Nitin Spinners Limited Q2 profit rises 155% as margin expands

Nitin Spinners Limited reported Q2FY27 profit after tax of Rs 88.7 crore, up 154.9% year on year, as revenue reached Rs 985.2 crore and EBITDA margin rose 471 basis points to 17.81%. Management attributed the margin expansion to higher yarn realisations, optimum capacity utilisation and ongoing cost-saving measures.

What were Nitin Spinners’ Q2FY27 earnings results?

Nitin Spinners recorded its highest quarterly revenue, exports and fabric revenue in Q2FY27, according to management. Revenue increased 29.6% to Rs 985.2 crore from Rs 760.1 crore in Q2FY26, while earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 76.3% to Rs 175.5 crore from Rs 99.6 crore.

Profit after tax, or PAT, rose 154.9% to Rs 88.7 crore in Q2FY27 from Rs 34.8 crore a year earlier. Profit before tax increased to Rs 119.0 crore from Rs 46.9 crore, despite depreciation rising to Rs 38.2 crore from Rs 37.3 crore and finance cost increasing to Rs 19.9 crore from Rs 16.1 crore.

The increase extended to per-share earnings and net profitability. Earnings per share rose to Rs 15.77 in Q2FY27 from Rs 6.19 in Q2FY26, while PAT margin increased by 442 basis points to 9.00% from 4.58%; one basis point equals one-hundredth of a percentage point.

Why did Nitin Spinners’ EBITDA margin increase in Q2FY27?

Nitin Spinners said its Q2FY27 EBITDA margin rose because of higher yarn realisations, optimum capacity utilisation and ongoing cost-saving measures. EBITDA margin reached 17.81%, compared with 13.10% in Q2FY26, a 471-basis-point or 4.71-percentage-point increase.

The underlying quarterly growth rates show EBITDA rising faster than revenue. EBITDA increased by Rs 75.9 crore, or 76.3%, against a Rs 225.1 crore, or 29.6%, increase in revenue, under the operational factors cited by management. Management also linked improved export demand to exports representing 68.0% of Q2FY27 revenue, up from 61.0% a year earlier.

The first-half comparison showed a similar pattern, although the margin increase was smaller than in the quarter. H1FY27 EBITDA grew 57.0% to Rs 331.1 crore on revenue growth of 19.8% to Rs 1,860.2 crore, and EBITDA margin increased 423 basis points to 17.80% from 13.57% in H1FY26.

H1FY27 PAT increased 116.4% to Rs 163.9 crore from Rs 75.8 crore in H1FY26. PAT margin reached 8.81%, compared with 4.88%, while earnings per share rose to Rs 29.16 from Rs 13.48 over the same periods.

How did Nitin Spinners’ product and export mix change?

Nitin Spinners remained primarily a yarn business in Q2FY27, with yarn generating Rs 728.8 crore, or 74.0%, of revenue. That compared with Rs 555.8 crore, or 73.1%, in Q2FY26, meaning yarn revenue increased Rs 173.0 crore while its revenue share increased 0.9 percentage points.

Fabric revenue rose to Rs 208.8 crore in Q2FY27 from Rs 164.5 crore a year earlier, and management described this as the company’s highest-ever quarterly fabric revenue. Fabric’s contribution eased to 21.2% from 21.6%, while other revenue increased to Rs 47.6 crore from Rs 39.8 crore and represented 4.8% of revenue.

Exports accounted for most of the quarter’s revenue increase. Export revenue rose Rs 206.7 crore to Rs 670.0 crore, whereas domestic revenue increased Rs 18.3 crore to Rs 315.1 crore. In H1FY27, exports were Rs 1,240.3 crore, or 66.7% of revenue, compared with Rs 954.9 crore, or 61.5%, in H1FY26.

The product mix was comparatively stable over the first half. Yarn represented 73.2% of H1FY27 revenue of Rs 1,860.2 crore, unchanged from H1FY26, while fabrics represented 21.4%, down from 21.6%; other revenue rose to Rs 100.4 crore from Rs 80.8 crore.

What do Nitin Spinners’ production and sales volumes show?

Nitin Spinners produced 27,117 metric tonnes of yarn in Q2FY27, compared with 26,346 metric tonnes in Q2FY26, while yarn sales increased to 21,861 metric tonnes from 21,371 metric tonnes. The company said more yarn is now being used for in-house fabric manufacturing.

Woven-fabric sales increased to 11.80 million metres in Q2FY27 from 8.34 million metres a year earlier. Greige woven-fabric production rose to 9.69 million metres from 9.11 million metres, whereas finished-fabric production was 7.92 million metres, compared with 8.01 million metres.

Nitin Spinners began trial production of 4.1 million metres of greige woven fabric during Q2FY27. The company identified that trial output as part of its brownfield expansion of 35 million metres per year, which had not yet commenced commercial production.

The H1FY27 volume pattern differed between yarn and fabric. Yarn production was nearly unchanged at 53,651 metric tonnes against 53,548 metric tonnes in H1FY26, but yarn sales declined to 42,846 metric tonnes from 44,140 metric tonnes; woven-fabric sales rose to 20.82 million metres from 16.76 million metres.

What should readers watch after Nitin Spinners’ Q2FY27 results?

Nitin Spinners’ capacity plan coincided with higher investment and borrowings at September 2026. Capital work in progress was Rs 915.2 crore, compared with Rs 102.4 crore at March 2026, while non-current borrowings increased to Rs 1,183.3 crore from Rs 545.2 crore.

Cash-flow data show the scale of the investment period. Net cash used in investing activities was Rs 811.5 crore for the period ended September 2026, compared with Rs 84.1 crore in the period ended September 2025, while net cash from financing activities was Rs 599.4 crore against an outflow of Rs 303.3 crore.

Management said the new weaving and finishing capacities should enable a larger share of yarn to be consumed in-house as they ramp up, adding value to the portfolio and supporting its margin profile. Its outlook also referred to favourable trade policies, an expanding presence in value-added fabrics, a diversified export footprint and a growing renewable-energy share in its energy mix.

Conclusion

Nitin Spinners translated 29.6% Q2FY27 revenue growth into EBITDA growth of 76.3% and PAT growth of 154.9%, with EBITDA margin reaching 17.81% and PAT margin reaching 9.00%. The quarter also included a higher export share of 68.0%, fabric revenue of Rs 208.8 crore and woven-fabric sales of 11.80 million metres.

The next disclosed milestone is commercial production and ramp-up of the 35-million-metres-per-year brownfield greige woven-fabric expansion, following 4.1 million metres of trial output in Q2FY27. The presentation also leaves investors to track the effects of Rs 915.2 crore of capital work in progress and Rs 1,183.3 crore of non-current borrowings at September 2026 as the capacity plan proceeds.