Shanti Spintex Limited , a prominent player in the Indian textile industry, has reported its highest-ever half-yearly revenue of ₹382.00 crores for H1 FY26, showcasing the company's robust performance and strategic growth initiatives. The company has also unveiled plans for backward integration to further enhance its operational efficiency and profitability.

Key Financial Highlights

Operational Achievements

Shanti Spintex has achieved significant milestones in its operational performance:

• Highest-ever half-yearly revenue
• Record capacity utilization of 89.90%
• Improved working capital efficiency, reducing working capital days from 19 in FY25 to 15 days in FY26
• Reduced leverage, with net debt-to-equity ratio down to 0.11x

Strategic Initiatives

The company has outlined several strategic initiatives to drive future growth and profitability:

1. Backward Integration: Shanti Spintex plans to invest ₹55.00 crores in a dyeing unit, expected to be operational by December 2026. This move aims to deliver structural cost advantages, improve consistency, and stabilize lead times.

2. Forward Integration: The recent acquisition of Teesta Spintex for forward integration is progressing well, with initial volumes of dyed fabric already sold.

3. Renewable Energy Investment: The company plans to invest in renewable energy to reduce power cost volatility and strengthen its sustainability position.

Future Outlook

Shanti Spintex has set targets for the coming years:

The company expects EBITDA margins to improve from the current 3% to 7-8% by FY28, driven by integration, efficiency, and scale.

Market Position

Shanti Spintex operates in a competitive market with an estimated 3-4% market share. The company differentiates itself through:

• Wider width looms (up to 82 inches)
• Low-cost operations due to renewable energy usage and debt-free status
• Focus on the domestic market

Challenges and Opportunities

While the company faces challenges such as pricing pressures and global market uncertainties, it sees opportunities in:

• Growing domestic denim consumption
• Integration-led margin expansion
• Improved product mix and customer relationships

Rikin Agarwal, Managing Director of Shanti Spintex, commented, "H1FY26 has been a defining period for Shanti Spintex, not only because of the performance we delivered but because of the strategic clarity with which the organization executed. We remain confident in navigating the next phase of our growth, responsibly and sustainably."

As Shanti Spintex continues to execute its strategic initiatives, the company appears well-positioned to capitalize on the growing domestic denim market while improving its operational efficiency and profitability.

Shanti Spintex , a prominent player in the textile industry, has reported exceptional financial performance for the first half of fiscal year 2026 (H1FY26). The company has achieved its highest-ever revenue, marking a significant milestone in its growth trajectory.

Key Financial Highlights

Strong Revenue Growth

Shanti Spintex has demonstrated robust financial performance by achieving a record revenue of Rs 382.00 crore in H1FY26. This impressive figure underscores the company's strong market position and effective business strategies.

Operational Efficiency

The company's operational efficiency is evident from its high capacity utilization rate of 89.90%. This near-optimal utilization indicates that Shanti Spintex is effectively managing its resources and production capabilities to meet market demand.

Improved Working Capital Management

Shanti Spintex has significantly enhanced its working capital efficiency. The cash conversion cycle has been reduced to 15 days, reflecting improved inventory management, faster collection of receivables, or better payment terms with suppliers. This improvement in working capital management can contribute to better liquidity and financial flexibility for the company.

Strengthened Balance Sheet

The company's financial health appears robust, with a net debt-to-equity ratio of 0.11x. This low ratio suggests that Shanti Spintex has maintained a conservative approach to leverage, potentially providing it with greater financial stability and room for future growth opportunities.

Factors Driving Growth

The company attributes its strong performance to two key factors:

1. Market Share Gains: Shanti Spintex has successfully expanded its presence in the market, potentially through competitive pricing, product quality, or effective marketing strategies.

2. Favorable Product Mix: The company has optimized its product portfolio to focus on higher-margin or faster-moving items, contributing to revenue growth and profitability.

These results demonstrate Shanti Spintex's ability to navigate market challenges and capitalize on opportunities in the textile sector. The company's focus on operational efficiency, working capital management, and strategic market positioning appears to be yielding positive results.