Shreedhar Spinners Sets ₹45 Crore Capacity Plan for FY28

Q2 FY27 results meeting is scheduled

Shreedhar Spinners Limited is scheduled to hold a board meeting on October 27, 2026, to consider its financial results for the second quarter of FY27. The meeting comes after a series of capital and operating decisions made by the cotton yarn manufacturer during the year. These include a ₹45 crore capacity-expansion programme and shareholder approval for a preferential issue of warrants to promoters and promoter-group members. The upcoming results will provide the next reported financial update after the company recorded revenue growth and a higher profit in FY26. No Q2 FY27 financial figures were included in the available information before the board meeting.

₹45 crore investment for cotton yarn unit

On August 4, 2026, the board approved an investment of about ₹45 crore to expand cotton yarn manufacturing capacity. The project will add 2,000 metric tonnes per annum of capacity to the existing 10,000 MT per annum base. Once completed, the company’s annual capacity is expected to reach 12,000 MT, representing a 20% increase. Shreedhar Spinners said its facilities were operating at around 95% utilisation, which formed the basis for the proposed addition. The company plans to finance the project through a combination of internal accruals and debt.

Commissioning target is Q2 FY28

The company has targeted commissioning of the additional capacity in the second quarter of FY28. The planned expansion is intended to support its presence in Maharashtra and North Indian markets. Shreedhar Spinners operates in the business-to-business segment, supplying cotton yarn to textile manufacturers, exporters, traders and fabric processors. Its compact spun cotton yarn is used across knitting and weaving applications, including apparel, denim, bed linen, socks, furnishing fabrics and industrial textiles. The company has stated that its existing spinning facility is located at Amravati Textile Park and has 28,608 spindles.

Promoter warrant proposal received shareholder approval

In a separate capital-markets development, Shreedhar Spinners’ board approved a preferential issue of up to 900,900 fully convertible warrants on September 12, 2026. The warrants are proposed to be issued to eight identified promoters and promoter-group members. Shareholders approved the special resolution at an extraordinary general meeting held on October 9, 2026. The company’s corporate announcement stated that 10 members cast 690,000 remote e-voting votes, with all votes cast in favour and none against. The approval allows the company to proceed subject to applicable regulatory and statutory requirements.

Warrant issue is priced at ₹113 each

Each warrant carries an issue price of ₹113, comprising a face value of ₹10 and a premium of ₹103. At the maximum proposed issue size, the preferential allotment can raise up to ₹10.18 crore. The warrants are convertible into an equal number of fully paid-up equity shares within a maximum of 18 months from the date of allotment. Subscribers are required to pay 25% of the issue price upfront, or ₹28.25 per warrant. Based on the full issue size, the upfront payment amounts to ₹2.55 crore, while the balance would be payable on conversion under the stated terms.

FY26 revenue and profit showed improvement

Shreedhar Spinners reported revenue of ₹146.55 crore in FY26, compared with ₹134 crore in FY25, according to the information provided. This represented growth of about 9% year on year. Profit after tax rose to ₹6.17 crore in FY26 from ₹3.42 crore in FY25, while EBITDA was ₹17.62 crore. The annual financial summary also showed an operating profit margin of 12% for FY26, compared with 10% in FY25. Interest expense was reported at about ₹6 crore in FY26 in the annual comparison table.

Capacity utilisation frames the expansion decision

High utilisation is a key operating factor behind the planned capital expenditure. At approximately 95% utilisation, the existing 10,000 MT capacity leaves limited room to raise output without new equipment or facilities. The proposed 2,000 MT addition is therefore linked directly to the company’s stated manufacturing position. The project also introduces additional funding requirements because it will use both internal accruals and debt. The final operating contribution from the expansion will depend on commissioning as targeted and on the company’s subsequent production and sales disclosures.

What the developments mean for investors

The current set of announcements combines expansion spending, promoter-linked capital raising and an imminent quarterly-results meeting. The ₹45 crore project is substantially larger than the maximum ₹10.18 crore warrant issue, indicating that the expansion funding plan also relies on internal resources and borrowings. The warrant issue, if fully subscribed and converted, would result in up to 900,900 new equity shares. Its promoters-only structure and shareholder approval are material governance and capital-structure details for investors to track. No share-price movement or market valuation data was provided with the announcements, so no direct market-price impact can be established from the available information.

Business background and financial context

Incorporated in December 2020, Shreedhar Spinners manufactures 100% compact spun cotton yarn with counts ranging from Ne 10s to Ne 40s. The company supplies B2B customers rather than selling directly to retail consumers. It previously disclosed plans for a fresh issue of about ₹31 crore through an IPO, with proposed use of proceeds including working capital, machinery purchases for the existing facility and general corporate purposes. The available information also refers to a proposed Manufacturing Unit 2, with production commencement planned in 2026. However, no confirmed production-start date for that unit was included in the supplied material.

Key dates and figures to monitor

Conclusion

Shreedhar Spinners has set out a defined operating and funding agenda, led by a ₹45 crore plan to raise cotton yarn capacity by 20% and a promoter warrant issue of up to ₹10.18 crore. Its FY26 numbers showed revenue of ₹146.55 crore and net profit of ₹6.17 crore, ahead of the prior year. The immediate scheduled event is the October 27, 2026 board meeting for Q2 FY27 results. Investors will have further information when the company discloses the outcome of that meeting and provides updates on project execution.