Nitin Spinners Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Nitin Spinners Ltd filed with BSE on 14 May 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 of INR859.8 crores in Q4 FY'26, up 7.4% quarter-on-quarter and 2.2% year-on-year, with EBITDA margin expanding to 15.17%. Management attributed the improvement to better demand, higher yarn prices and operational efficiencies following the removal of US tariffs and restocking across the value chain. For the full year, revenue declined 2.8% to INR3,213.9 crores due to lower yarn and raw material prices in the first half, while management outlined an ongoing capex plan for fabric and spinning capacity expansion along with renewable power additions expected to commercialize in the second half of FY'27.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue: INR859.8 crores (Q4 FY'26)
p. 3
“Revenue for Q4 FY '26 stood at INR859.8 crores that is higher by 7.4% on a quarter-on-quarter basis and 2.2% on a year-on-year basis.”
P. Maheshwari, page 3 of the filed PDF · View the filing
EBITDA: INR130.4 crores (Q4 FY'26)
p. 3
“EBITDA for the quarter stood at INR130.4 crores, that is a growth of 16.9% on quarter-on-quarter basis and 8.4% on a year-on-year basis.”
P. Maheshwari, page 3 of the filed PDF · View the filing
EBITDA margin: 15.17% (Q4 FY'26)
p. 3
“EBITDA margin for the quarter stood at 15.17% against previous quarter margin of 13.93% and Q4 '25 margins of 14.30%.”
P. Maheshwari, page 3 of the filed PDF · View the filing
Profit after tax: INR57.4 crores (Q4 FY'26)
p. 3
“Profit after tax for the quarter stood at INR57.4 crores, that is higher by 29.2% on a quarter-on-quarter basis and 23.7% on a year-on-year basis.”
P. Maheshwari, page 3 of the filed PDF · View the filing
EPS: INR10.20 (Q4 FY'26)
p. 3
“EPS and cash EPS for the quarter stood at INR10.20 and INR16.74 per share, respectively.”
P. Maheshwari, page 3 of the filed PDF · View the filing
Revenue: INR3,213.9 crores (FY'26)
p. 4
“revenue for FY '26 stood at INR3,213.9 crores, that is marginally lower by 2.8% on a year-on-year basis, mainly due to lower yarn and raw material prices particularly in first half.”
P. Maheshwari, page 4 of the filed PDF · View the filing
EBITDA margin: 14.09% (FY'26)
p. 4
“EBITDA for the year stood at INR452.8 crores, that is degrowth of 4% on a year-on-year basis and EBITDA margin for the year stood at 14.09% against 14.26% last year.”
P. Maheshwari, page 4 of the filed PDF · View the filing
Profit after tax: INR177.6 crores (FY'26)
p. 4
“Profit after tax for the year stood at INR177.6 crores, that is higher by 1.2% on a year-on-year basis.”
P. Maheshwari, page 4 of the filed PDF · View the filing
Net debt to equity: 0.76x (as of 31 March 2026)
p. 4
“our net debt to equity has come down to 0.76x as of 31st March '26 as compared to 0.89x in 31st March 2025.”
P. Maheshwari, page 4 of the filed PDF · View the filing
Export share of revenue: 63% (Q4 FY'26)
p. 3
“in Q4 FY '26, exports contributed nearly 63% and domestic market contributed 37% of total revenue.”
P. Maheshwari, page 3 of the filed PDF · View the filing
Dividend: INR3 per equity share (FY'26)
p. 4
“The Board of Directors have recommended a dividend of 30% on equity share capital, that is INR3 per equity share of INR10 each for the financial year ended 31st March 2026.”
P. Maheshwari, page 4 of the filed PDF · View the filing
Spinning capacity utilization: over 98% (Q4 FY'26)
p. 4
“in Q4 FY '26, spinning capacity was operating at over 98% utilization and woven fabric capacity was operating at over 90% utilization.”
P. Maheshwari, page 4 of the filed PDF · View the filing
Yarn spread: INR120 to INR125 per kg (current quarter)
p. 9
“The last quarter spreads were about INR110 a kg and now it is about INR125 -- around INR120 to INR125, depending on different counts and other things.”
Dinesh Nolkha, page 9 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.
Fabric capacity expansion — 75 million meters annually · second half of FY'27
stated firmly by Dinesh Nolkha
p. 5
“Post expanding our fabric capacity, we'll add another 35 million meters to 70 (Errata: Actual Number to be read as 75) million meters annually and spinning capacity by another 22,000 tons to about 130,000 tons.”
Dinesh Nolkha, page 5 of the filed PDF · View the filing
Capex commercialization — second half of FY'27
stated firmly by Dinesh Nolkha
p. 5
“As regards to the present ongoing capex, the plan is progressing very well. It is expected to commercialize in second half of FY'27.”
