### **Executive Overview** Supertex Industries Limited is a specialized Indian textile manufacturer focused on the value-added processing of **Polyester and Nylon Filament Yarns**. The company’s core competencies include **Texturising, Twisting, Draw Warping, and Sizing**, transforming **Partially Oriented Yarn (POY)** into high-quality products for apparel, home furnishings, and industrial applications. As of **February 2026**, the company is navigating a strategic pivot. While historically focused on traditional yarn processing, Supertex is currently transitioning toward **Technical Textiles** and **Sustainable Materials** to capitalize on the global **"China Plus One"** sourcing shift. Despite recent liquidity challenges and debt restructuring, the company has demonstrated a capacity for revenue recovery and is actively seeking fresh capital to fund its next phase of expansion. --- ### **Core Operations and Manufacturing Footprint** Supertex operates through two primary reportable segments based on geographic destination: **Domestic** (the primary revenue driver) and **International**. The company maintains three specialized manufacturing units strategically located near major textile hubs: * **Units I & II:** Located at **Piperia Industrial Estate, Silvassa** (Dadra & Nagar Haveli). * **Unit III:** Located at **Kharvel, Dharampur** (Valsad, Gujarat). **Production Capacity and Output:** The company has shown a significant ability to scale production when market conditions allow. In **FY 2023-24**, production volume reached **5,717 MT**, representing a **59% increase** over the **3,596 MT** produced in the previous fiscal year. --- ### **Financial Performance and Capital Structure** Supertex has experienced a period of revenue volatility, characterized by a strong **FY 2023-24** followed by a dip and subsequent recovery in the **9-month period ending December 2025**. #### **Comparative Financial Summary** | Metric (₹ in Lakhs) | 9M Ended Dec 2025 | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :---: | :---: | :---: | :---: | | **Total Revenue** | **3,956** | **7,359** | **9,083** | **6,817** | | **Profit Before Tax** | **222** | **38** | **32** | **21** | | **Net Profit / (Loss)** | **199** | **(8)** | **11** | **18** | #### **Debt and Liquidity Profile** The company’s capital structure relies on a mix of internal accruals and bank borrowings. However, it is currently managing significant debt-related headwinds: * **NPA Classification:** As of **July 24, 2024**, the **PNB Term Loan** and **GECL Loan** accounts were classified as **Non-Performing Assets (NPA)**. * **Borrowing Composition (2025):** Variable interest rate borrowings stood at **₹2,140.19 Lakhs**, up from **₹1,507.03 Lakhs** in 2024, increasing sensitivity to base lending rate fluctuations. * **Working Capital:** The company maintains a fund-based limit of **₹8.5 crore** with **Axis Bank** (downsized from **₹12.5 crore**). * **Capital Employed:** Total unallocated capital employed stood at **₹3,027 Lakhs** as of December 2025. --- ### **Strategic Growth Pillars and Future Outlook** Supertex is implementing a multi-pronged strategy to move up the value chain and improve margins: * **Diversification into Technical Textiles:** The company is pivoting toward **Geo Textiles** and **High-Performance Yarns**. This aligns with the Indian market projection for technical textiles to reach **US$ 54 Bn by 2031**. * **Sustainability and R&D:** Focus on **recycled materials** and sustainable yarn products to meet stringent global environmental regulations and consumer preferences. * **Operational Modernization:** Ongoing transition from **DC drives to AC drives** to lower maintenance costs. The company is also installing **solar energy systems** and utilizing **LED lighting** and **air ventilators** to optimize energy consumption. * **Fundraising Mandate:** As of **February 2026**, the Board is actively pursuing a fundraising mandate to support business expansion, diversification, and the reduction of interest burdens. --- ### **Leadership and Governance** The company recently restructured its leadership to oversee its recovery and expansion phase: * **Mr. Ramesh Kumar Mishra:** Re-appointed as **Chairman & Managing Director** through **March 2029**. * **Mr. Harshvardhan Mishra:** Appointed as **Chief Executive Officer (CEO)** effective **February 13, 2026**. * **Mr. Sanjay Kumar Mishra:** Re-appointed as **WTD & CFO** through **March 2029**. * **Promoter Reclassification:** In late 2023, five promoters holding **2.068%** of equity were reclassified to the **Public Category** to streamline the shareholding structure. --- ### **Risk Factors and Mitigation** #### **1. Financial and Regulatory Risks** * **Statutory Arrears:** As of **December 31, 2025**, the company had unpaid statutory dues of **₹28.48 Lakhs**, including Provident Fund, TDS, and Profession Tax. * **Contingent Liabilities:** Supertex is currently contesting legal demands totaling **₹980.36 Lakhs**. | Nature of Dispute | Forum | Amount (₹ in Lakhs) | | :--- | :--- | :--- | | **Excise Duty Appeal** | Gujarat High Court | **792.11** | | **Income Tax (AY 2014-15)** | CIT Appeals | **137.82** | | **Income Tax (AY 2013-14)** | CIT Appeals | **48.44** | | **Income Tax (AY 2012-13)** | Mumbai High Court | **1.99** | #### **2. Operational and Market Risks** * **Input Volatility:** Profitability is highly sensitive to the price of **crude oil derivatives**, which dictate the cost of polyester and nylon. The company uses **long-term contracts** and **forward exchange contracts** to mitigate raw material and currency (USD/INR) fluctuations. * **Global Competition:** Intense competition from **China and Bangladesh**, combined with duty-free access for competitors in the US and EU, pressures export margins. Consequently, exports fell to **5.56%** of turnover in FY 2023-24. * **Labor and Energy:** Rising costs and a shortage of skilled labor are being addressed through increased **automation** and **debottlenecking** of production lines. --- ### **Market Context** The Indian textile and apparel market is projected to grow from **US$ 184 Bn (2024-25)** to **US$ 250 Bn by 2030-31**. Supertex is positioning itself to capture this growth by leveraging government initiatives like **PM Mitra Parks** and the increasing domestic demand for durable, lightweight synthetic fibers in both the **Apparel (US$ 180 Bn target)** and **Technical Textile** segments.