United Leasing and Industries Limited is a Haryana-based diversified enterprise primarily engaged in the high-end textile embroidery sector. While maintaining a legacy presence in manufacturing and significant real estate holdings in the **Gurugram** region, the company is currently undergoing a strategic transformation. This involves the modernization of its industrial base and a recent expansion into the sports management and training sector. --- ### **Strategic Business Segments & Operational Infrastructure** The company transitioned from a single-segment textile operation to a dual-segment model during the **2025-26** fiscal period to diversify revenue streams. | Segment | Operational Focus | Key Assets & Status | | :--- | :--- | :--- | | **Textile Embroidery** | Manufacturing high-quality embroidered fabrics for domestic and international markets. | Operates **two computerized** high-quality embroidery machines; currently undergoing **phased upgrades**. | | **Sports Academy** | Sports training, management, and talent development. | Formally identified as a reportable business segment as of **December 2025**. | **Manufacturing & Asset Base:** * **Gurugram Facility:** The primary manufacturing unit is located in **Gurugram, Haryana**. While the process is not classified as power-intensive, the company has integrated a **Solar Plant** to optimize energy costs. * **Real Estate Holdings:** The company owns a **significant land parcel** in the Gurugram district. This land is recorded as Property, Plant, and Equipment (**PPE**) and was last revalued in **FY 2021-22**. * **Asset Maintenance:** Management conducts physical verification of PPE in a phased cycle every **3 years**. The company currently reports **zero** intangible assets. --- ### **Growth Roadmap & Market Positioning** The company is pivoting toward a growth-oriented strategy centered on technological modernization and alignment with national industrial goals. * **Sectoral Tailwinds:** Management aims to capitalize on the Indian embroidery industry’s projected **CAGR of 8-10%** and the national target of **US$ 100 billion** in textile exports by **2030**. * **Modernization Program:** A **phased up-gradation** of embroidery machinery is underway to improve operational efficiency and meet global quality standards. * **Product Diversification:** Plans are in place to expand beyond traditional garments into **home décor**, **accessories**, **high-value Man-Made Fibre (MMF)** apparel, and **technical textiles**. * **Policy Alignment:** The company is positioning itself to leverage Government of India incentives, including the **PLI Scheme (₹10,683 crore outlay)**, the Amended Technology Upgradation Fund Scheme (**ATUFS**), and the Merchandise Exports from India Scheme (**MEIS**). --- ### **Financial Performance & Capital Structure** United Leasing has demonstrated a steady recovery in profitability over the last two fiscal years, though it remains sensitive to global economic volatility. **Standalone Financial Summary:** | Metric (₹ in Lacs) | FY 2024-25 | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | :--- | | **Total Revenue** | **803.93** | **726.19** | **1,044.45** | | **Net Profit (PAT)** | **11.26** | **8.39** | **55.58** | | **Earnings Per Share (₹)** | **0.38** | **0.28** | **1.85** | **Debt Profile & Credit Facilities:** As of March 31, 2025, the company reduced its **Secured Borrowings** to **₹27.79 Lacs** (from **₹38.46 Lacs**). Total borrowings, including inter-corporate deposits, stand at **₹506.82 Lacs**, all at **Fixed Interest Rates**. * **Aditya Birla Capital:** **₹2.71 Crore** (as of March 2024) at **10.95%**, secured by company property. * **SIDBI:** **₹17.29 Lakhs** at **8.96%**, secured against the **Solar Plant**. * **Mercedes-Benz Financial:** **₹35.83 Lakhs** at **7.72%**, secured against a vehicle. --- ### **Capital Allocation & Governance Framework** The Board has established expansive limits to facilitate rapid scaling and corporate acquisitions. * **Investment & Borrowing Limits:** The company has an approved **Aggregate Investment Limit** of up to **₹1,000 Crore** (beyond standard Section 186 limits) for loans, securities, and acquisitions. It is authorized to provide loans/guarantees up to **₹20 Crore** to subsidiaries and JVs. * **Leadership:** **Mr. Ashish Khanna** serves as Managing Director for a term ending **September 27, 2027**. His remuneration is capped at **₹6 Lakhs per annum**, subject to Board revision. * **Related Party Ecosystem:** The company maintains deep operational ties with group entities **RLF Limited** and **SIPL Textiles Private Limited**. An omnibus resolution in **September 2025** authorized transactions with RLF Limited up to **₹5 Crores** and with SIPL Textile up to **₹50 Crores**. --- ### **Risk Factors & Internal Control Observations** Investors should note several qualifications and market risks that impact the company’s profile. **1. Financial Reporting & Audit Qualifications:** * **Asset Misstatement:** Auditors noted that **₹2.80 Crores** received from an agreement to sell land was subtracted directly from the **Gross Block of Land** rather than being recorded as a liability (Advance). This has resulted in an understatement of both assets and liabilities. * **Unbooked Interest Income:** In **FY 2024-25**, the company failed to book interest income on loans to group companies (at **9.25% p.a.**), leading to an estimated understatement of **Other Income** by **₹6,55,098**. Similar omissions were noted in **Q3 FY 2025-26**. **2. Operational & Market Risks:** * **Export Sensitivity:** Historical performance shows vulnerability to inflation and economic downturns in the **USA and Europe**, which directly impact garment export demand. * **Raw Material Volatility:** Profit margins are highly susceptible to fluctuations in the price of **cotton yarn** and fabrics. * **Foreign Exchange:** In **FY 2022-23**, the company reported **zero** foreign exchange earnings against an outgo of **₹2.02 Crores**. **3. Regulatory & Compliance:** * **Labour Codes:** The company is navigating the transition to **4 New Labour Codes** effective **November 21, 2025**. While the codes are active, the full notification of supporting rules remains a transitional risk. * **Concentration Risk:** There is a high dependency on related party transactions for material sourcing and financing, with inter-corporate loans and borrowings consistently set at a fixed rate of **9.25% p.a.**