Dinesh Nolkha, page 5 of the filed PDF · View the filing
Renewable power capacity — nearly 100 megawatts
stated firmly by Dinesh Nolkha
p. 6
“With this, the total renewable capacity addition during -- including PPAs during the year will be about 75 megawatts. And with the already installed capacity, we would be very near to 100 megawatts of power capacity.”
Dinesh Nolkha, page 6 of the filed PDF · View the filing
Power cost savings — around INR50 crores per annum
stated as an aspiration by Dinesh Nolkha
p. 7
“we are expecting that total savings will be around INR50 crores per annum once this complete thing is fructified.”
Dinesh Nolkha, page 7 of the filed PDF · View the filing
Power cost savings this year — INR30 crores to INR35 crores · current year
stated conditionally by Dinesh Nolkha
p. 7
“during this year itself, we expect that we will have a saving of around INR30 crores to INR35 crores.”
Dinesh Nolkha, page 7 of the filed PDF · View the filing
EBITDA margin — 16% to 20% · FY'27
stated as an aspiration by Dinesh Nolkha
p. 7
“our normal margin should be in the range of 16% to 20%. We expect that we should be able to maintain -- we should be able to fall into this level during this current year, in the financial year '27.”
Dinesh Nolkha, page 7 of the filed PDF · View the filing
Fabric capacity commissioning — October to December
stated conditionally by Dinesh Nolkha
p. 7
“at this moment, as it looks that we may start some of our capacity for the fabric from -- in the quarter starting from October to December.”
Dinesh Nolkha, page 7 of the filed PDF · View the filing
Spinning capacity commissioning — January to February of next year
stated conditionally by Dinesh Nolkha
p. 7
“And the spinning capacity by December -- by January to February of next year.”
Dinesh Nolkha, page 7 of the filed PDF · View the filing
Total debt — INR1,900 crores to INR2,000 crores
stated conditionally by Dinesh Nolkha
p. 10
“our normal total debt, we are expecting to be less than -- in the range of about INR1,900 crores to INR2,000 crores after this, including the working capital exposures.”
Dinesh Nolkha, page 10 of the filed PDF · View the filing
Revenue growth — 30% to 35% of existing revenue
stated as an aspiration by Dinesh Nolkha
p. 16
“we expect that we should be -- from here onwards, we should be easily able to add 30% to 35% of our -- to our existing revenue numbers.”
Dinesh Nolkha, page 16 of the filed PDF · View the filing
Knitted fabric utilization — 65% to 70% · 1 to 1.5 years
stated as an aspiration by Dinesh Nolkha
p. 16
“we expect that the normal utilization level of 65% to 70% will come back to the knitted fabric in another 1 to 1.5 years.”
Dinesh Nolkha, page 16 of the filed PDF · View the filing
Yarn and fabric capacity utilization — 97% to 98% for yarn, 90% plus for fabric · next 2 quarters
stated firmly by Dinesh Nolkha
p. 17
“we expect that the utilization to be in the range of 97% to 98% for the yarn business. And for the fabric business, it will also be 90% plus only. So this will continue for next 2 quarters before the new capex comes on board.”
Dinesh Nolkha, page 17 of the filed PDF · View the filing
Cotton import duty removal — permanent removal · before 6 months
stated as an aspiration by Dinesh Nolkha
p. 16
“yes- of course, it should happen. 6 months is a long period. We should be able to see this before that.”
Dinesh Nolkha, page 16 of the filed PDF · View the filing
Hybrid power purchase agreement — 10 megawatts · operational by Q3 '27
stated firmly by Dinesh Nolkha
p. 6
“we announced an additional investment of INR9.5 crores for a hybrid power purchase agreement of 10 megawatts, which will be operational by Q3 '27.”
Dinesh Nolkha, page 6 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 described a three-part scheme covering capital subsidy, interest subsidy, and other rebates, noting the capital subsidy is realized over 10 years.
Answered by Dinesh Nolkha
Asked by Rehan Saiyyed: What Rajasthan Investment Promotion Scheme benefits apply to the new capex and how much could they improve project IRR?
p. 6
“So the capital subsidy part is ranging depending on the capital allocation, which you are doing plus the employment generation you are doing from 20% to 25%, 27%.”
Dinesh Nolkha, page 6 of the filed PDF · View the filing
Management framed the benefit in absolute savings rather than per-unit terms, citing expected annual savings once fully implemented.
Answered by Dinesh Nolkha
Asked by Rehan Saiyyed: What percentage reduction in power cost per unit is expected by FY'28 from renewable investments?
p. 7
“we are expecting that total savings will be around INR50 crores per annum once this complete thing is fructified.”
