1. Textile margin recovery - The Textile Division lifted PBIT from ₹1.26 cr to ₹10.28 cr in FY26 on nearly flat revenue of ₹335.81 cr, driven by cost optimisation and the customs-duty exemption on imported cotton extended through December 2025. If the duty relief and export incentives persist, the division sustains the margin step-up that turned group PAT positive.
2. Agency order-book revival - Management expects the government's PM MITRA parks, PLI incentives, and recent tariff relaxations to spur fresh spinning-mill investments and modernisation, leading to a better order book for LMW machinery sales. Agency revenue of ₹18.01 cr carries a 44.6% PBIT margin, so even modest top-line growth drops through sharply to group earnings.
3. Direct yarn export growth - Direct yarn exports rose to ₹41.60 cr in FY26 from ₹35.41 cr in FY25, and total yarn exports including merchant shipments reached ₹64.87 cr. Foreign Trade Agreements are expected to further open markets, lifting the division's realisations and capacity utilisation.
4. Renewable energy cost lock-in - The company met 69.44% of its energy needs from wind and solar in FY26 and invested in five group-captive renewable entities during the year. As these captive projects scale, a larger share of power cost is fixed, insulating the 7.7% group OPM from grid-price volatility.
5. Tamil Nadu MOU for regulatory fast-tracking - A non-binding MOU signed on 25 November 2025 with the Tamil Nadu government's Guidance agency promises infrastructural support and regulatory facilitation for permissions, approvals, and incentives. When converted into specific allotments, it lowers the time and cost of any future expansion across all three divisions.
6. LMW order-flow stability - The related-party arrangement with LMW, valid through 31 March 2030, supplied ₹74.11 cr of agency and engineering revenue in FY26 under a ₹300 cr transaction limit. The multi-year contract gives the Engineering Division a base-load that supports the utilisation gains already underway.