Mafatlal Industries Limited , a prominent player in the textile industry, has reported robust financial results for the first half of fiscal year 2026 (H1FY26), showcasing impressive growth across key metrics.

Financial Highlights

The company's performance for H1FY26 demonstrates significant improvements in revenue and profitability. Here's a breakdown of the key financial metrics:

Mafatlal Industries has shown remarkable growth in a challenging market environment, with notable improvements across all key financial indicators.

Revenue and Profitability Growth

Mafatlal Industries reported revenue from operations of ₹2,269.90 crores for H1FY26, marking a substantial 56.8% increase from ₹1,447.30 crores recorded in the same period last year. This growth represents the company's highest-ever half-yearly revenue, underscoring its strong market position and execution capabilities.

The company's profitability also saw significant improvement. Operating EBITDA rose to ₹76.50 crores, a 53.5% increase compared to H1FY25. Moreover, profit before tax surged by 63.7% to reach ₹71.20 crores, demonstrating the company's ability to effectively manage costs while driving revenue growth.

Key Growth Drivers

The impressive financial performance was primarily driven by successful execution of orders in the Consumer Durables and Textile segments. Notably, the company fulfilled major institutional orders, including:

• Supply of consumer durables to 6.6 lakh beneficiaries in Maharashtra
• Delivery of 133.93 lakh meters of uniform fabric across the country

Financial Position and Dividend

Mafatlal Industries has strengthened its financial position by reducing its gross debt to ₹58.00 crores as of September 2025, down from ₹68.30 crores in March 2025. This reduction in debt reflects the company's focus on improving its balance sheet.

In light of the strong performance, the Board of Directors has approved an interim dividend of ₹1.25 per equity share for FY26, rewarding shareholders for their investment.

Future Outlook

The company maintains a robust order book of ₹900.00 crores, indicating a strong pipeline for future growth. Additionally, Mafatlal Industries reported a Return on Capital Employed (ROCE) of 21.0% for FY25, demonstrating efficient use of capital and potential for sustained profitability.

Conclusion

Mafatlal Industries' H1FY26 results showcase the company's ability to drive substantial growth and improve profitability in a competitive market. The record-breaking revenue, significant order book, and improved financial metrics signal confidence in the company's strategic direction and operational execution. As Mafatlal Industries continues to capitalize on opportunities in the consumer durables and textile segments, investors and market watchers will likely keep a close eye on its performance in the coming quarters.

Mafatlal Industries Limited (MIL), a prominent player in the textile industry, has entered into a significant shareholders agreement with its subsidiary, Mafatlal Apparel Exports Private Limited (MAEPL), and existing shareholder Mr. Sagar Birnale. The agreement, executed on October 3, 2025, aims to establish a framework for the management, operations, and inter-shareholder relationships within MAEPL.

Ownership Structure and Agreement Details

The shareholding structure of MAEPL is as follows:

The shareholders agreement covers several key aspects of MAEPL's governance, including:

1. Management structure
2. Shareholder meetings
3. Share transfers
4. Operational matters

Key Provisions of the Agreement

• Board Composition: MIL will appoint the majority of directors on MAEPL's board, ensuring significant control over the subsidiary's operations.
• Liability Limitation: MIL's liability is restricted to its shareholding percentage, which stands at 51%.
• Arm's Length Transactions: All transactions between the parties will be conducted at arm's length, maintaining transparency and fairness.

Impact on Mafatlal Industries Limited

According to the company's disclosure, the agreement does not have any direct impact on MIL's management or control. Furthermore, no additional liability has been imposed on the parent company as a result of this agreement.

Regulatory Compliance

The shareholders agreement has been disclosed in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This disclosure ensures transparency for investors and regulatory bodies regarding the company's strategic moves and inter-company relationships.

Conclusion

This shareholders agreement marks a significant step for Mafatlal Industries Limited in structuring its relationship with its subsidiary, MAEPL, and partner Mr. Sagar Birnale. By clearly defining the management structure and operational guidelines, MIL aims to foster a productive and well-governed environment within its subsidiary, potentially leading to enhanced value creation for all stakeholders involved.