Himatsingka Seide LimitedTextilesHIMATSEIDE
Q1 FY27 concall · earnings callHimatsingka Seide Limited
Himatsingka is transitioning its business model to diversify away from U.S.-concentrated home textiles into Yarn, Fabric, and Apparel Solutions, which involves rightsizing the existing home textiles division and is expected to cause near-term volatility in numbers.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Total Income | ₹634 Cr | — | |
| Consolidated EBITDA | ₹101 Cr | — | |
| EBITDA Margin | 16% | — | |
| Overall Capacity Utilization | 99% | — | |
| Sheeting Division Utilization | 52% | — | |
| Terry Division Utilization | 63% | — | |
| Total Debt Leverage | ₹2,550 Cr | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹691.50 Cr-4.4% YoY-0.4% QoQ | ₹21.84 Cr-29.9% YoY+0.6% QoQ | ₹1.74-45.1% YoY-20.9% QoQ |
| Q2 FY25 | ₹694.33 Cr-6.1% YoY-5.6% QoQ | ₹21.70 Cr-24.6% YoY+5.5% QoQ | ₹2.20-24.7% YoY+5.3% QoQ |
| Q1 FY25 | ₹735.46 Cr+7.8% YoY+5.5% QoQ | ₹20.56 Cr-29.5% YoY-13.4% QoQ | ₹2.09-29.4% YoY-13.3% QoQ |
| Q4 FY24 | ₹696.87 Cr+1% YoY-3.7% QoQ | ₹23.74 Cr+6.2% YoY-23.8% QoQ | ₹2.41+6.2% YoY-24% QoQ |
| Q3 FY24 | ₹723.31 Cr-1.8% YoY-2.1% QoQ | ₹31.16 Cr+1316.4% YoY+8.3% QoQ | ₹3.17+1340.9% YoY+8.6% QoQ |
TL;DR
- Consolidated total income was INR634 crores, down from INR661 crores, impacted by geopolitical issues in the Middle East and lower capacity utilization.
- EBITDA margin was about 16%, driven by lower revenues, product mix tweaks, and raw material inflation.
- Capacity utilization was 99% at facilities, with Sheeting at 52% and Terry at 63%.
- The company is launching three new verticals: Yarn Solutions, Fabric Solutions, and Apparel Solutions, to diversify revenue and reduce market concentration.
- Total debt leverage remained range bound at about INR2,550 crores.
Said on the call
“Himatsingka will be a transformed business model in a year or so, and I'm looking forward to that.”
From the Q&A
| Topic | What management said |
|---|---|
| Business Model Transition and Revenue | Management stated the transition to new verticals (Yarn, Fabric, Apparel) will cause some volatility and rightsizing of the Home Textile (Sheeting) division, but they aim to keep overall revenues range-bound with new streams compensating. |
| Capacity and Revenue Targets for New Verticals | The Yarn Solutions and Fabric Solutions verticals are expected to generate about INR1,000 crores each at full capacity. The combined fabric processing capacity is about 90 million meters. |
| Capex and Fundraising | Capex is limited to maintenance and organic requirements; no expansion is needed for the transition. Recent NCD fundraising was for debt tenor balancing, and a net debt reduction is expected by the end of the fiscal. |
| U.S. Tariffs and FTAs | U.S. tariff impacts have stabilized but created pricing challenges. FTAs with the U.K. and EU are still under process and should offer medium-term opportunities, but India is expected to become a top jurisdiction for the company. |
| External Yarn Sales | Over 90% of Yarn Solutions capacity will be sold externally, as the company currently buys yarn and wants the business to chart its own growth. |
Guidance
- Focus for the next couple of quarters is on transition, with expected volatility in numbers.
- Net debt is expected to reduce by the end of the fiscal.
- India is expected to become one of the top two revenue jurisdictions for the company in the medium term.
- New verticals (Yarn and Fabric Solutions) are nascent and will be ramped up through the year.
Source
Summary written from the transcript filed by Himatsingka Seide Limited for the call held on 13 Aug 2026; published 18 Aug 2026, 20:11 IST.
More Q1 FY27 concalls ·How verification works ·Report an error