any major impact due to U.S. tariffs as we have very limited direct exposure in this market. Trade agreements with major countries are also expected to improve India's competitiveness, although the full impact will unfold gradually over the next few years. Nitin Spinners already have presence in UK and EU, exporting both finished fabrics and yarn and we will try to build upon for increasing export to these geographies. On the demand side, we believe inventory levels across brands and retailers are at historic lows. Over the past few months, the buyers were very hesitant to place large orders and instead relying on just-in-time procurements. We see this as a positive sign for integrated manufacturers like us as once the business cycle revives, we shall be in a good position to reap the benefit. We have, at Nitin Spinners, have consistently crossed the INR800 crores revenue mark for almost last 5 consecutive quarters. And this quarter, we came just short of that milestone, which was mainly caused by uncertainty prevailing in global markets, as we just explained and reduction in yarn prices due to lower prices of cotton. At Nitin Spinners, our well-diversified product portfolio, customer base across different geographies, focus on value-added products, optimum utilization of capacities and cost efficiencies, allow us to withstand the challenges and capitalize on the opportunities. As announced earlier, we are steadily progressing on the capital investment plans as per schedule. To maintain our growth momentum, we are also increasing renewable power footprint by increasing capacity within our premises and also through strategic investment in hybrid power These initiatives of capital expansion as well as renewable power are aimed at strengthening our market positions, expanding our product portfolios, and introducing high-value specialized products.

Revenue declined Y-o-Y and Q-o-Q due to lower yarn prices in line with the lower cotton prices and lower export demand as the overseas buyers were cautious on account of uncertainty of tariffs.