1. New plant (spinning unit and garmenting division, ₹418 crore) - operations by July 2027 On track - In the February 2026 announcement, management guided that the new plant (backward integration of spinning unit and garmenting division, capex of ₹418 crore) will commence operations by July 2027. The horizon is July 2027, and our record holds no further progress disclosure as of the cut-off date.
2. Annual cash accrual - above ₹75 crore against yearly term debt obligation of ₹19 crore On track - In the February 2026 announcement, management guided annual cash accrual is expected above ₹75 crore against yearly term debt obligation of ₹19 crore over the medium term. FY26 PAT was ₹52.37 crore and depreciation ₹22.5 crore, yielding cash profit of \~₹74.87 crore, near the ₹75 crore guided level with interest coverage at 3.21x (SQL).
3. Capital structure improvement - gearing <1x, TOL/TNW <1.4x Partial - In the February 2026 announcement, management guided that with the fund raising, gearing and total outside liabilities to tangible networth ratio are projected at less than 1 time and less than 1.4 times, respectively. As of FY26, D/E was 0.98x (SQL), meeting the gearing target, but TOL/TNW is not directly readable in our record.
4. Fundraise - ₹261.5 crore via warrants and preference shares, receipt by July 2027 On track - In the February 2026 announcement, management guided that SSL issues warrants and preference shares of ₹261.5 crore to investors, to be infused by July 2027, with the balance ₹93.90 crore receivable within 18 months from allotment. As of May 2026, ₹116 crore was received initially and ₹53.02 crore from warrant allotment and conversion, with unutilised funds of ₹107.24 crore.
5. ₹420 crore spinning expansion - operational in \~12 months (by \~May 2027) On track - In the Q4 FY26 PPT, management guided that the proposed ₹420 crore spinning expansion (52,512 spindles, 5,000 rotors, 4,368 advanced material spindles) is expected to become operational in \~12 months. The horizon is \~May 2027, and our record holds no further progress disclosure as of the cut-off date.
6. FY26 revenue growth - 20-25% Delivered - In the February 2026 announcement, management guided revenue is expected to rise 20-25% in FY26, supported by commissioning of the cotton fabric division and ramp-up in denim fabrics. FY26 revenue was ₹576.74 crore, growth of 38.45% YoY, exceeding the 20-25% guided range.
7. Capacity target - 2.5 crore metres denim, 1.8 crore metres cotton annually Delivered - In the Q4 FY24 PPT, management guided the intention to acquire equipment to process approximately 2.5 crore metres of denim fabric and 1.8 crore metres of cotton annually, reiterated in Q2 FY25 PPT. As of Q4 FY26 PPT, manufacturing capacities stood at \~2.5 crore metres p.a. for denim and \~1.8 crore metres p.a. for cotton, confirming both targets installed.
8. Revenue CAGR - \~20% for 3-5 years On track - In the Q4 FY24 PPT, management guided a CAGR of \~20% for 3 to 5 years, reiterated in Q2 FY25 PPT. FY24 revenue was ₹319.59 crore, FY25 was ₹416.57 crore, and FY26 was ₹576.74 crore, yielding a two-year CAGR of \~34.3%, well above the 20% target with the 3-5 year window running to FY27-FY29 (SQL).
9. Brand revenue - 30-35% of revenue in three years (by FY27) Pending - At the Q4 FY24 call, management guided that in three years' time, they will have 30% to 35% of revenue from brands, implying FY27. The company works with brands like Spiker and Mufti domestically and is in talks with Walmart and Primark, but our record holds no disclosure of brand-segment revenue share for any period.
10. Total subsidies - ₹130-150 crore over project life Pending - At the Q4 FY24 call, management guided that total subsidies will be from ₹130 crore to ₹150 crore over the project life, with around ₹15-20 crore of subsidy per year. FY25 subsidies received were \~₹3 crore in H1, but our record holds no comprehensive cumulative subsidy tally to date.
11. Subsidies - ₹10-15 crore initial release in Q2 FY25 Missed - At the Q4 FY24 call, management guided that the initial first tranche of ₹10-15 crore of subsidies will be released in the next quarter, Q2 FY25. The company received subsidies of \~₹3 crore from central government in H1 FY25, and our record holds no disclosure of a ₹10-15 crore tranche in Q2 FY25.
12. Yarn expansion - 21 TPD capacity, commissioning October 2024 Partial - At the Q4 FY24 call, management guided that the yarn expansion will commence in October 2024, leading to a new capacity of 21 tonnes per day, later revised at Q2 FY25 to commissioning at the beginning of December 2024 due to a delay by LMW. The first spinning project at Neemuch Unit-2, with 22,656 spindles and installed capacity of \~20.1 TPD, was commissioned in March 2025, \~3-5 months late.
13. Denim, non-denim and weaving plants - commissioning June 2024 Partial - At the Q4 FY24 call, management guided that the new denim plant, non-denim plant, and weaving plant are estimated to commence in June 2024. The denim and weaving plants were commissioned in July 2024, \~1 month late, while the non-denim (cotton) plant commenced in October 2024, \~4 months late, with full commercial operations only from July 2025.
14. FY25 export revenue - 30-40% of revenue Missed - At the Q4 FY24 call, management guided they are targeting export sales of around 30-40% of revenue in FY25, later softened at Q2 FY25 to a conditional ₹100-150 crore depending on margins. FY25 export revenue was ₹22.54 crore, representing \~5.4% of FY25 revenue of ₹416.57 crore, against the 30-40% target.
15. FY25 margin improvement - +100 bps Delivered - At the Q4 FY24 call, management guided they target to improve the margin by 1% in FY25 from the then-current \~5.6%-5.7%. FY25 OPM was 17.58%, up from FY24 OPM of 12.43%, an improvement of 515 bps, exceeding the 100 bps target (SQL).
16. FY25 revenue target - ₹650-700 crore Missed - At the Q4 FY24 call, management guided a revenue target of ₹650-700 crore for FY25, later revised at Q2 FY25 to ₹600 crore with confidence in achieving it given full plant operations and order book. FY25 revenue was ₹416.57 crore, growth of 30.35% YoY, against the latest reiterated target of ₹600 crore.