Strong brand recall buoyed by experienced management and established presence in the hosiery innerwear industry
DIL enjoys strong market position in the branded innerwear industry in India. Started as Bhawani Textiles in 1973, Dollar began its export journey to the middle east and other countries in 1995; further got listed in NSE in 2017 and in BSE in 2018. DIL’s board includes Mr. Vinod Kumar Gupta (Managing Director), Mr. Binay Kumar Gupta (Managing Director), Mr. Krishan Kumar Gupta (Whole-time director), Mr. Bajrang Kumar Gupta (Whole-time director) and Mr. Gopal Krishnan Sarankapani (Whole-time director), who have rich experience spanning more than two decades in the innerwear industry. The third generation of promoters have also been inducted into the business.
DIL has a strong distribution network of over 1,500+ dealers and over 1.45 lakh retailers which it has developed over the years. The company over the years has also been able to create a strong brand recall for its products across various segments. Over the years, the company has been able to introduce various range of products to increase its reach to a wider section of the population. The Company has also launched Project Lakshya to add to its distributor/ retailer portfolio and enable a sustainable working capital cycle along with expected contribution to revenues. The company has a substantial pan-India presence contributing to 96% of the revenues and has established its market abroad in countries like UAE, Oman, Jordan, Qatar, Kuwait, Bahrain, Yemen, Iraq, Nepal, and Sudan i.e. around 4% of revenues.
Acuite believes the company’s established track record of operations, continuous efforts to further penetrate in the D2C segment, management’s rich experience and expertise will further bolster the business, going forward.

Healthy scale of operations
The revenue of the company stood at Rs.1682.19 Cr. in FY25 as against Rs. 1549.13 crore in FY2024. This was supported by a y-o-y volume growth of 4.6% in FY25. Further, the company has achieved Rs. 854.14 Cr. in H1FY26 as against Rs.767.80 Cr. in H1FY25. The growth is driven by stable demand across the product categories with increase in volume sold and high margin products. Additionally, the rise in share of e-commerce sales and modern trade has supported revenue growth. Dollar Always (41%) and Dollar Man (37%) generates highest revenue during H1FY26.
EBITDA margins increased to 10.53% in FY2025 as against 10.02% in FY2024.  Further, this improved to 11.89% in H1FY26 from 10.56% in H1FY25 due to stabilization of cotton and yarn prices, reduction in advertising expenses i.e. 6.2% in H1FY26 as against 7.2% in H1FY25, and optimized utilization of employee costs. Additionally, backward integration through setting up of new spinning mill in December 2024 led to enhanced operational efficiency, improved yarn quality leading to better realizations, and minimum wastage. The company also has its focus on high margin segments.
The PAT margin stood at 5.37% in FY25 as against 5.77% in FY 2024. Further, improved to 6.45% in H1FY26 from 5.21% in H1FY25. Acuite believe that scale of operations will expand in terms of volume growth, while price realizations are expected to remain stable.

Merger plans will help to boost scale of operations in terms of profitability margins
DIL is planning to merge with nine promoter group companies into a single entity under the “Dollar” brand, with the process expected to be completed by January 2027. The consolidation aims to eliminate structural overlaps in terms of employee costs, strengthen operational control and enhance in house production capacity, and significantly reduce related-party transactions in terms of rent and subcontracting expenses. A promoter trust will be created to hold 50% of the promoter’s shares. This will help keep ownership stable for the long term, ensure continuity, and improve governance through a clear and organized structure.Acuite believes that the merger will help the company to improve the profitability margins in the next 2 years.

Strong Financial risk profile
DIL’s financial risk profile is strong marked by high net worth and comfortable capital structure. The net worth of the company stood at Rs.863.58 Cr. as on March 31, 2025, as against Rs.787.30 crore as on March 31, 2024. The company follows a conservative leverage policy reflected in its gearing of 0.36 times in FY25 as against 0.38 times in FY2024. The total outside liability to total net worth (TOL/TNW) stood at 0.66 times as on March 31, 2025, as against 0.68 times as on March 31, 2024. The interest coverage ratio (ICR) stood moderate at 6.98 times and debt service coverage ratio (DSCR) stood at 4.49 times as on March 31, 2025. Acuite believes that the financial risk profile would remain on similar levels due to debt funded capex plans.

Intensive Working capital cycle
The working capital cycle of the company remains intensive marked by Gross Current Assets (GCA) of 245 days as on March 31, 2025, as against 242 days as on March 31, 2024. The inventory days stood at 124 days as on March 31, 2025, as against 122 days as on March 31, 2024. The company markets a wide range of products and accordingly has to maintain large quantity of inventory of each of its product type apart from the inventory of raw material. This increase is largely attributed to seasonal factors. It is also influenced by the number of SKUs they manage and the production process, which spans approximately three months from the procurement of yarn or cotton to the delivery of finished goods. The receivable days of the company stood at 119 days as on March 31, 2025, as against 115 days as on March 31, 2024. Against this, the Company receives credit from its suppliers of around 95 days in FY25. Acuite believes the working capital cycle will remain at similar levels over the medium term due to the inherent nature of such businesses.