Shanti spintex Limited's Board of Directors held a strategic meeting on 27th February 2026, approving several key business decisions that position the company for expanded operations and growth opportunities. The meeting was conducted at the company's corporate office in Ahmedabad from 4:30 P.M. to 5:05 P.M.

Board Meeting Decisions

The board meeting resulted in three major approvals that will impact the company's operational and financial framework:

NCLT Resolution Process Participation

The board approved Shanti Spintex Limited's participation as a consortium member in the Corporate Insolvency Resolution Process (CIRP) of Rajeshwari Cotspin Limited. This decision involves submitting an Expression of Interest (EOI) and Resolution Plan to the National Company Law Tribunal (NCLT), subject to applicable legal provisions. The participation in this resolution process demonstrates the company's strategic approach to business expansion through acquisition opportunities.

Financial Infrastructure Enhancement

The board authorized the company to avail credit facilities from various financial institutions and lenders, specifically including Tata Capital Limited. This approval encompasses the execution of necessary facility documents and creation of appropriate security arrangements. The enhanced credit facilities will provide the company with improved financial flexibility for its operations and growth initiatives.

Commodity Trading Authorization

In a move to diversify its trading capabilities, the board approved opening trading accounts and registration as Client/Beneficial Owner (BO) with authorized commodity exchange members. This decision includes authorization of designated signatories for undertaking commodity transactions, expanding the company's operational scope into commodity trading activities.

Meeting Details

The board meeting was held at Shanti Spintex Limited's corporate office located at A-1601, Navratna Corporate Park, Ambli Bopal Road, Ahmedabad – 380058, Gujarat. Company Secretary and Compliance Officer Mohini Singhal (Membership No. A47724) signed the regulatory disclosure, ensuring compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

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.