**The Ruby Mills Limited (TRML)**, incorporated in **1917**, is a storied Indian enterprise with a dual-engine business model spanning composite textile manufacturing and strategic real estate development. Managed by the third and fourth generations of the **Shah family**, the company is currently transitioning from a traditional manufacturer into a high-value asset owner and sustainable energy adopter. --- ### I. Strategic Business Segments & Asset Portfolio TRML operates through two primary reportable segments, leveraging nearly a century of brand equity and prime Mumbai real estate. | Segment | Core Activities | Key Assets & Locations | |:---|:---|:---| | **Textiles** | Spinning, weaving, fabric processing, and garmenting (Cotton/Synthetic/Blends). | **Dhamni Complex** (Spinning/Weaving) & **Kharsundi Complex** (Processing), Maharashtra. | | **Real Estate** | Development, sale, and leasing of Grade-A commercial spaces. | **The Ruby Tower**, Dadar, Mumbai (**0.412 msf** total carpet area). | #### **The Real Estate Engine: 'The Ruby' Tower** The company’s flagship real estate asset is **The Ruby Tower** in Dadar, Mumbai’s geographic center. Following the adoption of **DCPR 2034** regulations, the company received a renewed **Occupation Certificate (O.C.)** in **January 2022**, enabling full commercial utilization of all floors. * **Occupancy & Tenants:** Occupancy stood at **67%** as of January 2026. High-profile tenants include **Ernst & Young, Cathay Pacific Airways, DSP Asset Managers, IMCD India,** and **Signet Excipients**. * **Concentration:** The top three tenants occupy **75%** of the leased area, representing significant counterparty concentration. * **Monetization Strategy:** TRML executed an MoU in **January 2025** to retain exclusive control over the tower. Unsold inventory is currently valued at **double the amount** due from the developer, with full recovery of dues expected within **2 to 3 years**. --- ### II. Textile Operations: Modernization & Efficiency TRML operates as a vertically and horizontally integrated textile player, focusing on high-quality fabric manufacturing for the organized segment across **Tier 1 to Tier 6** towns. * **Technological Upgradation:** The company is targeting a **10% to 15%** productivity increase through: * Investment in modern **Sumum Airjet looms**. * **Automatisation** of **Ring frame** and **winding departments**. * Installation of **5 KTTM Ring Frame Model RX300** energy-saving motors. * Retrofitting **contamination clearers** in the blowroom to ensure superior yarn quality. * **R&D and Innovation:** Focus areas include **import substitution**, **new finishes**, and process optimization. R&D costs are integrated into total project capital expenditure rather than quantified separately. * **Supply Chain:** Supported by a century-old network of channel partners. Credit terms are structured at **21 days** for Textiles and **60–120 days** for the Garment division. --- ### III. Financial Performance & Credit Profile TRML has shown resilience in revenue, though margins have faced pressure from input costs and vacancy shifts. #### **Key Financial Metrics** | Metric (₹ Crore) | 1HFY26 | FY25 | FY24 | FY23 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **155.20** | **242.71** | **237.02** | **259.65** | | **EBITDA** | **27.00** | **45.40** | **55.37** | **51.56** | | **EBITDA Margin (%)** | **17.41%** | **18.71%** | **23.40%** | **19.90%** | | **Debt-Equity Ratio** | **-** | **-** | **0.35** | **0.43** | #### **Debt Structure & Liquidity** The company’s credit rating was upgraded to **'IND BBB+'/Stable** in **February 2026**. * **Ring-Fencing:** A **Lease Rental Discounting (LRD)** facility with **Union Bank of India** uses a **cash flow waterfall mechanism** via an escrow account to prioritize debt servicing. * **Liquidity Buffer:** As of September 2025, TRML held **₹116.85 crore** in mutual funds/government securities and a **₹11 crore** cash balance. A **Debt Service Reserve Account (DSRA)** of **₹8.5 crore** (3 months of obligations) is maintained. * **Repayment Schedule:** **₹30.66 cr** (FY26), **₹37.94 cr** (FY27), and **₹44.22 cr** (FY28). --- ### IV. Sustainability & Energy Transition TRML is aggressively pivoting toward green energy to mitigate rising power costs and enhance its ESG standing. Total solar investment has exceeded **₹12 crore**. | Solar Asset | Capacity | Status | | :--- | :--- | :--- | | **Initial Plant** | **283.5 KW** | Operational | | **Dhamni Plant** | **2 MW** | Commissioned FY24 | | **Kharsundi Plant** | **1 MW** | Commissioned FY24 | | **Total Capacity** | **3.28 MW** | **Active** | In **March 2026**, the company furthered this strategy by incorporating two SPVs—**Ruby Greentech K Private Limited** and **Ruby Greentech T Private Limited**—for a **Solar Open Access project**. --- ### V. Governance & Strategic Leadership The company is led by a stable, long-term management team with recent independent oversight additions. * **Key Personnel:** **Hiren M. Shah** (Chairman), **Bharat M. Shah** and **Viraj M. Shah** (MDs), and **Purav H. Shah** (CEO & CFO). * **Stability:** Executive leadership was re-appointed for **5-year terms** effective **April 2024**. * **Independent Oversight:** **Shri Paras Savla** was appointed as an Independent Director in **December 2025**. * **Shareholder Returns:** Dividend increased to **35% (₹1.75/share)** for FY24, up from **25%** in FY23. --- ### VI. Risk Factors & Critical Monitorables Investors should note several legal and operational headwinds that could impact future valuations. * **Legal Contingencies (PMLA/CBI):** The company is involved in litigation regarding a **₹101 crore** advance from **Shreem Corporation**. While TRML deposited the amount with a Resolution Professional in **December 2023**, an **ED Prosecution Complaint** under the **PMLA** and a **CBI supplementary charge sheet** remain active. * **Leverage & Coverage:** Net leverage (Net Debt/EBITDA) rose to **4.91x** in FY25. Interest coverage is projected to drop below **2.0x** in the FY26–28 period due to increased borrowing for asset upgrades and legal settlements. * **Concentration & Renewal Risk:** High reliance on the Dadar asset. A major lease renewal is scheduled for **FY27**; failure to roll over this contract could disrupt the LRD waterfall mechanism. * **Operational Volatility:** The textile segment remains sensitive to global commodity prices (cotton, coal) and potential recessionary shifts in consumer demand.