Alok Industries Limited ("Alok") is one of Indias large vertically integrated textile company with uniqueness of integration in both Cotton and Polyester segments. In the Cotton segment, the Company is integrated right from spinning to weaving, processing, finished fabrics, bedsheets, towels and garments. In case of polyester, the integration is from continuous polymerization where PTA and MEG are used to make melt to produce polyester chips to Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), Drawn Texturized Yarn (DTY) and Polyester Staple Fiber (PSF). Aloks plants are situated at Vapi (in Gujarat) and Silvassa (part of a Union Territory near Vapi) and the Company has a wide customer base across the world that includes global retail brands, textile importers, private labels, and domestic retailers, garment and textile manufacturers and traders.
Alok, on July 17, 2017 underwent a corporate insolvency resolution process under section 31 of the Insolvency and Bankruptcy Code, 2016. Reliance Industries Limited (RIL) along with the JM Financial Asset Reconstruction Company Limited (JMFARC) and JMFARC - March 2018 - Trust submitted a Resolution plan that was approved by the Honble National Company Law Tribunal, Ahmedabad Bench (Approved Resolution Plan) vide its order dated March 8, 2019. The implementation of the Approved Resolution Plan was concluded with the re-constitution of the Board of Directors of the Company on September 14, 2020.
Ongoing geopolitical disturbances continue to disrupt key export markets, particularly in Western economies. The escalation of conflicts in the Middle East, along with the prolonged Russia-Ukraine situation, has led to volatility in energy prices, supply chains, and global trade flows. Increase in crude oil prices and disruptions in key shipping routes have elevated input and logistics costs, while also weakening consumer sentiment across major markets. In addition, rising protectionist measures and trade restrictions across major economies are further impacting export opportunities, as countries prioritize domestic industries and impose stricter import regulations.
The Company reported a positive EBITDA of Rs.78.93 crores in FY26 as compared to EBITDA of Rs.136.69 crores in FY25. The overall sales for the Company decreased to Rs.3,525.30 crores for the year ended March 31, 2026 as compared to sales of Rs.3,556.59 crores in the previous year. The domestic sales increased to Rs.2813.02 crores in FY 25-26 from Rs.2,712.72 crores in FY 24-25 and export sales declined from Rs.843.87 crores in FY 24-25 to Rs.712.28 crores in FY 25-26.
The strong background and support of the present promoters and the synergies in group operations is enabling the Company to sustain in the challenging environment. The Companys standalone rating continued to be CARE AA+ representing strong business fundamentals.
The detailed analysis of the performance of the Company has been given in Section 4 "Financial Performance".
1. Economic Overview
1.1 Global Economic Overview
The global economy maintained a stable growth trajectory during the year, despite ongoing macroeconomic challenges, including the imposition of higher US tariffs on key traded goods, which have weighed on global trade flows. Global GDP growth stood at 3.3% in 2025, improved marginally from 3.2% in 2024. Growth in advanced economies remained subdued, moderating from 1.8% to 1.7%, reflecting tighter financial conditions and weaker demand. In contrast, emerging economies continued to drive global growth, expanding by 4.4% in 2025, supported by strong domestic demand, increasing infrastructure investments, and improving manufacturing activity. Additionally, ongoing geopolitical tensions, including in the Middle East, have contributed to some volatility in energy prices, adding to the uncertainty in global energy markets. Overall, the global outlook remains uncertain due to geopolitical developments which continue to pose risks to sustained economic growth.
Figure 1: GDP Growth Rates
Source: International Monetary Fund
1.2 India Economic Overview
Indias economy continued to demonstrate resilience amid global macroeconomic challenges, consistently outperforming the global average on the back of strong domestic demand, GST rationalization, and resilient policy push. Despite external pressures such as supply chain disruptions and inflation, the country has maintained relative economic stability. In 2024-25, Indias real GDP* is estimated at Rs.299.89 lakh crore, grown by 7.1%, supported by sustained growth across manufacturing, services, and infrastructure sectors, reflecting the economys ability to adapt to evolving global conditions. Nominal GDP has reached Rs.318.07 lakh crore, underscoring Indias expanding presence in the global economy. Going forward, continued investments, rapid digitalization, and a favorable demographic profile are expected to further strengthen Indias growth outlook.
Figure 2: Indias GDP Growth Rate (at constant prices)
Source: MOSPI
*GDP figures are based on the revised series with base year 2022-23. Previous year comparisons may differ due to change in base year and methodology
FRE: First Revised Estimates
SAE: Second Advance Estimates
As of December 2025, Indias overall Index of Industrial Production (IIP) recorded a growth of 7.8% YoY, indicating a gradual stabilization in manufacturing activity despite continued global trade headwinds. However, the textile and apparel sectors experienced a visible slowdown, with the textile manufacturing index declining marginally from 113.8 to
111.4, while apparel manufacturing contracted sharply by nearly 8%, falling from 119.2 to 109.5 during the same period. This decline reflected a combination of factors including fluctuating export demand, elevated US import tariffs, inventory rationalization by global brands, and prevailing global macroeconomic uncertainty.
Figure 3: Indias Index of Industrial Production for Textile & Apparel
The industry outlook for FY27 remains uncertain, with growth drivers intact but near-term performance constrained by demand uncertainty, input cost volatility, and geopolitical disruptions. A broad-based recovery will depend on revival in global consumption and export markets. Recent Free Trade Agreements (FTAs) with the EU and UK, currently under discussion, are likely to enhance market access and improve export competitiveness for Indian players.
2. Textile & Apparel Industry Overview
2.1 Global Apparel Market Overview
The global apparel market is estimated at US$ 1.9 trillion in 2025, growing by 5% from 2024. Despite persistent economic uncertainties and inflationary pressures influencing consumer spending, the global apparel market has continued to expand in recent years, and it is further projected to reach US$ 2.3 trillion by 2030, growing at a CAGR of ~4%, indicating a stable growth outlook. Regionally, the EU and the US remain the largest markets, expected to reach US$ 371 billion and US$ 299 billion, respectively in 2025. Emerging markets such as India and China continue to gain prominence, with India projected to grow strongly to US$ 175 billion by 2030, while China is expected to reach US$ 250 billion during the same time. Indias projected 9% CAGR in apparel consumption through 2030 is the highest among all major markets globally, an unmatched domestic growth runway that few textile companies anywhere in the world are positioned to capture.
Overall, the global apparel market is expected to witness balanced growth across regions, with increasing contribution from emerging economies alongside steady demand in developed markets.
