Nitin Spinners Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Nitin Spinners Ltd filed with BSE on 13 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Nitin Spinners reported its highest-ever quarterly revenue for the second consecutive quarter at Rs 875 crore, up 10.3% year-on-year, with EBITDA margin expanding to 17.78% from 14.02% a year earlier. Management attributed the improvement to higher yarn realizations, cost-saving initiatives from renewable power and automation, and improved price parity between domestic and international cotton. The company discussed ongoing capacity expansion in spinning, weaving and fabric finishing, with partial contribution expected in the second half of FY27.
Numbers mentioned
Revenue: INR875 crores (Q1 FY27)
p. 3
“Revenue for Q1 stood at INR875 crores, which is a growth of 10.3% on a year-on-year basis and 1.8% on a quarter-on-quarter basis.”
P. Maheshwari, page 3 of the filed PDF · View the filing
EBITDA before other income: INR155.6 crores (Q1 FY27)
p. 3
“EBITDA before other income for the quarter stood at INR155.6 crores, which is a growth of 39.85% on year-on-year basis and 19.3% on quarter-on-basis.”
P. Maheshwari, page 3 of the filed PDF · View the filing
EBITDA margin: 17.78% (Q1 FY27)
p. 3
“EBITDA margin for this quarter stood at 17.78% against Q1 FY26 margins of 14.02% is an increase of 376 bps on a year-on-year basis and 261 bps on quarter-on-quarter basis.”
P. Maheshwari, page 3 of the filed PDF · View the filing
Profit after tax: INR75.3 crores (Q1 FY27)
p. 3
“Profit after tax for the quarter stood at INR75.3 crores is a growth of 83.63% on year-on-year basis and 31.2% on quarter-on-quarter basis.”
P. Maheshwari, page 3 of the filed PDF · View the filing
EPS: INR13.39 (Q1 FY27)
p. 3
“EPS and cash EPS for the quarter stood at INR13.39 and INR20.08 per share, respectively.”
P. Maheshwari, page 3 of the filed PDF · View the filing
Export share of revenue: 65% (Q1 FY27)
p. 3
“In terms of geographical split of revenue, export contributed nearly 65% and domestic 35% of the”
P. Maheshwari, page 3 of the filed PDF · View the filing
Spinning capacity utilization: 98% (FY27)
p. 4
“In FY27, our spinning capacity was operating at 98% utilization and woven fabric over 92% utilization.”
P. Maheshwari, page 4 of the filed PDF · View the filing
Cotton-yarn spread: INR130 (Q2 FY27)
p. 5
“In the first quarter, I think in the last quarter of the last financial year, the spreads were in the range of about INR110. And now it is in the range of or INR130.”
Dinesh Nolkha, page 5 of the filed PDF · View the filing
Gross margin: about 40% plus levels (Q1 FY27)
p. 11
“I would be -- if you see our gross margins they have”
Dinesh Nolkha, page 11 of the filed PDF · View the filing
Fabric revenue: INR700 crores plus (FY26)
p. 13
“Our fabric every if you see today is totally about INR700 crores plus for the last financial year.”
Dinesh Nolkha, page 13 of the filed PDF · View the filing
Solar power benefit realized: about INR1.2 crores to 1.5 crores (Q1 FY27)
p. 10
“I think about 1.2 crores or 1.5 crores is the exact number which has come in this particular quarter rest isgoing to come going forward.”
Dinesh Nolkha, page 10 of the filed PDF · View the filing
Last year's cotton crop size: about 318 to 320 lakh bales (FY26 season)
p. 19
“I think we will close at around 318 to 320 lakh bales around that level only.”
Dinesh Nolkha, page 19 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 16% to 20% · long term
stated as an aspiration by Dinesh Nolkha
p. 18
“we should be -- kind of product profile as well as the kind of cost metrics we have, we should be still remain in this range.”
Dinesh Nolkha, page 18 of the filed PDF · View the filing
Fabric revenue — INR1,200 crores · FY28
stated firmly by Dinesh Nolkha
p. 13
“Going forward in FY28, we are expecting that our revenues will go up to INR1,200 crores from this.”
Dinesh Nolkha, page 13 of the filed PDF · View the filing
Yarn capacity ramp-up — by 31st March
stated firmly by Dinesh Nolkha
p. 10
“I think we should be as far as yarn is concerned, I think we would have ramped up all our capacities by 31st of March of this financial year.”
Dinesh Nolkha, page 10 of the filed PDF · View the filing
Spinning capacity commissioning — around December
stated firmly by Dinesh Nolkha
p. 15
“be on stream by around December.”
Dinesh Nolkha, page 15 of the filed PDF · View the filing
Renewable power expansion completion — end of Q3 FY27
stated firmly by Dinesh Nolkha
p. 5
“The renewable power expansion plan is also going as per schedule and expected to be operational by the end of Q3 '27.”
Dinesh Nolkha, page 5 of the filed PDF · View the filing
Solar-driven EBITDA benefit — around 50 crores annually · from Q4
stated conditionally by Dinesh Nolkha
p. 11
“Yes I think annually it will be about it should at the EBITDA level it should be around 50 crores.”
