Nitin Spinners' work-in-progress reaches Rs 915.2 crore

Nitin Spinners Limited reported capital work-in-progress of Rs 915.2 crore at Sept-26, compared with Rs 102.4 crore at Mar-26, as its disclosed yarn and woven-fabric projects moved towards commissioning. Nitin Spinners recorded Rs 811.5 crore of net investing outflow and Rs 599.4 crore of net financing inflow in the Sept-26 period.

How much did Nitin Spinners' capital work-in-progress increase?

Nitin Spinners' capital work-in-progress increased by Rs 812.8 crore to Rs 915.2 crore at Sept-26 from Rs 102.4 crore at Mar-26. Non-current assets rose by Rs 736.8 crore to Rs 2,505.0 crore over the same period, while total assets increased by Rs 826.4 crore to Rs 3,741.0 crore.

Property, plant and equipment fell by Rs 50.6 crore to Rs 1,438.5 crore while capital work-in-progress rose, showing that the balance-sheet increase was concentrated in assets not yet classified as completed property, plant and equipment. The presentation describes the yarn and woven-fabric projects as being in an advanced stage of commissioning, with partial trial production already started.

Nitin Spinners expects full commissioning by the end of December 2026. Its roadmap shows annual finished woven-fabric capacity increasing to 71 million metres in FY28e from 36 million metres in FY26, including a 35-million-metre annual brownfield expansion that had not commenced commercial production at the time of the presentation.

How did Nitin Spinners fund the expansion?

Nitin Spinners reported Rs 599.4 crore of net cash from financing activities in Sept-26, compared with a Rs 303.3 crore net financing outflow in Sept-25. The financing inflow coincided with net cash used in investing activities of Rs 811.5 crore, compared with Rs 84.1 crore a year earlier.

Non-current borrowings rose by Rs 638.1 crore to Rs 1,183.3 crore at Sept-26 from Rs 545.2 crore at Mar-26. Current borrowings increased by Rs 17.5 crore to Rs 596.8 crore, taking the combined total of the two disclosed borrowing lines to Rs 1,780.1 crore from Rs 1,124.5 crore.

Management says capital expenditure is funded through internal accruals and term debt. The cash-flow statement does not split financing activities into specific debt drawdowns, repayments or other funding items, but the Rs 638.1 crore rise in non-current borrowings occurred during the same period as the Rs 599.4 crore financing inflow.

Equity rose to Rs 1,621.5 crore at Sept-26 from Rs 1,470.7 crore at Mar-26, led by other equity, which increased to Rs 1,565.3 crore from Rs 1,414.5 crore. The presentation does not separately explain the components of that Rs 150.8 crore increase in total equity.

Did Nitin Spinners' operating cash cover investment outflow?

No, Nitin Spinners generated Rs 209.3 crore of net cash from operating activities in Sept-26, below its Rs 811.5 crore net investing outflow. The difference between the two reported cash-flow lines was Rs 602.2 crore, alongside the Rs 599.4 crore financing inflow.

Operating cash flow declined from Rs 380.3 crore in Sept-25 despite operating profit before working-capital changes increasing to Rs 334.2 crore from Rs 215.7 crore. Working capital consumed Rs 88.1 crore in Sept-26 after contributing Rs 189.2 crore in Sept-25, accounting for the change in cash conversion between the periods.

Cash generated from operations before taxes was Rs 246.0 crore in Sept-26, down from Rs 404.9 crore in Sept-25. Direct taxes paid, net of refunds, rose to Rs 36.8 crore from Rs 24.6 crore, resulting in the reported Rs 209.3 crore of net operating cash.

The net change in cash and cash equivalents was a Rs 2.9 crore decrease in Sept-26, compared with a Rs 7.04 crore decrease in Sept-25. Cash and cash equivalents on the balance sheet were Rs 10 lakh at Sept-26, while bank balances other than cash equivalents were Rs 8.3 crore.

What capacity projects are behind Nitin Spinners' spending?

Nitin Spinners links the programme to 22,400 metric tonnes per annum of new spinning capacity and 35 million metres per annum of finished woven-fabric capacity. Management says about 60% of the new spinning capacity will feed in-house fabric manufacturing, connecting the yarn addition with the fabric expansion.

The company reported 4.1 million metres of trial production of griege woven fabric in both Q2 FY27 and H1 FY27. It said this output was part of the brownfield expansion and that commercial production had not yet commenced.

Griege woven-fabric production increased to 19.21 million metres in H1 FY27 from 17.83 million metres in H1 FY26. Finished-fabric production was broadly unchanged at 16.04 million metres from 16.08 million metres, while woven-fabric sales volume increased to 20.82 million metres from 16.76 million metres.

Management projects annual yarn capacity of 132 thousand tonnes in FY28e, compared with 110 thousand tonnes in FY26, and says fabric could account for about 30% of revenue by FY28. Fabrics contributed Rs 397.5 crore, or 21.4%, of Rs 1,860.2 crore H1 FY27 revenue; the presentation also says the projects are eligible for interest subsidy, capital subsidy and electricity-duty benefits under Rajasthan Investment Promotion Scheme 2024, without quantifying the benefits.

Conclusion

Nitin Spinners' Sept-26 statements show the financial scale of its expansion: capital work-in-progress increased by Rs 812.8 crore, total assets rose by Rs 826.4 crore and combined borrowings increased by Rs 655.6 crore from Mar-26. Operating cash generation remained positive at Rs 209.3 crore, but the Rs 811.5 crore investing outflow was substantially higher and was accompanied by financing inflows.

The next disclosed milestone is full commissioning by the end of December 2026, after partial trial production. The subsequent measures to watch are commercial production from the 35-million-metre woven-fabric expansion, progress towards 132 thousand tonnes of annual yarn capacity in FY28e, and movement in fabric's share of revenue towards management's approximately 30% FY28 target.