Table 1: Global Apparel Market Size (Value: US$ Bn)
| Region | 2022 | 2023 | 2024 | 2025(E) | CAGR 2022-25 | CAGR 2025-30(P) | 2030(P) |
| EU-27 | 304 | 315 | 317 | 371* | 7% | 1% | 390 |
| United States | 274 | 279 | 284 | 299 | 3% | 3% | 345 |
| China | 173 | 190 | 194 | 200 | 5% | 5% | 250 |
| India | 92 | 102 | 108 | 115 | 8% | 9% | 175 |
| Japan | 66 | 61 | 58 | 60 | -3% | 1% | 63 |
| Brazil | 39 | 49 | 51 | 51 | 9%* | 2% | 57 |
| UK | 43 | 46 | 46 | 49 | 5% | 5% | 62 |
| Canada | 19 | 27 | 25 | 28 | 14%* | 2% | 31 |
| RoW | 645 | 635 | 734 | 736 | 5% | 5% | 927 |
| World | 1,655 | 1,703 | 1,817 | 1,910 | 5% | 4% | 2,300 |
Data Source - Euratex, US Census Bureau, HKTDC, METI Japan, TEXBRASIL, Statistics Canada, IMF, and Wazir Analysis *High growth is mainly due to high inflation & currency appreciation against US$
Demand across key markets such as the US and EU remained steady in 2025, largely constrained by geopolitical pressures and cautious consumer spending. In the US, retail performance showed only modest improvement, with apparel store sales rising by 4% and home furnishing store sales by 3% in the same period. Meanwhile, business confidence in the EU textile and clothing sectors stayed subdued1, with both segments largely operating in negative territory due to weak demand conditions.
At the same time, supply chain diversification and sustainability-driven sourcing are reshaping global sourcing patterns, benefiting diversified and high-scale manufacturers.
In this context, India continues to emerge as a key strategic destination for global retailers and investors, supported by its large domestic market, new FTAs, improving manufacturing ecosystem, and growing capabilities in value-added and sustainable textile production.
2.2 Global Textile & Apparel Trade
In 2025, the global textile and apparel (T&A) trade is estimated at around US$ 900 billion, increased by 2% compared to last year. Despite several challenges in the global economy, the industry has demonstrated resilience with a marginal recovery. Going forward, demand across major markets is expected to strengthen, supporting future growth.
Apparel continues to dominate the sector, accounting for nearly 60% of total trade value in 2025, reflecting sustained global demand for finished garments.
Figure 4: Global T&A Trade (Value: US$ Bn)
Source: UN Comtrade & Wazir Analysis. E: Estimated, P: Projected
From an export perspective, China retained its position as the largest global exporter, contributing US$ 291 billion in textile and apparel shipments, commanding a 32% share of global trade. The European Union (Extra EU-27) ranked second with an 8% share, valued at US$ 69 billion, followed by Vietnam at US$ 46 billion (5%), surpassing Bangladesh and India. Bangladesh and India followed closely with exports of US$ 40 billion and US$ 37 billion, respectively. Turkey, USA, and the rest of the world (RoW) contributed to the remaining global trade.
The industry is expected to maintain an upward trajectory in the coming years, with global trade projected to reach US$ 1,200 billion by 2030.
USA Imports
In 2025, the USAs total textile and apparel imports declined to US$ 108 billion from US$ 113 billion in 2024, reflecting the impact of higher tariffs and subdued demand. While China remained the largest supplier, its exports to the US dropped sharply from US$ 28 billion to US$ 19 billion, indicating continued supply chain diversification. In contrast, Vietnam further strengthened its position, with exports rising from US$ 16 billion to US$ 18 billion, emerging as a key alternative sourcing hub. India recorded stable performance at around US$ 10 billion, while Bangladesh witnessed a modest increase from US$ 7 billion to US$ 8 billion. Other sourcing countries such as Cambodia and Pakistan also saw marginal growth, whereas imports from the EU and Mexico remained largely unchanged. Overall, the trend reflects a gradual shift in US sourcing away from China towards more diversified and competitive manufacturing destinations.
Figure 5: Major T&A Suppliers to the USA
(Value: US$ Bn)
Source: OTEXA
EU Imports
Compared to 2024, the EUs total T&A imports grew marginally from $131 billion to $138 billion in 2025. China retained its position as the dominant supplier, with exports rising from $41 billion to $43 billion. Bangladesh consolidated its standing as the second- largest supplier, with exports increasing from $20 billion to $22 billion. Turkey remained flat at $15 billion. India maintained exports at $7 billion in 2024, edging up to $8 billion in 2025, with its position expected to strengthen over the medium term following the conclusion of the India-EU FTA in January 2026, which, once ratified and in force, will eliminate tariffs on a significant portion of T&A exports. Pakistan recorded a notable increase from $7 billion to $8 billion, narrowing the gap with India. Vietnam grew from $5 billion to $6 billion, while Cambodia rose from $4 billion to $5 billion. Smaller suppliers including Morocco, Tunisia, and Myanmar remained broadly unchanged at $3 billion, $3 billion, and $2 billion respectively. Overall, EU import trends reflect a stable sourcing pattern with incremental diversification, though the FTAs entry into force could meaningfully shift Indias competitive positioning against GSP-beneficiary peers.
Figure 6: Major T&A Suppliers to the EU (Value: US$ Bn.j
Source: Eurostat
*Only Extra EU has been considered
2.3 Indian Textile and Apparel Industry
Indias textile and apparel market is estimated to be worth US$ 194 billion in 2025-26. This market has demonstrated consistent growth over time, driven primarily by strong domestic demand. The industry is largely driven by the domestic market, which accounts for US$ 157 billion (81%), while exports contribute US$ 37 billion (19%), indicating a strong internal consumption base alongside a significant export presence.
Figure 7: Indias T&A Market Size
Source: Wazir Analysis
Within the domestic segment, apparel dominates with US$ 115 billion, making it the largest contributor, supported by rising disposable income and increasing fashion consumption. Technical textiles form the second-largest segment at US$ 30 billion, reflecting growing demand across sectors such as healthcare, infrastructure, and automotive. Home textiles contribute US$ 12 billion, driven by steady demand in both urban and export-linked categories.
Although exports account for a relatively smaller share (US$ 37 billion) of Indias T&A market, they remain critical to its position as a global sourcing hub.
In recent times, the Iran-Israel-US conflict has significantly impacted Indias textile and apparel sector, creating pressures across logistics, input costs, and overall operations. Disruptions in key maritime routes, particularly the Red Sea and the Strait of Hormuz, have led to shipment rerouting, increasing transit times, and raising freight and insurance costs, thereby affecting exporters margins and delivery timelines. Concurrently, energy supply constraints have intensified the situation, as Indias LPG imports, of which majority pass through the Strait of Hormuz, have been disrupted. Overall, the industry is witnessing an additional cost burden due to war-related surcharges, adversely impacting global competitiveness.
2.4 Indias Domestic Market Scenario
Despite the global uncertainties & macro-economic challenges, Indias domestic market has shown resilience over the past few years. Indias domestic textile and apparel (T&A) market is estimated to US$ 157 billion in 2025-26, reflecting a growth of 7% compared to the previous year. Apparel dominates, contributing US$ 115 billion, while home textiles (US$ 12 billion) and technical textiles (US$ 30 billion) are steadily growing.
Figure 8: Indias Domestic T&A Market (Value US$ Bn)
Source: Wazir Analysis
The domestic T&A market is expected to grow at a CAGR of 9% from 2025-26 onwards and reach US$250 billion by 2030-31. Technical textiles are expected to be the fastest-growing segment, reaching US$ 54 billion by 2030-31, while home textiles will expand to US$ 16 billion. With the GST 2.0 reforms effective September 22, 2025, the threshold for the concessional 5% GST rate on readymade garments was raised from Rs.1,000 per piece to Rs.2,500 per piece. This effectively expands affordable apparel access for middle- and lower- income households, the segment that drives volume in Indias domestic market. Simultaneously, GST on man-made fiber was reduced from 18% to 5%, and on man-made yarns from 12% to 5% addressing a longstanding inverted duty structure that had suppressed margins across the MMF value chain. Together, these changes are expected to stimulate domestic consumption, improve manufacturing competitiveness for MMF-based apparel, and reduce working capital locked in unadjusted input tax credits.