Dinesh Nolkha, page 11 of the filed PDF · View the filing
New capex — none · till FY28
stated firmly by Dinesh Nolkha
p. 15
“we are not considering any new capex in the next FY28 this is all done, till FY28.”
Dinesh Nolkha, page 15 of the filed PDF · View the filing
Blended power cost per unit — about INR5.50
stated conditionally by Dinesh Nolkha
p. 17
“our blended cost should be in the range of about INR5.50.”
Dinesh Nolkha, page 17 of the filed PDF · View the filing
Revenue growth CAGR — about 15%
stated as an aspiration by Dinesh Nolkha
p. 15
“If you see any block of 3 to 5 years, we have consistently had a CAGR of about 15% and we hope to maintain same.”
Dinesh Nolkha, page 15 of the filed PDF · View the filing
FY27 performance versus FY26 — FY27
stated firmly by Dinesh Nolkha
p. 4
“We anticipate closing financial year”
Dinesh Nolkha, page 4 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said spreads improved from about INR110 to INR130, driven by improved demand, capacity consolidation and better price parity between Indian and international cotton.
Answered by Dinesh Nolkha
Asked by Madhur Rathi: What were spreads in Q1 FY27 and current spreads in Q2, and what drove the improvement?
p. 5
“In fact, there are a couple of reasons, but there is an improved demand scenario and also consolidation of thecapacities.”
Dinesh Nolkha, page 5 of the filed PDF · View the filing
Management said they expect to maintain but declined to commit to improvement.
Answered by Dinesh Nolkha
Asked by Ankit Gupta: Will current margins of 17-18% sustain going forward?
p. 7
“We are expecting same. In view of the cost initial cost saving initiatives going forward which is also going to kick in and also the margins looking reasonable.”
Dinesh Nolkha, page 7 of the filed PDF · View the filing
Management explained volumes were consumed more internally by fabric divisions and some stock was delayed due to logistics challenges, not a real decline.
Answered by Dinesh Nolkha
Asked by Narayan Danak: Why did yarn volumes decline quarter-on-quarter and year-on-year despite improved demand?
p. 6
“There is -- I think there is no de-growth as such. The volumes have de-grown because our fabric divisions have consumed more.”
Dinesh Nolkha, page 6 of the filed PDF · View the filing
Management said fabric only passes through actual cotton cost increases without margin improvement, unlike yarn where they have improved margins.
Answered by Dinesh Nolkha
Asked by Abhishek Shah: Has the fabric business begun passing through raw material cost increases like yarn has?
p. 10
“in the case of fabric business only whatever raw material increase actually has happened in the cotton that is only getting passed on.”
Dinesh Nolkha, page 10 of the filed PDF · View the filing
Management reiterated the 16-20% range as the endeavour but declined to guarantee reaching the upper end.
Answered by Dinesh Nolkha
Asked by Reena: Will EBITDA margins reach the upper end of the 16-20% guided range in the long term?
p. 18
“It is always the endeavour of the management to go to the upper level of the band which we have discussed and that is a continuous effort.”
Dinesh Nolkha, page 18 of the filed PDF · View the filing
Management said capital is being deployed for growth rather than buybacks at this stage.
Answered by Dinesh Nolkha
Asked by Kushal Sengupta: Is the company considering a buyback?
p. 11
“it would not be some it would not be prudent for us to go for buyback at this point of time.”
Dinesh Nolkha, page 11 of the filed PDF · View the filing
Management said acreage is roughly similar to last year, quality currently looks good, but the coming month's rains will be decisive.
Answered by Dinesh Nolkha
Asked by Uday Kumar: How is the cotton crop size and quality shaping up for the coming season?
p. 19
“The major factor today would be how the rains pan out during the next one month that will decide the size of the crop.”
Dinesh Nolkha, page 19 of the filed PDF · View the filing
Risks flagged
Global geopolitical and cotton price volatility could affect margin sustainability
p. 7
“Unless we have -- see an extraordinary changes in global scenarios or something like that. Political geopolitical things we should be able to maintain.”
Dinesh Nolkha, page 7 of the filed PDF · View the filing
Logistics challenges caused delayed dispatches affecting reported volumes
p. 6
“So there was slight increase in the stock with us which got dispatched later because of the non-availability of the vessels or other things logistics as I highlighted in my earlier comments also.”
Dinesh Nolkha, page 6 of the filed PDF · View the filing
US tariff-related uncertainty has impacted the knit fabric business
p. 18
“We had a major presence of our knit fabric business in the US which has impacted because of this a lot of changes which is happening very often in the tariff rates and others.”
Dinesh Nolkha, page 18 of the filed PDF · View the filing
Rainfall in the coming weeks could affect cotton crop size and quality
p. 19
“But it is at this point of time it is expected that it should remain at the similar levels as of last year.”
Dinesh Nolkha, page 19 of the filed PDF · View the filing
Fabric business unable to improve margins beyond raw material pass-through
p. 10
“We are not able to improve upon the margins as we are able to improve upon the margins in the yarn business.”
Dinesh Nolkha, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.