Spinning capacity utilization
98%
+2pp YoY
Operating at near-full capacity, reflecting strong demand.
NITINSPINNERS
Diversified
28 Apr 2026
Nitin Spinners Limited — Q4 FY26
Nitin Spinners reported its highest-ever quarterly revenue of ₹859.8 crore in Q4 FY26, up 2.2% YoY, driven by improved demand and yarn prices.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Nitin Spinners reported its highest-ever quarterly revenue of ₹859.8 crore in Q4 FY26, up 2.2% YoY, driven by improved demand and yarn prices. EBITDA grew 8.4% YoY to ₹130.4 crore, with margins expanding 87 bps to 15.17% on better realization and cost savings. PAT surged 23.7% YoY to ₹57.4 crore. The company is executing a ₹1,100 crore capex to add 35 million meters of fabric and 22,000 tons of spinning capacity, expected to commercialize in H2 FY27. Management guided EBITDA margins to normalize in the 16-20% range for FY27, supported by sustained yarn spreads of ₹120-125/kg and renewable energy savings of ₹30-35 crore. Key risks include potential demand disruption from further US tariff hikes and ongoing Middle East tensions impacting freight costs.
Key Numbers
Woven fabric capacity utilization
90%
+5pp YoY
Utilization improved YoY, with fabric prices lagging yarn but expected to catch up.
Yarn spread (cotton)
₹125/kg
+15/kg QoQ
Spread improved from ₹110/kg in Q3, driven by restocking and supply constraints.
Export revenue share
63%
+1pp YoY
Exports remain dominant; China demand increased to 15-16% of shipments.
Management Guidance
EBITDA margin target of 16-20% for FY27
Management expects normalized EBITDA margins to fall within 16-20% range in FY27, supported by improved yarn spreads and cost savings.
Management guidance marginsRevenue growth of 30-35% from current levels
New capex of ₹1,100 crore expected to add over ₹1,000 crore to topline, plus 5-7% from price normalization, totaling 30-35% growth.
Management guidance revenueRenewable energy savings of ₹30-35 crore in FY27
Expected annual savings of ₹50 crore once fully operational; FY27 savings estimated at ₹30-35 crore from renewable power additions.
Management guidance otherNew capacity commercialization in H2 FY27
Fabric capacity to start from Q3 FY27, spinning by Q4 FY27; total capacity to reach 130,000 tons yarn and 52 million meters fabric.
Management guidance expansionKey Risks
US tariff escalation impact on demand
Further 5-10% tariff increase could negatively affect demand; current 10% tariff is manageable as customers had planned for 20%.
medium · analyst_questionMiddle East conflict disrupting logistics
Freight costs to Europe up 75-80% and transit times extended by two weeks; though mostly passed on via FOB terms, residual margin impact possible.
medium · analyst_questionCotton import duty uncertainty
Industry requests permanent removal of cotton import duty; government response timeline unclear, affecting raw material cost competitiveness.
medium · management_commentaryKnitted fabric segment recovery delay
Knitted fabric utilization dropped due to US tariffs; recovery expected in 1-1.5 years, but customer loss to competitors may persist.
low · data_observationNotable Quotes
Our normalized margin should be in the range of 16 to 20%. We expect that we should be able to fall into this level during this current year.
There's no way back. Some of these capacities have gone out because of obsolescence, lack of working capital. I don't expect that majority of the capacity which had very small economic sense will come back.
We have already spent more than 300 crore rupees already on the project at the moment and balance will be spent during this year.
Frequently Asked Questions
What was Nitin Spinners's revenue in Q4 FY26?
Nitin Spinners reported revenue of ₹860 Cr in Q4 FY26, representing a +2.2% change compared to the same quarter last year.
What guidance did Nitin Spinners management give for FY27?
EBITDA margin target of 16-20% for FY27: Management expects normalized EBITDA margins to fall within 16-20% range in FY27, supported by improved yarn spreads and cost savings. Revenue growth of 30-35% from current levels: New capex of ₹1,100 crore expected to add over ₹1,000 crore to topline, plus 5-7% from price normalization, totaling 30-35% growth. Renewable energy savings of ₹30-35 crore in FY27: Expected annual savings of ₹50 crore once fully operational; FY27 savings estimated at ₹30-35 crore from renewable power additions. New capacity commercialization in H2 FY27: Fabric capacity to start from Q3 FY27, spinning by Q4 FY27; total capacity to reach 130,000 tons yarn and 52 million meters fabric.
What are the key risks for Nitin Spinners in FY27?
Key risks include US tariff escalation impact on demand — Further 5-10% tariff increase could negatively affect demand; current 10% tariff is manageable as customers had planned for 20%.; Middle East conflict disrupting logistics — Freight costs to Europe up 75-80% and transit times extended by two weeks; though mostly passed on via FOB terms, residual margin impact possible.; Cotton import duty uncertainty — Industry requests permanent removal of cotton import duty; government response timeline unclear, affecting raw material cost competitiveness.; Knitted fabric segment recovery delay — Knitted fabric utilization dropped due to US tariffs; recovery expected in 1-1.5 years, but customer loss to competitors may persist..
Did Nitin Spinners meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Nitin Spinners Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.