Further, the extension of the PLI Scheme with revised, more accessible thresholds and PM MITRAs transition into mission mode are expected to catalyze fresh capital investment in textile manufacturing, expand domestic production capacity, and strengthen Indias competitiveness across the value chain.
2.5 Indias Exports Scenario
Indias textile and apparel (T&A) exports have fluctuated over the years, reaching an estimated US$ 37 billion in 2025-26, remaining flat from US$ 35 billion in 202425. Apparel remains the largest export segment, contributing US$ 16 billion, followed by home textiles (US$ 6 billion), yarn (US$ 5 billion), and fabric (US$ 5 billion). Product diversification, FTA with major markets & government initiatives for exporters will play a vital role in sustaining growth in the coming years.
Figure 9: Indias T&A Exports (Value US$ Bn)
Source: DGCI&S
2.6 Indias Import Scenario
Indias textile and apparel imports have grown 9% from 2024-25, reaching an estimated US$ 10.5 billion in 2025-26. Fiber holds the largest share of imports at approximately 25%, followed by fabric at 21%. A significant portion of these imports includes synthetic fiber, yarn, and fabric, which are not widely produced in India.
Additionally, easing import restrictions, such as the rescission of 14 QCOs on polyester intermediates, including PTA, MEG, POY, FDY, and PSF, in November 2025, rising domestic demand, and premiumization, along with supply gaps in specialized materials, are expected to drive higher imports in India.
Figure 10: Indias T&A Imports (Value US$ Bn)
Source: DGCI&S
3. Alok Business Segments
Alok Industries has a strong presence in both the Cotton and Polyester segments. In the Cotton segment, the Company is integrated from spinning to weaving, processing, finished fabrics, bedsheets, towels and garments. In case of polyester, the company is integrated, starting from a continuous polymerization plant to the production of chips, POY, FDY, DTY, and PSF.
The Companys vertically integrated facilities and flexibility of operations enable it to produce cotton and cotton-blended fabrics in various counts and construction and a wide range of finishes. The Companys global-scale integrated plants, modern manufacturing flexibility, product development team and competent marketing force facilitate a deep understanding of customer needs and their satisfactory fulfilment.
The Company has a large customer base comprising of domestic and overseas retailers, brands, and garment exporters in India and converter countries (countries which primarily do garment manufacturing like Bangladesh, Vietnam, Sri Lanka) who are vendors to major international labels. This product, customer and market diversification enables risk mitigation and places the Company at a competitive advantage over other players in the industry. Alok has also ensured that its target market is a diverse mix of the international market, garment export trade and domestic market.
The level of integration of Alok as shown in Chart below:
The company operates under the following four divisions:
• Spinning Division
• Polyester Division
• Home Textiles Division
• Apparel & Fabric Division
3.1. Spinning Business Outlook
Indias yarn exports decreased by 9% year-on-year in FY-26 (10 Months), standing at US$ 4.0 billion. During the year, domestic cotton prices traded above global benchmarks through much of FY26, driven by a production shortfall and an increase in MSP. The temporary import duty exemption from August to December 2025 provided interim relief. Global geopolitical developments have also contributed to supply chain uncertainty and price volatility in cotton markets during the year. In the future, large-scale and integrated spinning units will be more competitive in export markets.
Bangladesh, a significant buyer of Indian cotton yarn, has seen procurement volumes weaken following the political instability since August 2024. This has moderated near-term yarn export demand from one of Indias main off-take markets. However, the same instability has prompted global apparel brands to accelerate supply chain diversification away from Bangladesh, a structural shift that favors large, integrated Indian manufacturers.
Figure 11: Cotton Price Comparison
Source: Emerging Textiles
Further, Indias cotton output is projected to decline by 1.7% in cotton year 2026 (October 2025-September 2026), reaching 29.2 million bales, its lowest level in the past decade.
Alok, a key player in the Indian spinning industry, is known for its large scale, advanced infrastructure and strong emphasis on research and product development. Its spinning facilities are in Silvassa, with a significant portion of its yarn, approximately 55% to 60%, being internally consumed across its woven fabrics, knitted fabrics, bedding, and terry towel divisions. This positions the company to absorb margin pressure that standalone spinners cannot, and to benefit disproportionately when the cotton cost differential normalizes.
3.2. Polyester Business Outlook
Indias polyester exports declined sharply by 27% in FY- 26 (10 Months), with total shipments falling to around US$ 0.7 billion, comprising nearly US$ 0.5 billion of filament yarn and US$ 0.2 billion of polyester staple fiber. A significant portion of polyester production is increasingly being absorbed within the domestic market, supported by strong growth in end-use segments. Additionally, India is gradually moving up the value chain, with a higher share of polyester used in the production of finished textiles and garments for export, rather than being exported as fiber or yarn.
The removal of QCOs on polyester imports has reduced compliance costs across the sector and lowered entry barriers for smaller players. In addition to this, rising crude oil prices, partly influenced by geopolitical developments, have led to an increase of ~20% in polyester prices, which may add to cost pressures in the near term.
However, looking forward, increase demand in active wear and Government focused initiatives on synthetic segment such as the Production Linked Incentive (PLI) scheme are further expected to strengthen Indias position in the global market.
However, the Company has shifted its major polyester business to Manufacturing Capacity Booking (Job-work model) from March 2024.
3.3. Home Textiles Business Outlook
India has emerged as a leading global player in home textiles, ranking second after China with an estimated ~11% share in global trade. Indias home textile exports stood at around US$ 6.5 billion in FY-26 (10 Months), registering a decline of 5% YoY due to the challenges in global market such as, soft demand in key markets like the US and EU due to inflationary pressures, inventory corrections by global retailers, higher tariff impacts in the US, and geopolitical uncertainties affecting trade flows and logistics costs.
However, India has a strong and rapidly growing domestic market for home textiles, supported by rising incomes, urbanization, and increasing demand for lifestyle and home improvement products.
The major export market for home textile products for Alok is USA, which is the largest consuming Centre for home products in the world. Indias home textile exports to the US have grown by 5% over the past five years, and with ongoing bilateral trade agreements expected to favor India, the country is well positioned to further strengthen its share in the US market.
Figure 12: Indias Home Textile Exports to US (Values in US$ Bn.]
Source: DGCI&S
Additionally, the EU—India Free Trade Agreement once implemented, the Company is well-positioned to capitalize on significant growth opportunities in the EU, which is the second-largest market for home textiles.
Looking ahead, the outlook for the segment remains positive. Growth will be driven by Indias new FTAs with EU and UK, increasing demand for sustainable and certified products, rising preference for value-added and design-led offerings, and expansion into newer markets beyond traditional regions. Indias strong manufacturing ecosystem, characterized by large, integrated players, availability of raw materials, and improving compliance standards, positions it well to capitalize on these opportunities. Furthermore, supply chain diversification by global brands, coupled with cost competitiveness, increasing focus on innovation, branding, and faster turnaround capabilities, will play a crucial role in driving future growth in home textile exports.
