Fascinate Textiles lifts FY26 EBITDA margin to 20.6% as revenue rises

Fascinate Textiles Limited lifted its earnings before interest, tax, depreciation and amortisation (EBITDA) margin to 20.6% in FY26 from 6.4% in FY24, while revenue from operations increased more than fourfold to Rs 117.087 crore from Rs 28.88 crore. EBITDA rose to Rs 24.085 crore from Rs 1.858 crore over the two financial years.

How did Fascinate Textiles expand revenue and EBITDA through FY26?

Fascinate Textiles expanded revenue from operations from Rs 28.88 crore in FY24 to Rs 60.247 crore in FY25 and Rs 117.087 crore in FY26. That FY24-to-FY26 increase was Rs 88.207 crore, while FY26 revenue was about 4.1 times the FY24 level. The presentation’s historical income statement shows that the increase took place in each of the two annual comparisons, rather than being concentrated only in FY26.

EBITDA rose faster than revenue over the same period, increasing from Rs 1.858 crore in FY24 to Rs 10.199 crore in FY25 and Rs 24.085 crore in FY26. As a result, the EBITDA margin increased by 10.5 percentage points in FY25 and a further 3.7 percentage points in FY26. Earnings before interest and tax, or EBIT, reached Rs 23.64 crore in FY26, compared with Rs 1.574 crore in FY24.

The annual figures also show net profit growing from Rs 47.8 lakh in FY24 to Rs 5.811 crore in FY25 and Rs 15.097 crore in FY26. Profit after tax, or PAT, margin was 1.7% in FY24, 9.6% in FY25 and 12.9% in FY26 in the historical income statement. The improvement in PAT margin was smaller than the EBITDA-margin gain in FY26, when finance cost was Rs 2.296 crore and tax was Rs 6.248 crore.

Did Fascinate Textiles sustain its operating margin in H1 FY27?

Fascinate Textiles reported a 20.1% EBITDA margin in H1 FY27, which was 0.5 percentage points below FY26’s 20.6% but 13.7 percentage points above FY24’s 6.4%. Revenue from operations in the first half was Rs 77.247 crore and EBITDA was Rs 15.518 crore. These are six-month figures and are not directly equivalent to the full-year FY26 totals of Rs 117.087 crore revenue and Rs 24.085 crore EBITDA.

The H1 FY27 income statement reported EBIT of Rs 15.266 crore, or a 19.8% EBIT margin, after Rs 33.1 lakh of depreciation. Finance cost was Rs 1.863 crore, producing profit before tax of Rs 13.404 crore. After tax of Rs 4.051 crore, H1 FY27 PAT was Rs 9.353 crore and the stated PAT margin was 12.1%.

Compared with the corresponding annual FY26 margin measures, H1 FY27 recorded a lower EBITDA margin of 20.1% versus 20.6%, EBIT margin of 19.8% versus 20.2%, and PAT margin of 12.1% versus 12.9%. The presentation does not provide a full-year FY27 revenue, margin or profit target. It therefore shows the first-half result near the FY26 operating-margin level, without setting out management guidance for the remaining half.

What changed in Fascinate Textiles’ gross profit and operating costs?

Fascinate Textiles reported gross profit of Rs 9.65 crore in FY24, Rs 24.364 crore in FY25 and Rs 43.467 crore in FY26. Gross profit margin increased from 33.4% in FY24 to 40.4% in FY25 before declining to 37.1% in FY26. Thus, EBITDA margin continued to rise in FY26 even though the reported gross margin was 3.3 percentage points lower than in FY25.

Material consumed increased from Rs 19.23 crore in FY24 to Rs 35.884 crore in FY25 and Rs 73.62 crore in FY26. Employee expenses rose from Rs 1.711 crore to Rs 3.106 crore and then Rs 4.493 crore, while other expenses increased from Rs 6.081 crore to Rs 11.059 crore and Rs 14.889 crore. From FY24 to FY26, revenue grew by Rs 88.207 crore whereas the combined increase in employee and other expenses was Rs 11.59 crore.

In H1 FY27, gross profit was Rs 28.071 crore on material costs of Rs 49.175 crore, resulting in a 36.3% gross margin. Employee expenses were Rs 2.667 crore and other expenses were Rs 9.886 crore. These figures produced Rs 15.518 crore of EBITDA, compared with Rs 15.097 crore of full-year FY26 PAT, illustrating that EBITDA and PAT are different measures because the latter includes depreciation, finance cost and tax.

What balance-sheet and cash-flow issues accompany Fascinate Textiles’ profit growth?

Fascinate Textiles’ reported debt-to-equity ratio declined from 2.8 in FY24 to 1.7 in FY25, 0.8 in FY26 and 0.2 in H1 FY27. Total equity increased from Rs 4.454 crore at March 2024 to Rs 31.464 crore at March 2026 and Rs 87.537 crore at September 2026. In the same September 2026 balance sheet, long-term borrowings were Rs 8.2 crore and short-term borrowings were Rs 7.79 crore.

Working-capital balances also increased as revenue expanded. Inventory rose from Rs 12.703 crore at March 2024 to Rs 48.129 crore at March 2026 and Rs 57.83 crore at September 2026. Trade receivables increased from Rs 5.338 crore to Rs 35.277 crore and then Rs 39.264 crore over those dates. Current assets stood at Rs 119.034 crore at September 2026, including cash and bank balances of Rs 12.679 crore.

Despite reported PAT of Rs 15.097 crore in FY26, net cash from operating activities was negative Rs 10.874 crore that year after a negative Rs 32.991 crore change in working capital. The September 2026 cash-flow statement reported negative operating cash flow of Rs 15.18 crore and a negative Rs 24.548 crore working-capital change. Financing cash flow was Rs 34.827 crore in that September 2026 period, while investing cash flow was negative Rs 7.784 crore.

Conclusion

Fascinate Textiles’ reported FY24-to-FY26 record combines a rise in revenue from Rs 28.88 crore to Rs 117.087 crore with an EBITDA-margin increase from 6.4% to 20.6%. PAT rose from Rs 47.8 lakh to Rs 15.097 crore, while the H1 FY27 EBITDA margin of 20.1% remained close to the FY26 level.

The next disclosed issue to watch is cash conversion as working-capital use remained negative Rs 24.548 crore in the September 2026 cash-flow statement and net operating cash flow was negative Rs 15.18 crore. Inventory was Rs 57.83 crore and receivables were Rs 39.264 crore at September 2026, while the presentation provides no FY27 annual target against which to assess the second half.