Bhilwara-based textile manufacturer Nitin Spinners expects revenue of around Rs 3,800 crore (US $397.24 million) in FY27, supported by steady yarn demand, capacity expansion and stable yarn margins. The company reported an 83.6% year-on-year increase in Q1 FY27 net profit to Rs 75.27 crore (US $7.87 million), while revenue from operations rose 10.3% to Rs 875.03 crore (US $91.47 million).
The company is executing a Rs 1,350 crore (US $141.12 million) capex programme across its textile and renewable energy businesses, funded through internal accruals and debt. The new capacities are expected to contribute an additional Rs 300–400 crore (US $31.36–41.81 million) in annual revenue once fully ramped up. Renewable energy projects are expected to generate annual savings of around Rs 65–70 crore (US $6.79–7.32 million).
Nitin Spinners’ spinning capacity utilisation currently stands at 97.5–98%, while fabric utilisation is around 92%. New spinning capacity is expected to reach full production within four to five months, while fabric capacity is expected to take eight to 10 months to ramp up. During the initial phase, fabric utilisation could remain at 55–60% before moving towards existing levels.
Chairman and Managing Director Dinesh Nolkha said yarn demand and supply are currently “finely balanced”, noting that there has been no major capacity addition in the segment over the past 1.5–2 years, while some smaller capacities have exited following earlier cost pressures.
Exports currently contribute around 65% of revenue, with the company targeting a longer-term mix of 60% exports and 40% domestic sales. Management expects potential trade agreements with the UK and EU to create additional export opportunities for yarn and fabrics.
Nitin Spinners expects the higher contribution from value-added fabrics and renewable energy savings to offset some initial cost pressures from the capacity ramp-up. The company’s current market capitalisation is around Rs 3,281.84 crore (US $343.07 million).