Alok is one of the largest home textiles manufacturers/ exporters in India and has a large capacity of manufacturing in bedding as well as terry towel. Its weaving manufacturing facility & major stitching unit for bedding is at Silvassa and fabric processing is at Vapi. The entire terry-towel manufacturing is at Vapi.
3.4. Fabrics & Apparel Business Outlook
In FY26 (10 months), Indias fabric exports grew ~5% YoY to US$ 3.9 billion, despite challenging global conditions such as higher tariffs on exports to the US, ongoing geopolitical tensions, and subdued demand in key markets. This growth is primarily driven by an 8.4% increase in woven fabric exports, while knitted fabric exports remained largely stagnant. This trend is mainly due to stronger global demand for woven fabrics used in home textiles and structured apparel, which have seen more stable consumption compared to knitted fabrics linked to discretionary fashion segments facing slower recovery and inventory corrections in the US and EU. Additionally, Indias competitive strength in cotton- based woven fabrics, supported by rising preference for natural fibers and shifting sourcing strategy, has further boosted woven exports.
Indias apparel exports also witnessed a recovery in FY-26 (10 Months), increasing by 2% YoY to US$ 13.2 billion. The shift in sourcing strategies and potentially lower US tariff compared to Bangladesh has created a significant opportunity for India to strengthen its position as a key apparel exporter. Further, Bangladesh is set to officially graduate from Least Developed Country (LDC) status on November 24, 2026, which will make India competitive. This advantage is further reinforced by Indias recently concluded Free Trade
Agreements (FTAs) with key markets such as the UK and the EU, which are expected to enhance duty competitiveness and improve market access.
Looking ahead, as global demand continues to recover, India is well-positioned to expand its export footprint. In addition to exports, the domestic apparel market presents a strong growth opportunity, projected to grow at a CAGR of ~9% to reach US$ 180 billion by 2030, up from the current level of US$ 115 billion, driven by rising incomes, urbanization, recent GST rationalization, and evolving consumer preferences.
3.5. Embroidery Business Outlook
The global embroidery market is projected to grow at a CAGR of ~5% through 2030, driven by rising demand for personalised, design-led products across apparel, home decor, and occasion wear. Technological advancements, including digital and computer-aided embroidery machines, are improving production efficiency and enabling faster design turnaround, which is reshaping competitive dynamics in favour of automated, large-scale manufacturers. However, the export segment faced meaningful headwinds in FY26, as embroidery, being a discretionary and fashion-linked product, was disproportionately impacted by subdued consumer sentiment in the US and EU, inventory destocking by global retailers, and demand contraction in the fashion and occasion wear segments.
Aloks embroidery business is located at Silvassa and caters to both domestic garment manufacturers and export markets. The business witnessed a decline of ~39% in FY26, reflecting both the broader demand slowdown and the impact of elevated US tariffs on value-added textile exports. As a fashion-driven segment, embroidery revenue is inherently cyclical and closely correlated with consumer spending trends in key markets.
Looking ahead, the demand outlook is expected to recover gradually as inflationary pressures ease in the US and EU and consumer discretionary spending stabilises. The domestic market presents a more immediate growth opportunity, with rising demand for embroidered fabrics in occasion wear, ethnic fashion, and the growing organised retail and D2C channels. The Companys automated embroidery infrastructure positions it to respond quickly to design trends and scale volumes as order momentum recovers in FY27.
3.6. Sustainability as the Key Pillar
The inclusion of textiles among obligated sectors under Indias Carbon Credit Trading Scheme, the expansion of SEBIs BRSR Core reporting to the top 500 listed companies, and the advancement of EU regulations including the Digital Product Passport and textile EPR requirements collectively signal that sustainability compliance is transitioning from voluntary to mandatory. These developments favor manufacturers with existing investments in emissions monitoring, traceability systems, and ESG reporting infrastructure.
Alok Industries has elevated sustainability from a compliance requirement to a core strategic priority, driving a comprehensive transformation across its value chain centred on circularity, renewable energy, and resource efficiency.
During the year, Alok accelerated its transition toward high-performance, sustainable fiber by leveraging Reliance Industries Limiteds advanced Recron technologies, including Kooltex and Green Gold, enabling a strategic shift in its product portfolio toward technical home textiles and specialized blends.
4. Financial Performance (Standalone)
During FY26, market conditions remained challenging across product segments. The ongoing conflicts in the Middle East and the Russia-Ukraine situation continued to disrupt global textile trade flows and suppress demand in key export markets. Additionally, the imposition of US reciprocal tariffs, escalating to 50% on Indian textile exports from August 2025, directly impacted the Companys export realizations, particularly in home textiles and fabrics where the US is the primary market. Export sales declined during the year on account of these combined pressures. A significant portion of the Companys domestic sales serve as inputs to end-product exporters, making the business sensitive to broader export ecosystem conditions. The Company continued to operate its polyester business under the job work model adopted in March 2024.
The Embroidery business decreased by around 39% in FY 26. Apparel Woven Fabric witnessed a growth of around 31% in the sales revenue as compared to the previous year. The overall sales revenue in Apparel Fabric business increased by around 19%.
The local sales increased to Rs.2813.02 crores in FY 2526 from Rs.2,712.72 crores in FY 24-25 and export sales declined from Rs.843.87 crores in FY 24-25 to Rs.712.28 crores in FY 25-26.
The Company reported a positive EBITDA of Rs.78.93 crores in FY26 as compared to EBITDA of Rs.136.69 crores in FY25.
Table 2 gives the summarized profit and loss statement of the Company in the current financial year compared to the previous financial year. The brief analysis of the stand-alone results is given in the table below:
Table 2: Summarized Profit and Loss Account (standalone)
| PROFIT & LOSS ACCOUNT | 31-Mar-26 | 31-Mar-25 |
| Local Sales | 2,813.02 | 2,712.72 |
| Export Sales | 712.28 | 843.87 |
| NET SALES | 3,525.30 | 3,556.59 |
| Other Income | 34.11 | 72.72 |
| TOTAL INCOME | 3,559.41 | 3,629.31 |
| Material Costs | 1,827.53 | 1,917.18 |
| Employee Benefits | 419.46 | 434.90 |
| Other Expenses - without provisions | 1,232.40 | 1,220.92 |
| TOTAL EXPENSES | 3,479.39 | 3,573.00 |
| OPERATING EBITDA before provisions | 80.02 | 56.31 |
| Other Expenses - provisions | 31.88 | 13.76 |
| Exceptional Gain on sale of fixed assets | 30.79 | 94.14 |
| OPERATING EBITDA after provisions | 78.93 | 136.69 |
| Depreciation | (258.65) | (292.04) |
| OPERATING EBIT | (179.72) | (155.35) |
| Interest & Finance Costs | (600.09) | (613.46) |
| (Loss) / Profit before tax and exceptional items | (779.81) | (768.81) |
| Add / (Less): Provision for Taxes | - | - |
| LOSS AFTER TAX | (779.81) | (768.81) |
| Other Comprehensive Income | 6.70 | 0.79 |
| Total Comprehensive Income | (773.1 1) | (768.02) |
Profit and Loss Analysis
• Net Sales for the year were Rs.3,525.30 crore comprising of domestic sales of Rs.2,813.02 crore and export sales of Rs.712.28 crore (previous year sales Rs.3556.59 crore: domestic Rs.2712.72 crore and export Rs.843.87 crore). The sales during the year decreased by -0.88% over the previous year due to the continued downturn witnessed by major economies of the World due to adverse geopolitical conditions. The domestic sales increased by 3.70% as compared to previous year whereas Export sales saw a contraction of 15.59%.
