• Import duty relief: The government's waiver of the 11% import duty on cotton is expected to lower raw material costs, boost demand, and expand cotton yarn margins by 1% to 1.5% (potentially up to 2%) in the short term.
• Topline guidance: FY27 revenue is guided at ₹5,600 to ₹5,700 crore following the full commissioning of the Punjab polyester filament yarn facility by the end of March, recovering from earlier delays that kept reported revenue at around ₹3,800 crore.
• Capacity expansion: The fully commissioned Phase 1 Punjab facility (₹2,100 to ₹2,200 crore capex) is expected to add ₹3,000 crore in revenue, while an upcoming ₹400 crore greenfield project in Madhya Pradesh will add 75,000 cotton spindles by FY28.
• Debt and funding: Net debt has peaked at approximately ₹1,300 crore, with upcoming expansion plans to be funded entirely via internal accruals and cash flows from the Silvassa plant.
• Export strategy: Management strategically reduced export revenue share from close to 20% down to 5%–7% due to geopolitical tensions in West Asia and stronger margins in the domestic market.