Shanti Spintex Ltd — Updates, 15-05-2025: Company Update

Shanti Spintex has announced a board meeting on the financial results for the quarter and half-year. FY25 marked a milestone with ₹710 Cr revenue, 40% growth YoY, full capacity utilization, and stable profitability—EBITDA at ₹20.38 Cr and PAT ₹10.2 Cr. The company is moving towards forward integration with a ₹9 Cr acquisition of a finishing unit, expected to add ₹5–6 Cr in annual profits, and plans a ₹60 Cr backward integration dyeing unit by FY27 to boost margins and control costs. Capacity utilization stands at 89%, targeting 2.5% PAT margin in FY26 and 3.5–4% by FY27. Solar power capex (~₹7–8 Cr) is underway, aiming for ₹2.5 Cr savings. Exports will gradually form 5–10% of revenue, focusing on Latin America, Mexico, and Egypt. The dealer network expansion is planned beyond Gujarat into other metros, with value-added products contributing 70–75% of revenue. Net debt is controlled at ~₹3 Cr post-acquisition, with capex largely funded through internal accruals and some debt, maintaining a peak debt-to-equity ratio around 0.35. The company benefits indirectly from shifting garment orders to India due to global trade agreements.