• Operating PBT and PAT The Profit Before Tax for the year was a loss of Rs.779.81 crore as compared to loss of Rs.768.81 crore in the previous year. Since there was no provision for Tax in both the years, the Profit After Tax for the year also was loss of Rs.779.81 crore as compared to loss of Rs.768.81 crore in the previous year.
• Other Comprehensive Income for the year of profit was Rs.6.70 crore as compared to loss of Rs.0.79 crore in the previous year.
• Net (Loss) / Profit After Other Comprehensive Income was a loss of Rs.773.11 crore in the current year against a loss of Rs.768.02 crore in the previous period.
Key Ratios
Table 3 gives the Key ratios of the Company (standalone)
Table 3: Key Ratios
| Particulars | 31-Mar-26 | 31-Mar-25 |
| 1 Debtors Turnover - Days | 32 | 43 |
| 2 Inventory Turnover - Days | 82 | 81 |
| 3 Interest Coverage | 0.13 | 0.09 |
| 4 Current Ratio | 0.72 | 1.34 |
| 5a Debt - Equity | (0.17) | (0.18) |
| 5b Debt - Equity (quasi) | 2.75 | 1.70 |
| 6a Operating EBITDA Margin (%) without provisions | 2.27% | 1.58% |
| 6b Operating EBITDA Margin (%) after provisions | 2.24% | 3.84% |
| 7 Net Profit Margin (%) | -22.12% | -21.62% |
Comments on Ratios:
• Debtors Turnover Days: Debtor turnover days at 32 days reduced during the year as compared to previous year debtor turnover days of 43 days. In absolute terms, debtors as on March 31, 2026 reduced to Rs.304 crore as compared to Rs.422 crore as on March 31, 2025.
• Inventory Turnover Days: Inventory turnover days at 82 days increased during the current year as compared inventory turnover days of 81 days in the previous year. In absolute terms inventory increased to Rs.791 crore as compared to Rs.787 crore in the previous year.
• Interest Coverage Ratio: Our interest outgo for the year was Rs.600 crore (previous year interest Rs.613 crore). Based on EBITDA for the year before exceptional items and provisions of Rs.60 crore (previous year Rs.56 crore), the interest coverage ratio is 0.13, as compared to 0.09 times in the previous year.
• Current Ratio: The current ratio for FY 26 was 0.72 times as compared to 1.34 times in the previous year. The total current assets for the year were Rs.1219 crore (previous year Rs.1384 crore). The installment of term loan due within a year is 218.75 crore ( 43.75 in the previous year). The current liabilities for the year increased to Rs.1702 crore, including term loan due within a year, ( 1033 crore in the previous year).
• Debt/ Equity Ratio: The Net worth of the Company in FY 26 was negative at Rs.19676 crore (Previous year negative net worth of Rs.18903 crore). The rise in negative net worth during the year was due to a loss of Rs.773 crore (previous year loss of Rs.768 crore). The outside long-term debt of the Company as on March 31, 2026 net of cash and balances was Rs.3440 crore (Previous year Rs.3447 crore). The Debt/ Equity ratio for the year was negative 0.17 as compared to negative 0.18 in the previous year.
• Quasi- Debt/ Equity Ratio: The quasi net- worth of the Company as on March 31, 2026 was Rs.1252 crore (previous year 2024 crore). The same is arrived at by adding Rs.17,384 crore (previous year Rs.17,384 crore) interest free long-term loans from the promoters and long-term preference shares of Rs.3544 crore (Previous year Rs.3543 crore) subscribed by the promoters to the equity & reserves. Based on this, the quasi debt/ equity ratio as on March 31, 2026 was 2.75 as compared to 1.70 as on 31 March 2025.
• Operating EBITDA before considering
Provisioning: Operating Earnings before Interest,
Depreciation, Tax and Amortization (EBITDA) without considering provisions for the year was profit of Rs.80.02 crore which is 2.27% to sales (previous year Rs.56.31 crore 1.58% to sales).
• Operating EBITDA after considering Provisioning and exceptional gains: Operating Earnings before Interest, Depreciation, Tax and Amortization
(EBITDA) for the year is profit of Rs.78.93 crore (previous year Rs.136.69 crore) after considering provisioning of Rs.31.88 crores (previous year provisioning of Rs.13.76 crore) and an exceptional gain of Rs.30.79 (previous year 94.14). As a percentage of sales, operating EBITDA is at 2.24% (previous year positive 3.84%).
• Net (Loss) / Profit After Tax: Net Loss After Tax is Rs.779.81 crore in the current year (previous year net loss of Rs.768.81 crore). The loss is due to depreciation for the year of Rs.258.65 crore (previous year Rs.292.04 crore) and interest cost of Rs.600.09 crore (previous year Rs.613.46 crore). The Net profit Margin for the year is negative 22.12% as compared to negative 21.62% in the previous year.
Cash Flow
Table 4 gives the abridged cash flow statement of the Company.
Table 4: Summarized Cash Flow Statement
| PARTICULARS | 31st March, 2026 | 31st March, 2025 |
| Net cash (used in) / generated from operating activities | 408.37 | 112.37 |
| Net cash (used in) / generated from investing activities | (133.27) | 271.57 |
| Net cash (used in) / generated from financing activities | (273.10) | (380.43) |
| Net (Decrease)/Increase in Cash and Cash equivalents | 2.00 | 3.51 |
| Cash and Cash equivalents as at year end | ||
| At the beginning of the year | 11.72 | 8.21 |
| At the end of the year | 13.72 | 11.72 |
| Net (Decrease)/Increase in Cash and Cash equivalents | 2.00 | 3.51 |
Comments on Cash Flow:
a. Cash Flow from Operating Activities: During the financial year, Company generated positive Operating Cash flow of Rs.63.49 crore (previous year negative Rs.4.87 crore) before working capital changes). The changes in working capital by way of reduction during the year were Rs.361.98 crore ( Rs.144.47 crore in the previous year). After considering Income tax of Rs.17.10 crore (previous year Rs.27.23 crore), the cash flow from operation for the year is Rs.408.37 crore ( 112.37 crore for previous year). The Company could generate the cash flow from operations during the year due to the reduction in net working capital achieved during the year.
b. Cash Flow from Investing Activities: There is a net cash used of 133.27 crore in investing activities in March26 (cash generated of Rs.271.57 crore in March25). The major utilization was towards purchase of capital goods/ maintenance capex/ CWIP during the year by the company amounting to Rs.238.57 crore (Previous year Rs.77.88 crore). The receipt during the year from proceeds of assets Rs.30.25 crore (previous year Rs.125.74 crore). Proceed from insurance company amounting to Rs.25 crore (previous year Rs.55 crore). The other inflow for the year was receipt of interest of Rs.2.19 crore (previous year Rs.6.02 crore) and proceed from rental income during the year was Rs.9.59 crore (previous year Rs.9.68 crore). The current year inflows from maturity of fixed deposit Rs.38.27 crore (previous year Rs.153.01 crore) increased the total inflow due to investing activities.
c. Cash Flow from Financing Activities: The net
cash utilization in Financing activities was Rs.273.10 crore in March26 as compared to Rs.380.43 crore in March25. The inflow form long-term borrowings Rs.Nil crores in current period ( 50 crores in the previous year). Major utilization during the year was towards interest payment of Rs.268.03 crore on the term loan, working capital and others ( 291.30 crore in March25). The repayment of term loans amounting to Rs.43.75 crore ( Nil in March25). The company increased its working capital borrowing by Rs.40.43 crore in the current year (Repayment of Rs.134.07 crore in the previous year).
d. Cash Flow Summary: Overall, there was a net Cash generation of Rs.2 crore in FY26 (previous year was Rs.3.51 crore).
