Nitin Spinners Limited — Investor Meet, 07-11-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Nitin Spinners' Q2 FY26 revenue stood at INR 760.08 Cr, down 8% YoY, with H1 revenue at INR 1,553.40 Cr, down 4% YoY, mainly due to reduced selling prices and global trade uncertainties. EBITDA margin was 13.1% (vs 14% last year), with PAT at INR 34.78 Cr for the quarter. Exports contributed ~61% of revenue.

Management highlighted ongoing challenges from U.S. tariffs and subdued demand, leading to margin pressures. However, they anticipate H2 FY26 improvement driven by the temporary cotton import duty waiver (until Dec 31) and potential U.S.-India trade agreement. Spinning capacity utilization is strong at >95%.

A significant INR 1,100 Cr capex is underway, set to boost fabric capacity by over 50% and spinning by ~25% (mostly for internal fabric use). This expansion, targeting value-added products, aims for an additional INR 1,000 Cr in annual revenue upon full utilization, with INR 400 Cr expected in FY27. Cost optimization efforts include a new 18MW renewable energy investment, projected to save INR 10-12 Cr annually in power costs. Long-term debt-to-equity remains prudent at 0.53. The company is actively diversifying markets beyond the U.S. and focusing on UK/EU and Africa. Investor sentiment appears cautiously optimistic for a demand rebound and margin normalization in coming quarters.