Dinesh Nolkha, page 7 of the filed PDF · View the filing
Management clarified the timing is spread across H2, not starting precisely in October for both segments.
Answered by Dinesh Nolkha
Asked by Kishore Kumar: Will new fabric and yarn capacity start commercial production from October?
p. 7
“Not October exactly. H2 means the second half of this financial year.”
Dinesh Nolkha, page 7 of the filed PDF · View the filing
Management said fabric prices move with a lag relative to yarn and cotton prices.
Answered by Dinesh Nolkha
Asked by Kishore Kumar: Why has fabric realization been flat despite yarn realization rising sequentially?
p. 8
“fabric generally falls with a lag. So it takes more time to pass on the increases as well as when the prices goes down, it is slow to reduce as well.”
Dinesh Nolkha, page 8 of the filed PDF · View the filing
Management said current price levels reflect a course correction and are likely to be absorbed without hurting demand, unless prices rise much further.
Answered by Dinesh Nolkha
Asked by Kishore Kumar: Will rising US apparel inflation from tariffs affect demand?
p. 8
“if they are further significantly increased by another 5% to 10%, then it may have an impact.”
Dinesh Nolkha, page 8 of the filed PDF · View the filing
Management said spreads have risen from around INR110 to about INR120-125 per kg.
Answered by Dinesh Nolkha
Asked by Jatin Damania: What are current yarn spreads versus last quarter?
p. 9
“The last quarter spreads were about INR110 a kg and now it is about INR125 -- around INR120 to INR125, depending on different counts and other things.”
Dinesh Nolkha, page 9 of the filed PDF · View the filing
Management said the current level is around the median of a historical range and expects it to be sustainable given reduced industry capacity and rising demand.
Answered by Dinesh Nolkha
Asked by Riddhesh Gandhi: Are current spreads of INR125 sustainable, and how have they trended historically?
p. 11
“this INR120 to INR125 margin should be sustainable going forward as well.”
Dinesh Nolkha, page 11 of the filed PDF · View the filing
Management said margins in pure synthetic yarns have remained static even as raw material costs rose, unlike blended yarns.
Answered by Dinesh Nolkha
Asked by Rahul Jain: Have synthetic yarn margins improved along with rising polyester prices?
p. 11
“in purely in synthetics, the margin has still remained static.”
Dinesh Nolkha, page 11 of the filed PDF · View the filing
Management pointed to the ongoing capex adding over INR1,000 crores in revenue plus normalization of yarn prices contributing further growth.
Answered by Dinesh Nolkha
Asked by Reena Kashyap: What is Nitin Spinners' outlook for top-line growth over the next couple of years?
p. 16
“we have embarked upon a capacity expansion of more than INR1,000 crores, nearly INR1,100 crores. So this should yield us another more than INR1,000 crores in our top line going forward.”
Dinesh Nolkha, page 16 of the filed PDF · View the filing
Management said there was no revenue impact but transit times and freight costs rose, particularly for Europe.
Answered by Dinesh Nolkha
Asked by Uday Kumar: Has the Iran-US war impacted logistics costs or revenue?
p. 18
“there is an increase of about 75% to 80% increase in comparison to what was there in the month of February.”
Dinesh Nolkha, page 18 of the filed PDF · View the filing
Risks flagged
US tariff uncertainty affecting demand and capacity utilization in H1 FY'26
p. 4
“U.S. tariff uncertainties, which affected the textile value chain, particularly in first half of the year, resulted in demand destruction and underutilization of capacities.”
Dinesh Nolkha, page 4 of the filed PDF · View the filing
West Asia conflict disrupting supply chains and raising freight costs
p. 4
“The second half was again full of uncertainties due to ongoing West Asia conflict, which has disrupted supply chains, increased the freight costs as well as transit time and increase in the raw material and other input prices.”
Dinesh Nolkha, page 4 of the filed PDF · View the filing
Rising gas costs for gas-based yarn manufacturing
p. 17
“the costs have increased, and it is nearly -- at this point of time, it has gone up 1.7x from what it was in the February.”
Dinesh Nolkha, page 17 of the filed PDF · View the filing
Loss of knitted fabric customers to competing countries due to tariffs
p. 16
“in this process in last 1 year, we also lost some of the customers to other competing countries, which we are trying to make up.”
Dinesh Nolkha, page 16 of the filed PDF · View the filing
Increased sea freight costs from Middle East conflict
p. 18
“Sea freight cost, there is an increase, especially for the Europe, there is an increase of about 75% to 80% increase in comparison to what was there in the month of February.”
Dinesh Nolkha, page 18 of the filed PDF · View the filing
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