Textiles Business: Operations Review Overview
Aloks business comprises of a single business segment i.e., Textiles. Within Textiles, Aloks business comprises of Cotton Yarn, Apparel Fabric (Wovens, Knits & Garments), Home Textiles (Sheeting & Terry Towel), and Polyester Yarn. The division wise sales and its bifurcation into domestic and export is given in table 5 below:
Table 5: Snapshot of Aloks product-group wise sales distribution
| Business Division | 12 M ENDED 31 MAR 2026 | 12 M ENDED 31 MAR 2025 | |||||||
| Local | Export | Grand Total | % to Total sales | Local | Export | Grand Total | % to Total sales | Change | |
| App. Woven Fabric | 664.43 | 29.31 | 693.74 | 19.68% | 477.22 | 51.06 | 528.27 | 14.85% | 31.32% |
| Knits | 122.24 | 35.77 | 158.02 | 4.48% | 109.07 | 32.91 | 141.98 | 3.99% | 11.30% |
| Embroidery | 42.41 | 25.26 | 67.67 | 1.92% | 92.49 | 18.61 | 111.10 | 3.12% | -39.09% |
| Garment | 105.57 | 14.34 | 119.91 | 3.40% | 89.21 | 7.86 | 97.07 | 2.73% | 23.53% |
| Hemming | 31.53 | 4.88 | 36.41 | 1.03% | 22.82 | 4.17 | 26.98 | 0.76% | 34.96% |
| Total Apparel Fabric | 966.18 | 109.57 | 1,075.75 | 30.52% | 790.81 | 114.60 | 905.41 | 25.46% | 18.81% |
| Bedding | 162.67 | 257.57 | 420.24 | 11.92% | 146.94 | 295.10 | 442.04 | 12.43% | -4.93% |
| Bath | 78.60 | 212.28 | 290.88 | 8.25% | 107.60 | 261.01 | 368.61 | 10.36% | -21.09% |
| Total Home Textile | 241.27 | 469.85 | 711.12 | 20.17% | 254.54 | 556.12 | 810.66 | 22.79% | -12.28% |
| Packaging | 52.78 | - | 52.78 | 1.50% | 68.14 | - | 68.14 | 1.92% | -22.54% |
| Polyester | 1,040.81 | - | 1,040.81 | 29.52% | 1,072.23 | 21.41 | 1,093.64 | 30.75% | -4.83% |
| Spinning | 511.98 | 132.87 | 644.84 | 18.29% | 526.99 | 151.75 | 678.74 | 19.08% | -4.99% |
| Grand Total | 2,813.02 | 712.28 | 3,525.30 | 100.00% | 2,712.72 | 843.87 | 3,556.59 | 100.00% | -0.88% |
Local Sales
The easing of oversupply situation in the Apparel Fabric businesses in India coupled had positive impact on the efforts of the company to increase its sales in domestic market. In the financial year 2025-26, the local sales saw an increase to Rs.2813.02 crore from Rs.2712.72 crore in the previous year, an increase of 3.70%.
Export Sales
The Companys export business during the year decreased by 15.59% to Rs.712.28 crore as against Rs.843.87 crore in the previous year.
The Table below depicts the share of different regions in Aloks exports. The share of the USA in the overall export basket of Alok decreased in the year to 38.07% from 46.33% in the previous year due to tariff. The share of Asia is increased during the year. It increased from 43.65% in the previous year to 44.92% in the current year. The share of Europe increased during the year from 2.42% in the previous year to 6.20% in the current year. Share of African continent has decreased to 1.41% in the current year as compared to 2.97% in the previous year.
Table 6: Regional Distribution of Exports
Manufacturing and Business Excellence:
Alok Industries Limited is an integrated textile manufacturer with operations in both cotton and polyester value chains. Modern age fibers like Bamboo blends, 100% Viscose from bamboo, 100% Tencel, Tencel Linen blends, Cotton Tencel blends, Modal etc. We can produce and supply to as per market requirements. The Company has created world-scale capacities and has a market presence in the domestic as well as export markets. It has global retailers, brands, reputed garment manufacturers and traders in its portfolio of customers.
Aloks business excellence is driven by the following strategic advantages:
• Established relationship with leading global brands and retailers
• State-of-the-art manufacturing facilities and supporting infrastructure.
• Strong emphasis on Quality, Cost and Delivery in time (QCD)
• Economies of scale that provide competitive advantages
• Forward and Backward integration leading to assured quality parameters across the chain
• Wide range of products across different product segments
• In-house product development and designing strength.
The Company has received certifications of Integrated Management System comprising of ISO 9001:2015 (QMS), ISO 14001: 2015 (EMS) and ISO 45001:2018(OHSMS) indicating the robust systems and processes being followed by the Company. Alok is also compliant with the health, safety, and environmental norms and has obtained various eco certifications for its products, as required in export markets. Details of these certifications are covered under the section "Quality, Safety, Health and Environment".
Quality, Safety, Health and Environment
1. Quality, Safety, Health, and Environment
At Alok, continuous efforts at developing world class processes and quality assurance are a fundamental and non-negotiable part of the way business is conducted. There is constant focus on manufacturing and allied practices to adhere to the concept of get it right - first time and every time. To achieve this, the Companys products, manufacturing processes and equipment are rigorously checked for quality standards and process deviations, if any.
