Shiva Texyarn Limited

Shiva Texyarn Limited, for the financial year ended March 31, 2026 (FY2025-26), is engaged in the manufacturing of cotton yarn, primarily for the hosiery segment, with a growing focus on finer counts. The company also operates a technical textiles division, offering coated and laminated fabrics and garments for B2B and B2C markets, including home textiles, digital imaging, mattress protection, defence, medical, and allied sectors. Additionally, its Garments Division manufactures high value-added military products and provides contract manufacturing for global brands. The company serves customers in India and internationally, with a significant domestic presence.

Key facts (FY2025-26)

• Promoter holding: 74.04% of equity shares.
• Spinning capacity: 52,416 spindles near Coimbatore.
• Power generation: 13.195 MW installed wind power capacity, fully consumed captively, with an additional 4 MW DC solar power agreement.
• Market position: Operates one of the country's largest coating and lamination capacities in its Technical Division.
• Geographical Revenue Mix: Domestic sales accounted for approximately 96.3% (₹32,795.47 Lakhs) of total sales, with export sales at about 1.6% (₹542.81 Lakhs).
• Associate Company: L K Distributors Private Limited, engaged in wind power generation, with a 26.00% holding.

Recent developments (from AR FY2025-26)

• Strategy: Continuing efforts to widen the product mix in the technical textile segment and shifting focus towards finer yarn counts.
• Capex & Modernization: Investing in non-conventional energy sources like solar power and replacing inefficient spindles with state-of-the-art machinery to reduce operational costs and improve quality.
• Defence Orders: Secured significant orders from the Government of India, Ministry of Defence, for 15,000 sets of Extreme Cold Weather Clothing System (ECWCS) to be supplied by June 2026, with an additional order of 24,585 sets for FY2026-27.
• Technology Absorption: Absorbed technology from Defence Research & Development Organization (DRDO) for products like Activated Carbon Spheres (ACS) for NBC Protective Suits, ECWCS, and Ergonomically Designed Rucksacks.
• Management Outlook: The management maintains an optimistic outlook for the Indian Textile Industry, supported by various government initiatives.

Key risks flagged by management (FY2025-26)

• Fluctuations in raw material costs, particularly for cotton.
• High cost of power and other inputs.
• Availability of quality cotton and skilled labor.
• Impact of global events (e.g., US-Iran war, spiraling oil prices, supply-chain issues) on the business environment.

Pros (FY2025-26)

• Diversified business model spanning traditional yarn, advanced technical textiles (including defence applications), and garment manufacturing.
• Strategic focus on high-value technical textiles and modernization efforts aims to improve efficiency and product quality.
• Significant captive power generation from wind energy (13.195 MW) and planned solar power addition (4 MW DC) contributes to energy independence.

Cons (FY2025-26)

• Profitability ratios, including Net Profit Ratio (2.86% vs 3.65% in FY2024-25) and Return on Net Worth (6.74% vs 8.72% in FY2024-25), declined compared to the previous financial year.
• High reliance on cotton exposes the company to volatility in raw material prices.
• The textile industry is susceptible to challenges from high input costs and potential shifts in demand towards man-made fibers.