| Experienced management and long operational track record
EYPL is promoted by Mr. Akshat Agrawal and Mr. Aayush Agrawal, who bring strong technical and sectoral expertise to the company’s operations, enabling the development of a diversified product portfolio across linen blends, viscose, modal, mélange and specialty yarns. The company has demonstrated a steady operational track record with 57,424 operational spindles and consistent annual revenues over FY24–FY25. EYPL is currently implementing an expansion of 14,400 new spindles, which will enhance the installed capacity from 8,613.6 TPA to 10,773.6 TPA, adding an incremental ~2,160 TPA post-commissioning. This expansion is expected to strengthen scale, improve operating leverage, and support future growth.
Moderate financial risk profile
EYPL’s financial risk profile is moderate, supported by an improved net worth and comfortable gearing and coverage indicators. The tangible net worth increase to Rs. 54.92 crore in FY25 from Rs. 21.59 crore in FY24, driven by equity infusion and profit accretion. Total debt stood at Rs. 54.13 crore in FY2025 (comprising long-term borrowings of Rs. 9.08 crore, unsecured loans from promoters of Rs. 25.35 crore, short-term borrowings of Rs. 19.69 crore, and CPLTD of Rs. 2.14 crore), broadly in line with Rs. 49.60 crore in FY2024. Consequently, gearing improved to 0.99x in FY2025 from 2.30x in FY2024. The TOL/TNW ratio improved to 2.51x in FY2025 from 5.66x in FY2024, supported by higher net worth Debt-protection metrics remain adequate, with interest coverage ratio (ICR) at 4.34x and debt service coverage ratio (DSCR) at 3.36x in FY25, though moderated from 32.84x and 15.04x respectively in FY24 due to higher interest costs. The TOL/TNW improved to 2.51x in FY25 from 5.66x in FY24, reflecting the strengthened capital structure, while the Debt/EBITDA improved to 3.22x in FY25 from 4.73x in FY24. Acuite believes that the financial risk profile of the company is likely to improve in the near to medium term on account of likely improvement in the scale of operations and no debt funded capital expenditure.
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| Stable scale of operations albeit moderation in profitability
EYPL registered steady year-on-year growth in FY2025, with total revenues increasing to Rs. 143.49 crore from Rs. 130.35 crore in FY2024, supported by marginal improvement in sales volume and better realizations. However, despite the rise in topline, profitability moderated over the same period, with EBITDA declining to Rs. 9.74 crore in FY25 from Rs. 10.16 crore in FY24, reflecting margin contraction primarily due to elevated raw-material costs and higher finance charges. PAT also reduced to Rs. 5.69 crore in FY25 compared to Rs. 6.18 crore in FY24, further evidencing pressure on bottom-line performance. The company reported a total operating income of Rs. 81.50 crore during 9M FY26 and achieved a PAT of Rs. 7.05 crore, aided in part by significant non-operating income. EYPL’s profitability profile remains sensitive to volatility in imported fibre prices, demand fluctuations among export-oriented customer segments, and inherent competitive intensity of the yarn manufacturing industry.
Intensive working capital operations
EYPL’s operations remain working-capital intensive, reflected in gross current assets (GCA) days rising to 258 days in FY25, up from 171 days in FY24. The elongation is driven by elevated inventory and receivable levels across both years. Inventory days increased from 122(FY24) to 159(FY25), primarily because EYPL's suppliers who imports linen fibre faced extended import lead time and supply-chain disruptions, which compelled the company to maintain higher buffer stock. Debtor days also rose sharply from 9(FY24) to 55(FY25), as the company reports gross receivables without netting off customer advances, thereby inflating the reported debtor position. Conversely, the creditor period improved to 106 days in FY25 from 89 days in FY24, providing partial support to the working-capital cycle. However, fund-based limits remained nearly fully utilised, with average utilisation at ~99.6% for the 12 months ending December 2025. Acuité believes the company’s working-capital cycle is likely to remain intensive in the near term given the prevailing operational dynamics.
Highly competitive textile industry and susceptibility of profits to the fluctuations in the raw material prices
The textile industry in India is highly fragmented and competitive marked by the presence of a large number of organised and unorganised players. The company is exposed to intense competition from both domestic players as well as established players in the overseas market. The shifts in consumption patterns may have an impact on the operations of the company. The company maintains a 2-3 month stock of cotton and linen to mitigate the effects of price fluctuations.
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