The Companys adherence to internationally recognized certification standards and compliances has been recognized by reputed certification bodies (see Table 7). Today, the Company has the following certifications/ accreditations:
Table 7: Major Certification- Divisions, Plants and Locations Covered.
| Certification | Division / Plant / Location |
| ISO 9001:2015 (QMS) | • Process House, Vapi (Normal and Wider width) |
| ISO 14001:2015 (EMS) | • Weaving, Silvassa |
| ISO 45001:2018(0HSAS) (Integrated Management System) | • CP, POY, FDY, PSF and Texturizing, Silvassa |
| • Made Ups, Vapi | |
| QAI Iso/IEC 17025:2017 | • Made Ups Garments, Vapi |
| Lenzing - Lyocell | • Spinning and Knitting, Silvassa |
| LIVA Accredited Partner | • Embroidery Division, Silvassa |
| QIMA Certified Site | • Process House -Wider Width |
| • Certification Confirmation letter from Lenzing and valid till May 2027 | |
| • Privileged Partner for LIVA Natural Fluid Fashion and valid till July 2027. | |
| • QIMA approved site for working with Action Customer. | |
| Products : | |
| IS 17261:2022 | • Fully Drawn Yarn (FDY) |
| IS 1 7262:2022 | • Partially Oriented Yarn (POY) |
| IS 17263:2022 | • Polyester Staple Fibers (PSF) |
| IS 17265:2022 | • 100% polyester spun Greig and white yarn |
| IS 18739 : 2024 | • Made-ups ( All India First BIS License ) |
| IS 7056 : 2024 | • Terry towels |
| IS 18930 : 2024 | • Polyester Fiber Filled Pillow (All India First & Only BIS License) |
| IS 17630 : 2021 | • Bed Sheet and Pillow cover , Duvet set |
| IS 17265:2023 | • Spinning |
| RIL( Portico) | • Made-ups - vendor Compliance. |
| SMETA-SEDEX Members Ethical Trade Audit | • Silvassa SMU and Made-ups |
| • Wadi Garment | |
| WRAP- Worldwide Responsible Accreditation Program. | • Terry Towel, Knits processing |
| BSCI-Business Social Compliance Initiative | • Embroidery |
| (Social requirements) | |
| GOTS: Global Organic Textile Standards | • Head Office, Mumbai |
| OCS-Organic Content Standard | • Spinning and Knitting Division, Silvassa |
| GRS: Global Recycle Standards. | • Weaving Division, Silvassa |
| RCS: Recycled Claim Standards | • Process House (Normal and Wider Width), Vapi |
| • Made ups and Garments Division, Silvassa | |
| • Knit Processing, Vapi | |
| • Terry Towel Division, Vapi | |
| • Made-ups Division, Vapi | |
| • Embroidery Division, Silvassa | |
| • POY Units, | |
| Fair Trade- FLOCERT: | • Spinning and Knitting Division, Silvassa |
| Fair-trade Standard for Fiber Crops for Small Producer Organizations | • Weaving Division, Silvassa |
| • Process House (Normal and Wider Width), Vapi | |
| • Made ups and Garments Division, Silvassa | |
| • Knit Processing, Vapi | |
| • Terry Towel Division, Vapi | |
| • Made-ups Division, Vapi | |
| OEKO Tex Standard - Product Class I and II | • Made -ups (Product Class I and ID-Conventional and Organic - |
| OEKOTEX Organic Standard | • Woven and Knitted Fabric (Product Class I and II) Conventional and Organic |
| • Texturized Yarn (Product Class I)- Virgin Polyester | |
| • Cotton and blended yarn (Product Class I) Conventional and Organic | |
| • Terry Towels (Product Class I) Conventional and Organic | |
| • Garments (Product Class I) Conventional | |
| • Woven and Knitted Fabric- (Commission dying and printing) (Product Class I) | |
| • Woven and Knitted Micro Polyester (Product Class I) | |
| STeP Certification (Sustainable Textile Production) and Made In Green Label | • Process House, Vapi (Normal and Wider width) |
| • Knits Processing, Vapi | |
| • Terry Towel, Vapi | |
| • Made Ups, Vapi/Silvassa | |
| • Garments, Vapi/Silvassa | |
| HIGG index | • Higg FEM NW, WW |
| • Higg FSLM NW, WW | |
| • Higg FSLM Wadi TT | |
| • Higgs FSLM Spinning , Weaving ,Made-ups and Garments, Silvassa | |
| • Higgs FEM and FSLM Embroidery | |
| RegenAgri | • Spinning, Knitting, Weaving, Sales, Pretreatment, Preparatory, Weaving, Dyeing, Printing, Finishing, Manufacturing, Warehousing, Distribution and Packing |
| Walmart - Joint Quality Management | • Wider width processing |
| program - JQMP - Factory authorized to ship goods through self-inspection | • Silvassa Made-ups |
| Walmart FCCA | • Silvassa Made-ups Soft Home (Home Textile) |
| Factory Capability & Capacity Audit | • Factory ID: 28065094 |
| • Factory Address: SRV. NO. 374/2/2, VILLAGE-SAYLI, SI Silvassa INDIA |
In addition to the certifications detailed above, Alok also holds the following certifications:
• Egyptian Cotton Certificate - License for using Cotton Egyptian
• BCI - Certifications for entire supply chain of Alok industries limited.
• Better Cotton Initiative Physical Standard V1
• SUPIMA Cotton Certificate- License for using Cotton Supima
• Cotton USA - License for using Cotton USA
• Cotton made in Africa (CmiA)- Mass balance yarns produced in compliance with licensed CmiA.
• Kasturi Cotton - Mass balance yarns produced in compliance with licensed CmiA. NW,WW TT & Knits Processing Vapi / Spinning , Weaving , Made- up garments Silvassa,
• ZDHC - NW,WW , TT & Knits Processing
• Supplier to Zero - - NW,WW , TT & Knits Processing
• Textile Genisis Block Chain - NW,WW , TT & Knits Processing Vapi / Spinning , Weaving , Made-up garments Silvassa,
• SCAN - CTPAT Compliance - - NW,WW , TT & Knits Processing / Vapi Made-up garments Silvassa.
Awards received by the Company:
Aloks performance, especially in exports of cotton goods and polyester yarn, has been recognized through successive awards from TEXPROCIL and SRTEPC in the past for many years. The Company has received following export awards from TEXPROCIL on May 8, 2024 for below categories for FY 2021-22 and 22-23.
2021-2022
• Gold Plaque for Highest Exports of Other Fabrics including Embroidered Fabrics, Laces etc. in Category I
• Gold Trophy for Highest Exports of Bleached/ Dyed/Yarn Dyed/Printed Fabrics in Category II
• Gold Trophy for Highest Exports of Cotton Made- ups - Terry Towels in Category II
2022-2023
• Silver Trophy for Second Highest Exports of Bleached/Dyed/Yarn Dyed/Printed Fabrics in Category II
2025-2026
• Award from Bureau of Indian Standard - All India First License as per IS 18739 : 2024 for Made-ups ( All India First BIS License )
• Award from Bureau of Indian Standard - All India First License as per IS 18930 : 2024 Polyester Fiber Filled Pillow ( All India First & Only BIS License)
• Gold Trophy Award from Quality Circle Forum of India - For Safety Strong Viksit Bharat.
• Safety Award from National Council of India -2024.
• GIGAGURU Award for Sustainability by Walmart for 2025-2026 .
• GO TO GREEN Award for Sustainability by INDITEX fir 2025-2026.
• SUPPLIER TO ZERO , Award from ZDHC Certification body for Wastewater compliance.
• Better Cotton Initiative Physical Standard V1 - 2025-26
QCFI-Surat chapter - Global Health, Safety & Environment Council- National Safety Case Study Presentation
• Fire and Safety Team win : GOLD TROPHY as well as best safety implementation manufacturing site to the Alok-Silvassa- Fire and Safety in his segment of presentation.
• Polyester, electrical team win: GOLD TROPHY in his segment of presentation.
• Utility team win: GOLD TROPHY in his segment of presentation.
• Cotton Spinning win : GOLD TROPHY in his segment of presentation.
