Nahar Spinning Mills Limited, incorporated as a Private Limited Company in December 1980 and becoming a Public Limited Company in 1983, is a prominent part of the Nahar Group. The Company is primarily engaged in the business of manufacturing cotton yarn, blended and synthetic yarn, and hosiery knitwears. It stands as one of India's largest cotton yarn manufacturers and a significant exporter of knitted garments.
The company has established itself as a significant player in the textile industry with integrated operations spanning yarn manufacturing to garment production. Its units are strategically located in Ludhiana, Punjab, and Simrai, Mandideep, Madhya Pradesh. It also boasts its own modern dyeing unit in Ludhiana. In 1995, the company embarked on a backward integration strategy by setting up an Acrylic Fibre Project with 18,000 tons capacity, further solidifying its manufacturing base.
Nahar Spinning Mills has consistently invested in modernizing and expanding its production capabilities. In 2024, the company's spindlage capacity was significantly increased to 573,408 spindles, 1080 rotors, and 768 Airjet Spindles. This expansion included the installation of 8 Vortex machines with 96 positions each, which are now operational, enhancing operational efficiency and output.
The company operates multiple manufacturing facilities across strategic locations. A key infrastructure development includes a Mercerising-cum-Dyeing Plant at Village Lalru, Distt. Patiala, Punjab. The first phase of this plant commenced commercial production on September 15, 2000, and with the completion of the second phase, the installed capacity of the unit now stands increased to approximately 4500 Kg per day.
Based on the latest available financial data, Nahar Spinning Mills has shown mixed performance, reflecting the broader challenges in the textile industry, alongside strategic efforts to improve profitability.
- Q3 FY2025 (December 2024):
- Net profit reported at ₹0.76 crore (compared to a net loss of ₹15.21 crore in Q3 FY2024).
- Sales rose 7.16% to ₹812.17 crore (compared to ₹757.87 crore in Q3 FY2024).
- Q2 FY2025 (September 2024):
- Net Loss reported at ₹17.46 crore (compared to a net loss of ₹18.00 crore in Q2 FY2024).
- Sales rose 6.61% to ₹775.92 crore (compared to ₹727.82 crore in Q2 FY2024).
- Q1 FY2025 (June 2024):
- Net profit reported at ₹6.64 crore (compared to a net loss of ₹17.51 crore in Q1 FY2024).
- Sales rose 9.61% to ₹820.88 crore (compared to ₹748.90 crore in Q1 FY2024).
- Revenue: ₹3,224 Crore
- Profit: -₹10.4 Crore
- The company has delivered a modest sales growth of 5.76% over the past five years.
- Market Capitalization: ₹985 Crore
- 52-Week High Share Price: ₹383.40
- 52-Week Low Share Price: ₹184.90
- Current Dividend Yield: 0.47%
- Return on Equity (ROE): 13.1% over the last 3 years (considered low).
- Promoter Holding: Increased to 67.43% as of March 2025 from 67.07% as of June 2024, indicating stable promoter confidence.
The textile industry has faced significant headwinds in recent years, particularly impacting cotton yarn manufacturers. Operating profitability is projected to moderate to 5-6% in FY2024, a notable decrease from approximately 9% in FY2023. This trend was evident in Q1 FY2024, where the EBIDTA margin sharply declined to 1.4% due to moderation in cotton yarn prices, leading to lower realizations and inventory losses.
The company is also characterized by a low interest coverage ratio, and its sales growth over the past five years has been relatively subdued at 5.76%. Despite these challenges, Nahar Spinning Mills continues to invest in capacity expansion and modernization efforts aimed at improving operational efficiency and navigating the volatile market landscape.
Nahar Spinning Mills Ltd, incorporated in 1980, maintains a robust corporate governance framework. Its registered office is located at 373 Industrial Area A, Nahar Tower, Ludhiana, Punjab, 141003. The company's operations are primarily within the Textiles - Cotton/Blended industry. Gupta Vigg & Co. serves as the auditor.
The company maintains a strong board structure with independent directors to ensure proper corporate governance practices. Notably, CRISIL has reaffirmed its ratings for Nahar Spinning Mills Limited at 'CRISIL A- / CRISIL A2+ ', with the outlook revised to 'Stable', reflecting confidence in the company's financial discipline and management.
Nahar Spinning Mills continues to navigate through challenging market conditions while focusing on operational improvements and capacity expansion to maintain its position as a leading player in the Indian textile industry.
