Nitin Spinners Q1 FY27 Results: Revenue Hits Record ₹875 Crore as PAT Surges 84%; ₹1,120 Crore Expansion Underway

Nitin Spinners Limited delivered a strong performance in the first quarter of FY27, with revenue reaching a record quarterly level and profitability improving sharply. The company is also progressing with a major capacity expansion focused on spinning, weaving and finishing fabrics, while increasing its renewable energy footprint.

According to the company’s Q1 FY27 investor presentation, the textile manufacturer is focusing on higher-value products, greater fabric capacity, sustainable fibres and renewable power to drive its next phase of growth.

Q1 FY27 Financial Performance

Nitin Spinners reported revenue of ₹875.03 crore in Q1 FY27, its highest-ever quarterly revenue for the second consecutive quarter.

Revenue increased 10.3% year-on-year from ₹793.3 crore in Q1 FY26 and rose 1.8% sequentially from ₹859.8 crore in Q4 FY26.

The company’s profitability improved at a faster pace:

EBITDA increased nearly 40% YoY to ₹155.58 crore, while the EBITDA margin expanded by 376 basis points to 17.78%.

Profit after tax jumped 83.6% YoY to ₹75.27 crore, compared with ₹40.9 crore in the corresponding quarter last year.

The company said the performance was supported by improved yarn realizations and better demand.

Revenue Growth Led by Yarn and Fabrics

Yarn remained the largest contributor to Nitin Spinners’ revenue during the quarter.

In Q1 FY27, yarn generated ₹633.5 crore, accounting for 72.4% of total revenue. Fabric revenue stood at ₹188.7 crore, contributing 21.6%, while other products contributed ₹52.9 crore.

Product-wise revenue

Yarn revenue increased from ₹581.5 crore in Q1 FY26 to ₹633.5 crore in Q1 FY27, representing approximately 9% growth.

Fabric revenue increased from ₹170.9 crore to ₹188.7 crore, representing 10.4% growth.

The company is increasingly focusing on fabric and other value-added products as part of its strategy to improve its product mix and margins.

Exports Continue to Drive the Business

Nitin Spinners has a strong international presence, exporting to more than 55 countries across six continents.

Exports accounted for 65.2% of revenue in Q1 FY27, compared with 62% in Q1 FY26.

Export revenue increased from ₹491.6 crore in Q1 FY26 to ₹570.3 crore in Q1 FY27.

The diversified geographic footprint provides the company with access to multiple international markets and helps reduce dependence on any single region.

Production and Sales Volumes

During Q1 FY27, yarn production stood at 26,534 MT, compared with 27,202 MT in Q1 FY26.

Knitted fabric production increased significantly to 1,465 MT, compared with 1,104 MT a year earlier.

Griege woven fabric production stood at 9.52 million metres, while finished fabric production reached 8.12 million metres.

On the sales side, the company sold:

• 20,985 MT of yarn
• 1,412 MT of knitted fabric
• 9.02 million metres of woven fabrics

The company is simultaneously expanding production capacity to support future growth.

Nitin Spinners’ Manufacturing Capacity

Nitin Spinners has built a vertically integrated textile manufacturing platform with operations spanning yarn, knitted fabrics and finished and printed woven fabrics.

The company currently has:

• 4,34,832 spindles
• 231 airjet weaving machines
• 77 circular knitting machines
• 1.10 lakh tonnes annual yarn capacity
• 40 million metres annual woven and finished fabric capacity
• 11,000 tonnes annual knitted fabric capacity
• 5,864 rotors
• 264 airjet spinning positions

The company operates manufacturing facilities in Bhilwara and Chittorgarh, Rajasthan.

It has more than three decades of experience, having been established in 1992.

Focus on Higher-Value Yarn Products

Yarn remains Nitin Spinners’ core business, but the company is increasing its focus on specialized and higher-value products.

Its portfolio includes cotton and blended yarns, organic cotton yarns, BCI/TBC certified yarns, recycled-fibre yarns, Supima and Giza certified yarns, fancy slub yarns, core-spun yarns and other specialized products.

The company is also adding products such as:

• Cotton Linen
• Cotton Modal
• Cotton Viscose
• Dyed yarn
• Sustainable-fibre products
• Recycled-fibre yarns

The strategy is aimed at improving product differentiation and supporting better margins.

Fabric Expansion to Become a Major Growth Driver

One of the key themes in the investor presentation is the company’s expansion into higher-value finished fabrics.

Nitin Spinners currently has 40 million metres of annual finished and printed woven fabric capacity.

The company plans to add another 35 million metres per annum, taking total weaving and finishing fabric capacity to approximately 75 million metres per annum.

This represents an increase of around 88% over the existing capacity.

The company intends to use the additional capacity to enter higher-margin and new market segments.

Its fabric portfolio includes cotton, cotton-spandex, polyester/cotton, dyed and printed fabrics, as well as fabrics with specialized finishes.

Applications include:

• Fashion and image wear
• Uniforms
• Healthcare apparel
• Industrial and protective wear
• Defence wear
• Sportswear
• Innerwear
• Baby wear
• Winter wear
• Hotel apparel

The company also plans to expand beyond formalwear into casualwear, women’s apparel, kidswear and other multi-wear categories.

