­Experienced management and established presence in the industry
The group is promoted by Mr. Mohmed Umar General and his three sons, Mr. Mohmed Amin General, Mr. Mohmed Juned General and Mr. Mohmed Zaid General. The group has a presence since 1995 and has more than two decades of established track record in the textile industry. The group has longstanding relationships with its customers and suppliers of over two decades. Further, group has certified tie ups with reputed foreign brands of Zara & H&M. Also, it has a recognised domestic presence in dealing with brands like Reliance Trends, Snitch, etc.

Improvement in operating revenue and margins
The group reported an improvement in its operating performance during FY2025, with operating income increasing to Rs. 311.10 Cr. as compared to Rs. 199.77 Cr. in FY2024, registering robust year-on-year growth driven primarily by capacity expansion which increased from 444 lakh meters per annum to 807 lakh meters per annum in FY2025 and higher production volumes. Accordingly, the EBITDA margin stood healthy at 22.05% in FY2025 (22.25% in FY2024), despite incremental costs associated with higher scale of operations. However, PAT margins moderated to 7.82% in FY2025 from 11.33% in FY2024 due to increased interest and depreciation on account of debt-funded capex.

The growth momentum continues in current year with the group achieving a topline of Rs.434 Cr. till March 27, 2026. The operating margins have improved to 27.85% owing to increased focus better margin higher-quality fabric and savings in power cost with full year operations of the renewable facility.

Going forward, supported by capacity stabilisation, sustained demand from established customers, and benefits from the ongoing and proposed capex, the group is expected to witness further improvement in scale of operations.

Moderate financial risk profile
The financial risk profile of the group remains moderate, marked by moderate networth, gearing and debt protection metrics. The tangible net worth increased to Rs. 207.17 Cr. as on March 31, 2025, from Rs. 167.09 Cr. as on March 31, 2024, primarily driven by accretion of profits and infusion of quasi-equity to fund the capex. Total debt increased to Rs. 274.85 Cr. in FY2025 from Rs. 224.24 Cr. in FY2024, largely on account of borrowings undertaken for capex activities. Consequently, the gearing level stood at 1.33 times in FY2025, broadly stable compared to 1.34 times in FY2024. Debt protection metrics, however, moderated with interest coverage at 2.85 times in FY2025 as against 4.51 times in FY2024, reflecting higher interest costs during the capacity ramp-up phase. Nevertheless, the Debt-EBITDA ratio improved to 3.98 times in FY2025 from 5.01 times in FY2024, supported by improved operating earnings.

Going forward, the financial risk profile of the group is expected to improve despite debt funded capex in FY27 on account of improved operating profit levels.

Intensive working capital operations
The group continues to exhibit working capital-intensive operations, characteristic of the textile manufacturing industry. During FY2025, the GCA days stood at 278 days in FY2025 (307 days in FY2025). Inventory days increased to 167 days in FY2025 from 137 days in FY2024, reflecting higher raw material stocking to support increased production levels and mitigate raw material price volatility. Debtor days remained largely stable at 100 days in FY2025 compared to 102 days in FY2024, indicating consistent collection efficiency and stable credit terms with customers. Creditor days moderated to 89 days in FY2025 from an elevated level of 209 days in FY2024, which included outstanding creditors related to capex. The average bank limit utilization for fund based limits stood high at ~94% for the past 12 months ending Dec 25.

Although working capital intensity increased, it remains aligned with the group’s expanding scale of operations and sectoral characteristics, with gradual moderation expected as capacities stabilize.

Susceptibility of operating performance to raw material price volatility
The group’s primary raw material is polyester, which is a derivative of crude oil and, therefore, inherently exposed to volatility in global crude oil prices. Any sharp movement in crude oil prices can directly impact the procurement cost of polyester. Further, the ongoing geopolitical tensions in West Asia could exert upward pressure on crude oil prices, thereby leading to significant price hikes in polyester in the near to medium term.

As a mitigant, the group generally procures raw materials in advance to ensure timely execution of orders and typically maintains a three month order pipeline. As on date, the group has sufficient raw material inventory to cater to its production requirements for the next 1–1.5 months, which provides near term visibility and cushions the impact of short term price volatility.

While volatility in crude linked raw material prices remains a key risk, the company’s ability to pass through cost increases to customers will remain a key monitorable.

• Improvement in scale of operations at sustainable profitability margins     
• Improvement in financial risk profile with Debt/ EBITDA reducing below 2.0 times

• ­Decline in operating performance with net cash accruals falling below Rs 30 Crs
• Higher than expected increase in debt levels impacting the financial risk profile
• Significant elongation in the working capital