Nitin Spinners Ltd (NITINSPIN)

Textiles · Textiles · NSE · Updated 17 September 2026
By StockFin Research Team AI-Assisted Analysis Source: BSE/NSE Filings
₹627 ↑ 83.09% (1Y)

🎯 Key Takeaways

  • Nitin Spinners is in a phase of strategic expansion with strong execution momentum, transitioning from operational scale-up to sustainable profitability. Management is focused on capacity utilization, export growth, and margin discipline, supported by capex and renewable energy investments.
  • Revenue grew 1.8% QoQ to ₹875 in Q1FY27.
  • ⚠️ Execution risk in capex projects — delays or cost overruns in yarn/fabric capacity expansion or renewable energy rollout could impact margins and time
Market Cap
₹3,525
P/E Ratio
16.6
P/B Ratio
2.69
ROE
16.2%
ROCE
14.3%
Debt/Equity
0.89
Div Yield
0.48%
Promoter
56.7%

📖 The Story

Nitin Spinners is in a phase of strategic expansion with strong execution momentum, transitioning from operational scale-up to sustainable profitability. Management is focused on capacity utilization, export growth, and margin discipline, supported by capex and renewable energy investments. The company is positioned as a high-margin textile player with improving financial trends and institutional confidence.

📰 What's Happening

In Q1 FY27 (filed 2026-08-13), Nitin Spinners reported revenue of ₹875 crores (+10.3% YoY), EBITDA of ₹155.6 crores (+39.85% YoY), and PAT of ₹75.3 crores (+83.63% YoY), driven by 98% spinning capacity utilization and 35% export revenue share. EBITDA margin expanded 376 bps YoY to 17.78%, reflecting favorable cotton price parity and U.S. tariff benefits. Management highlighted sustained 17-18% margins for the next 1-2 quarters, with yarn capacity ramp-up targeted by March 31, 2026, and fabric capacity by FY28. Capex of INR1,100 crores is underway to support growth. The 34th AGM on September 21, 2026, will approve FY25-26 audited results, declare a final dividend of Rs 3/share, and reappoint Independent Director Rohit Swadheen Mehta until 2031. Capex of ₹230 crores is allocated for renewable energy expansion, targeting 97 MW capacity and 50% green energy mix by FY27.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

MetricSep 2025Dec 2025Mar 2026Jun 2026
Revenue760801860875
Operating Profit627494118
OPM %8.2%9.3%10.9%13.5%
Net Profit35445775
EPS₹6.19₹7.90₹10.20₹13.39

Revenue has grown sequentially from ₹760 crores (Sep 2025) to ₹875 crores (Jun 2026), with operating profit and net profit rising steadily from ₹35 crores to ₹75.3 crores over the same period. Operating margins improved from 8.2% to 13.5%, and net profit margins expanded significantly, supported by capacity utilization and export demand. The company is executing a multi-year capex plan to scale yarn and fabric capacity, with full utilization expected by March 2026 and FY28 respectively. This operational ramp-up is directly contributing to margin expansion and profitability, as reflected in the 83.63% YoY PAT growth in Q1 FY27.

🔮 Management Outlook & What's Next

Management expects EBITDA margins of 17-18% to be sustained over the next 1-2 quarters, supported by continued export demand, favorable raw material conditions, and full utilization of newly commissioned capacity. Yarn capacity is set to ramp up by March 31, 2026, with fabric capacity expansion targeted for completion by FY28. Capex of ₹1,100 crores is being deployed to support this growth, and renewable energy investments of ₹230 crores aim to achieve 97 MW capacity and 50% green energy mix by FY27. These initiatives are intended to drive scalable, margin-accretive growth in the coming quarters.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

ItemMar 2025Mar 2025Mar 2026Mar 2026
Equity Capital56565656
Reserves1,1611,2551,3131,415
Borrowings1,1801,1659151,124
Total Liabilities2,6522,7322,5372,915
Fixed Assets1,6471,5771,5061,489
Investments001717
Total Assets2,6522,7322,5372,915

The company's balance sheet shows a stable capital structure with total assets growing from ₹2,537 crores (Mar 2026) to ₹2,915 crores (Mar 2026), while equity and reserves increased to ₹1,415 crores from ₹1,313 crores. Borrowings rose to ₹1,124 crores from ₹915 crores, indicating active capital deployment for expansion. Despite higher borrowings, the debt-to-equity ratio remains moderate at 0.89, and the company maintains sufficient reserves to support ongoing capex without diluting equity. This suggests disciplined leverage usage focused on growth rather than financial distress.

💰 Cash Flow Statement (₹ Cr)

ItemMar 2025
Operating+307
Investing-22
Financing-279
Net Cash Flow+7

👥 Shareholding Pattern

CategoryQ2FY26Q3FY26Q4FY26Q1FY27
Promoters56.6%56.7%56.7%56.7%
FII0.9%0.9%1.1%1.9%
DII15.7%14.3%14.3%14.7%
Public21.6%22.5%22.4%21.4%
# Shareholders35,87635,36535,00231,698

Promoter holding remains steady at 56.71% over the last four quarters, indicating continued confidence in long-term prospects. FII ownership increased from 0.9% (Q2FY26) to 1.92% (Q1FY27), while DII rose from 14.34% to 14.68%, reflecting growing institutional interest. The number of shareholders expanded to 31,698 in Q1FY27 from 35,876 in Q2FY26, suggesting broader retail participation. Overall, the shareholding pattern shows accumulation by institutional investors and stable promoter stake, signaling strengthening investor confidence.

⚖️ Peer Comparison — Textiles

Company MCap (₹ Cr) P/E ROCE ROE D/E
GRASIM 2.17 L Cr 38.0 9.6% 10.8% 2.16
WELSPUNLIV 19,169 66.5 8.0% 5.8% 0.37
VTL 16,531 19.2 10.7% 8.7% 0.13
ARVIND 14,927 34.7 14.3% 10.6% 0.36
TRIDENT 11,807 29.7 10.1% 8.3% 0.37
SWANCORP 9,191 44.2 4.2% 2.9% 0.29
ICIL 8,565 56.8 9.8% 6.4% 0.46
GARFIBRES 7,813 37.7 22.9% 16.9% 0.05
KUSUMGAR 5,756 0.45
JINDWORLD 4,931 58.5 10.2% 9.8% 0.65

🔗 Peer Stock Analyses

⚠️ Risk Factors

1. Execution risk in capex projects — delays or cost overruns in yarn/fabric capacity expansion or renewable energy rollout could impact margins and timelines. 2. Export dependency — 35% of revenue comes from exports; any slowdown in global demand or trade barriers (e.g., U.S. tariffs) could pressure order intake. 3. Commodity volatility — Cotton price swings, despite current parity, remain a margin sensitivity not fully under management control. 4. Concentration in U.S. market — While not explicitly stated, export growth is likely U.S.-driven; geopolitical or trade policy shifts could affect this tailwind.

📋 Recent Filings

🧠 Analyst's Read

Nitin Spinners is executing a well-timed expansion with strong margin momentum, supported by capacity utilization, export growth, and disciplined capex. Investors should monitor the pace of yarn capacity ramp-up by March 2026 and the progress of renewable energy targets, as these will validate the sustainability of margins and returns. Watch for updates at the September 2026 AGM and next quarterly results for forward-looking guidance.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-17.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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