₹1,120 Crore Capacity Expansion Plan

Nitin Spinners is executing a major expansion project with an estimated investment of approximately ₹1,120 crore.

The expansion includes:

• 22,400 tonnes per annum additional spinning capacity
• 35 million metres per annum additional weaving and finishing capacity

The company expects the expanded capacities to begin commercial operations from Q3 FY27.

Approximately 60% of the additional spinning capacity is expected to be consumed internally for fabric manufacturing. This is expected to support greater integration and potentially improve the company’s margin profile.

Key objectives of the expansion

The company has identified several strategic objectives:

1. Add premium and value-added products
2. Expand the product portfolio
3. Enter new markets
4. Increase integrated operations
5. Reduce operating costs
6. Lower carbon footprint
7. Promote responsible sourcing
8. Expand margins

The project is expected to be funded through internal accruals and term debt.

Renewable Energy Expansion

Sustainability is another important part of Nitin Spinners’ long-term strategy.

The company currently has approximately 41.4 MW of renewable energy capacity.

It plans to further increase its renewable power footprint through solar and hybrid power projects.

The company has announced:

• Addition of 8.8 MW solar power capacity
• Hybrid power purchase agreements of 18 MW and 10 MW
• Additional 41 MW solar capacity expansion
• Approximately ₹230 crore investment for the additional solar capacity

The company’s total planned solar and hybrid power capacity is expected to significantly increase its renewable contribution.

According to the presentation, around 50–55% of annual power consumption could eventually be covered through solar and hybrid power arrangements.

The company expects renewable energy investments to help reduce carbon emissions as well as operating costs.

Strong Long-Term Growth Track Record

Nitin Spinners has grown significantly over the past decade.

Revenue increased from approximately ₹767 crore in FY16 to ₹3,214 crore in FY26, representing roughly 4.2 times growth.

Over the same period:

• EBITDA increased from ₹137 crore to ₹453 crore
• PAT increased from ₹44 crore to ₹178 crore
• Gross fixed assets increased from ₹625 crore to ₹2,560 crore
• Yarn revenue increased from ₹588 crore to ₹2,373 crore
• Fabric revenue increased from ₹138 crore to ₹676 crore
• Cash flow from operations increased from ₹100 crore to ₹411 crore

The company said it generated approximately ₹2,083 crore of cash from operations over the past 10 years.

Balance Sheet Strength Improving

The company’s net worth increased from ₹1,028.9 crore in FY23 to ₹1,470.7 crore in FY26.

Its net debt-to-equity ratio improved from 0.95 times in FY23 to 0.76 times in FY26.

This indicates that the company has strengthened its balance sheet while continuing to invest in manufacturing capacity.

The EBITDA margin stood at 14.09% in FY26 compared with 12.34% in FY23.

FY23-FY26 Financial Performance

Although FY26 revenue was lower than FY25, profitability remained strong, with EBITDA at ₹452.8 crore and PAT at ₹177.6 crore.

Sustainable Textile Products as a Growth Opportunity

Nitin Spinners is also increasing the use of sustainable fibres across its product portfolio.

The company uses:

• Organic cotton
• BCI cotton
• Recycled fibres
• Other sustainable fibre solutions

The company believes rising demand for sustainable textiles from domestic and international brands can provide additional growth opportunities.

Its environmental initiatives include zero-liquid-discharge systems, sewage treatment, rainwater harvesting and energy-efficient equipment.

Awards and Industry Recognition

Nitin Spinners has received several industry and state-level awards, particularly for exports and energy conservation.

The company has received recognition from TEXPROCIL for cotton yarn and grey fabric exports, while it has also received awards for employment generation.

It has also received the Rajasthan Energy Conservation Award and various state-level awards for export performance.

Management Outlook

Commenting on the Q1 FY27 performance, Chairman and Managing Director Dinesh Nolkha said the company remained confident of delivering year-on-year growth in FY27.

The management expects additional yarn and fabric capacities to support future growth, strengthen manufacturing capabilities and improve profitability.

The company also sees a positive long-term outlook for the Indian textile industry, supported by trade agreements, policy measures and improved price parity between international and domestic cotton.

What Investors Should Watch

The Q1 FY27 presentation highlights several important factors that could shape Nitin Spinners’ performance going forward:

1. Capacity commissioning: The new spinning and fabric capacities are expected to become operational from Q3 FY27.

2. Fabric expansion: The addition of 35 million metres of fabric capacity could increase the contribution of higher-value products.

3. Margin improvement: Greater vertical integration and a higher share of value-added products could support profitability.

4. Export demand: With exports accounting for 65.2% of Q1 revenue, international textile demand remains an important factor.

5. Renewable energy: Expansion of solar and hybrid power capacity could reduce energy costs and improve sustainability.

6. Sustainable products: Growing demand for organic, BCI and recycled-fibre products could create additional opportunities.

This article is based on information presented by Nitin Spinners Limited in its Q1 FY27 investor presentation. It is intended for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consider their risk profile before making investment decisions.