Shree Ram Twistex Limited is engaged in manufacturing of cotton yarn used in the textile industry. The company produces various yarn counts for weaving and knitting applications. It earns revenue from domestic sales to textile manufacturers. For FY25, it reported revenue from operations of ₹25,504.47 lakh with EBITDA of ₹2,185.26 lakh . Its installed capacity is 9,855 metric tonnes per annum with 87% utilization .

Key Clients & Manufacturing Facilities
The company caters to 45 customers as of September 30, 2025 . It operates a manufacturing facility in Gondal, Gujarat, equipped with imported machinery. The plant was commissioned in 2016 and later expanded in 2020 by adding 6 spinning machines, increasing capacity from 5,500 MT per annum to 9,855 MT per annum . The facility supports compact ring spinning operations.

Product Portfolio & Order Book
The company manufactures various cotton yarn counts used in garments, fabrics, and textile processing. Yarn forms the base raw material in the textile value chain and directly impacts product quality and durability. Capacity utilization stood at 87% in FY25 , reflecting strong demand execution. Revenue growth from ₹21,314.05 lakh in FY23 to ₹25,504.47 lakh in FY25 indicates steady order execution .

Merger, Capex & Expansion Plans
The company converted from private to public limited in September 2024 . IPO proceeds include funding of working capital and expansion. The company plans to allocate ₹2,945 lakh in FY26 and ₹4,400 lakh in FY27 from IPO funds towards growth and capital requirements . Expansion is aimed at increasing operational scale and improving working capital efficiency.

Employees & Banker
November 30, 2025, the company had 58, full time employees. The Banker to the Company is State Bank of India.

Management & Vision

The management has focused on steady expansion of spinning capacity, demonstrated by expansion in 2020 which increased production capacity to 9,855 MT per annum .

Their growth strategy includes:

• Improving capacity utilization (currently 87%)
• Expanding working capital base
• Funding growth through IPO proceeds and internal accruals

Net worth increased from ₹6,679.86 lakh in FY23 to ₹7,403.26 lakh in FY25 , showing strengthening financial position. Management plans to fund capex through IPO proceeds and internal cash accruals .

Long-term vision includes improving EBITDA margin (8.57% in FY25 vs 8.16% in FY23) and maintaining healthy ROE (11.36% in FY25) .

Industry Overview

The company operates in the Indian textile and cotton yarn industry.

India ranks as the 6th largest exporter of textiles globally, contributing 8.21% of total exports in 2023–24 . India holds 3.91% share in global textile trade .

Global demand is driven by USA and EU, accounting for 47% of India’s textile exports .

Major listed players include Ambika Cotton Mills, Damodar Industries, and Rajapalayam Mills .

Industry growth is supported by:

• Rising global apparel demand
• Government textile incentives
• Growing domestic consumption

Cotton yarn remains a key raw material in the textile value chain, making spinning companies critical to industry growth.

Major Risk Factors

1. Raw Material Price Volatility
   Raw cotton accounts for nearly 88% of revenue cost . Any fluctuation in cotton prices directly impacts margins and profitability.
2. Working Capital Intensive Business
   The company maintains 30 days raw material holding . High working capital requirement can impact liquidity.
3. Debt Exposure
   Total borrowings stood at ₹6,248.10 lakh in FY25 . High leverage can pressure cash flows.
4. Customer Concentration Risk
   The company serves 45 customers . Loss of major customers may affect revenue.
5. GST Litigations
   Contingent liabilities of ₹50.57 lakh exist due to tax matters , which may impact financials.
6. Industry Cyclicality
   Textile demand depends on global consumption trends and export markets.
7. Dividend Uncertainty
   The company has not declared dividends in recent years , affecting income-seeking investors.

Key Strengths & Opportunities

1. High Capacity Utilization
   Utilization at 87% in FY25 indicates strong demand and operational efficiency.
2. Revenue Growth Trend
   Revenue increased from ₹21,314.05 lakh (FY23) to ₹25,504.47 lakh (FY25) , reflecting growth momentum.
3. Improving Profitability
   PAT rose to ₹799.59 lakh in FY25 from ₹655.25 lakh in FY24 , showing improving margins.
4. Strong ROE & ROCE
   ROE at 11.36% and ROCE at 13.37% in FY25 indicate efficient capital utilization.
5. Expansion Through IPO
   Planned IPO funding of ₹2,945 lakh (FY26) and ₹4,400 lakh (FY27) supports scale expansion.
6. Strategic Location
   Manufacturing unit in Gujarat provides access to cotton supply and textile clusters.
7. Industry Tailwinds
   India’s growing share in global textile exports provides long-term demand support.