Suryalata Spinning Mills Ltd (SURYALA)
🎯 Key Takeaways
- Suryalata Spinning Mills Ltd operates in the textiles sector with a market cap of ₹163 crore, trading at a low P/E of 4.6 and healthy ROE of 13.
- Revenue grew 18.5% QoQ to ₹124 in Q1FY27.
- ⚠️ 1) Persistent margin pressure evident from OPM declining from 13.2% in Mar 2026 to 4.2% in Dec 2025 and 7.4% in Jun 2026, despite stable revenue, indi
📖 The Story
Suryalata Spinning Mills Ltd operates in the textiles sector with a market cap of ₹163 crore, trading at a low P/E of 4.6 and healthy ROE of 13.5%. The company shows strong ROCE of 15.4% and conservative leverage at D/E of 0.26, supported by consistent promoter holding at 70.36%. Recent financial trends indicate revenue stabilization around ₹125 crore quarter-on-quarter, though operating performance has shown volatility with margins compressing in recent quarters.
📰 What's Happening
In the latest regulatory filing dated 2026-09-01, the company disclosed the completion of Independent Director Harishchandra Prasad Kanuri's first term, effective 26 August 2026, as per SEBI Listing Obligations and Disclosure Requirements Regulation 30. This personnel change reflects routine governance updates rather than strategic shifts. Quarterly results show sequential revenue holding near ₹125 crore levels, with operating performance fluctuating between ₹5-14 crore in operating profit across recent quarters.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 127 | 126 | 105 | 124 |
| Operating Profit | 7 | 5 | 14 | 9 |
| OPM % | 5.8% | 4.2% | 13.2% | 7.4% |
| Net Profit | 5 | 14 | 11 | 6 |
| EPS | ₹12.42 | ₹31.65 | ₹25.35 | ₹13.82 |
Operating performance has shown mixed trends over the last four quarters, with operating profit declining from ₹14 crore in Mar 2026 to ₹5 crore in Sep 2025, while revenue remained relatively stable near ₹125-127 crore. Net profit and EPS peaked in Dec 2025 at ₹14 crore and ₹31.65 respectively, followed by a sharp decline to ₹5 crore and ₹13.82 EPS in Jun 2026. This volatility suggests operational pressures despite stable top-line figures, though margins peaked at 13.2% in the March 2026 quarter before compressing.
🔮 Management Outlook & What's Next
The provided filing content does not include explicit forward guidance or future projections from management. No strategic roadmap, capacity expansion plans, or demand outlook statements were disclosed in the available regulatory documents. The company's disclosures remain focused on routine governance matters rather than future business expectations or capital allocation frameworks.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 4 | 4 | 4 | 4 |
| Reserves | 247 | 259 | 270 | 294 |
| Borrowings | 81 | 69 | 49 | 85 |
| Total Liabilities | 381 | 380 | 374 | 442 |
| Fixed Assets | 303 | 292 | 285 | 309 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 381 | 380 | 374 | 442 |
The balance sheet shows a stable capital structure with equity and reserves growing from ₹259 crore to ₹294 crore over two years, while net borrowings increased from ₹69 crore to ₹85 crore. Total assets rose from ₹380 crore to ₹442 crore, indicating asset base expansion. Despite the increase in borrowings, leverage remains low at D/E of 0.26, suggesting conservative capital structure management with room for strategic investment if opportunities arise.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +29 |
| Investing | +8 |
| Financing | -38 |
| Net Cash Flow | +0 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 70.4% | 70.4% | 70.4% | 70.4% |
| FII | 0.0% | 0.0% | 0.0% | 0.0% |
| DII | 0.0% | 0.0% | 0.0% | 0.0% |
| Public | 25.8% | 25.8% | 25.6% | 25.1% |
| # Shareholders | 5,597 | 5,396 | 5,232 | 5,055 |
Promoter holding remains stable at 70.36% across all recent quarters, indicating no dilution or stake sale activity. Institutional ownership is negligible with FII at 0% and DII holding only 0.02% consistently over the past year. The shareholder base has slightly contracted with public holding declining from 25.83% to 25.06% and total shareholders decreasing from 5,597 to 5,055, suggesting limited retail participation and potential liquidity constraints.
⚖️ Peer Comparison — Textiles
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| GRASIM | 2.25 L Cr | 39.4 | 9.6% | 10.8% | 2.16 |
| WELSPUNLIV | 18,716 | 65.0 | 7.4% | 5.9% | 0.51 |
| VTL | 17,438 | 20.2 | 10.7% | 8.7% | 0.13 |
| ARVIND | 15,168 | 35.3 | 14.3% | 10.6% | 0.36 |
| TRIDENT | 12,302 | 30.9 | 10.1% | 8.3% | 0.37 |
| SWANCORP | 9,065 | 43.5 | 4.2% | 2.9% | 0.29 |
| ICIL | 8,583 | 56.9 | 9.8% | 6.4% | 0.46 |
| GARFIBRES | 8,169 | 39.4 | 22.9% | 16.9% | 0.05 |
| KUSUMGAR | 5,944 | — | — | — | 0.45 |
| PDSL | 5,105 | 43.4 | 12.5% | 10.5% | 0.64 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Persistent margin pressure evident from OPM declining from 13.2% in Mar 2026 to 4.2% in Dec 2025 and 7.4% in Jun 2026, despite stable revenue, indicating cost structure challenges. 2) Minimal institutional interest with zero FII holding and negligible DII participation (0.02%) may limit liquidity and investor validation. 3) Heavy reliance on promoter control (70.36%) with limited public float (25.06%) creates concentration risk and potential governance concerns.
🧠 Analyst's Read
Suryalata Spinning Mills demonstrates a stable but stagnant business profile with consistent promoter backing and low leverage, yet faces margin compression and minimal institutional engagement. Investors should monitor operational improvements in the upcoming quarters to determine if the company can convert stable revenue into sustainable profitability, particularly given the absence of formal growth guidance from management.
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 2026-09-02.
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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