Subsidiaries
The Company has the following direct and step -down subsidiaries as given in Table 8 below.
Table 8: Subsidiaries, Step Down Subsidiaries and Joint Ventures
| Name of the Subsidiary | Country of Incorporation | Relationship | % of Ownership |
| (Subsidiary of) | |||
| 1 Alok Infrastructure Limited | India | Alok Industries Limited | 100% |
| 2 Alok Worldwide Limited | BVI | Alok Industries Limited | 100% |
| 3 Alok International (Middle East) FZE | Dubai | Alok Industries Limited | 100% |
| 4 Alok Singapore Pte Limited | Singapore | Alok Industries Limited | 100% |
| 5 Alok International Inc | USA | Alok Industries Limited | 100% |
| Step Down Subsidiaries | |||
| 1 Alok Industries International Ltd. | BVI | Alok Infrastructure Ltd. | 100% |
| 2 Grabal Alok International Ltd. | BVI | Alok Infrastructure Ltd. | 100% |
| 3 Grabal Alok UK Ltd. (Under Liquidation) | United Kingdom | Alok Industries International Ltd., BVI | 99.21% |
| Grabal Alok International Ltd., BVI | 0.66% | ||
| 4 Mileta a.s. | Czech Republic | Alok Industries International Ltd., BVI | 100% |
| Joint Venture Companies | (Joint Venture with) | ||
| 1 New City of Bombay Manufacturing Mills Ltd. | India | Alok Industries Limited | 49% |
| 2 Aurangabad Textiles and Apparel Parks Limited | India | Alok Industries Limited | 49% |
Textiles: Mileta
Through its step-down subsidiary, Alok Industries International Limited, BVI, Alok has a 100% stake in Mileta, a Czech-based fabric manufacturing company. Miletas facilities are located in Horice (Weaving and Administration) and Cerny Dul (Processing) in the Czech Republic.
Mileta has high end technological skill in yarn-dyed fabrics and hemming that results in higher per unit realisation. The Mileta range of products includes high quality shirting, batistes and voiles, complete line of functional table linen, bed linen and handkerchiefs. It supplies its fabrics to almost all the leading brands in Europe and USA.
For the year ended March 31, 2026, Mileta has achieved sales of Rs.189.62 crore and made a loss of Rs.(5.92) crore as compared to sales of Rs.152.27 crore and loss of Rs.(49.62) crore in March 2025.
UK Retail: Store Twenty One
Alok held a 99.87% equity stake in Grabal Alok (UK) Ltd, through its step down subsidiaries Alok Industries International Limited and Grabal Alok International Limited. Grabal Alok UK used to operate the Store Twenty One chain of value-format stores in UK.
Grabal Alok UK was taken under liquidation on July 10, 2017. The Company has provisioned for the entire investment.
Investment: Alok Infrastructure Limited
The Company made certain investments in the realty sector through its 100% subsidiary Alok Infrastructure Limited. The plan was to create value and monetise the same at the right opportunity. However, depressed market conditions in the real estate space resulted in the Company having to dispose off some of its assets at losses. The Company has also provided for the loans / advances to the extent not recoverable from its subsidiaries. The revenue from operations during the year were Rs.91.41 crore as compared to Nil in the previous year and profit for the year was Rs.27.28 crore (Previous Year loss of Rs.8.08) crore. The profit is due to sale of brought forward inventory in the real estate business.
Other Subsidiaries
The other direct and step-down subsidiaries of the Company are non-operational. The performance of all of subsidiaries and step-down subsidiaries are given in table 11.
Consolidated Results
Tables 9, 10 and 11 give the profit and loss highlights, balance sheet highlights and Company wise sales of Alok as a consolidated entity. The loss in consolidated accounts for the year was Rs.897.65 crore (previous year loss Rs.854.26) crore.
Table 9: Consolidated Profit and Loss Summary
| Particulars | 31-Mar-26 | 31-Mar-25 |
| Net Sales | 3,714.79 | 3,708.78 |
| Other Income | 74.21 | 111.07 |
| Total Income | 3,789.00 | 3,819.85 |
| Material Costs | 1,887.03 | 1,981.00 |
| People Costs | 495.57 | 497.35 |
| Other Expenses | 1,303.40 | 1,319.83 |
| Total Expenses | 3,686.00 | 3,798.18 |
| Operating EBITDA | 103.00 | 21.67 |
| Depreciation | (263.29) | (298.10) |
| Interest & Finance Costs | (614.72) | (628.17) |
| Operating (Loss) / Profit Before Tax and exceptional items | (775.01) | (904.60) |
| Exceptional Items | 30.79 | 94.14 |
| Profit Before Tax after Exceptional items | (744.22) | (810.46) |
| Add / (Less): Provision for Taxes | 1.02 | (5.02) |
| (Loss) / Profit After Tax | (743.20) | (815.48) |
| Share Of Profit / (Loss) From Associates (Net) | (0.91) | (0.96) |
| (Loss) / Profit After Minority Interest | (744.11) | (816.44) |
| Other Comprehensice Income | (153.54) | (37.82) |
| Total Comprehensive Income | (897.65) | (854.26) |
Table 10: Consolidated Balance Sheet Summary
| Particulars | 31-Mar-26 | 31-Mar-25 |
| Share Holders Fund | (21,527.79) | (20,630.12) |
| Non Current Liabilities | 25,653.08 | 25,740.81 |
| Current Liabilities | 2,349.26 | 1,619.18 |
| Total Equity and Liabilities | 6,474.55 | 6,729.87 |
| Non Current Assets | 4,992.92 | 5,132.79 |
| Curent Assets | 1,439.38 | 1,499.83 |
| Non-Current Assets held for sale | 42.25 | 97.25 |
| Total Assets | 6,474.55 | 6,729.87 |
Table 11: Company wise Sales& Profit /(Loss) in total Consolidated Performance
| Sr. Name of the company No. | FY 2025-26 | FY 2024-25 | ||
| Sales | Profit/(Loss) | Sales | Profit/(Loss) | |
| 1 Alok Industries Limited | 3,525.30 | (773.11) | 3,556.59 | (768.01) |
| 2 Alok Infrastructure Limited | 91.41 | 27.28 | - | (8.08) |
| 3 Alok International Inc. | - | (49.97) | - | 8.60 |
| 4 Mileta A.S | 189.62 | (5.92) | 152.27 | (49.62) |
| 5 Alok Industries International Limited | - | (241.18) | - | (132.13) |
| 6 Grabal Alok International Limited | - | (84.91) | - | (20.66) |
| 7 Alok World Wide Limited | - | 0.36 | - | 1.93 |
| 8 Alok Singapore Pte Limited | - | (17.02) | - | (1.00) |
| 9 Alok International (Middle East) FZE | - | 0.09 | - | 16.03 |
| Total | 3,806.33 | (1,144.38) | 3,708.86 | (952.94) |
| Effect of elimination entries | (91.54) | 246.73 | (0.07) | 98.70 |
| Consolidated (Loss) / Profit | 3,714.79 | (897.65) | 3,708.79 | (854.24) |
HUMAN RESOURCE
Alok Industries continues to recognise human capital as a strategic enabler in driving operational excellence, business transformation, and long-term competitiveness. In a highly labour-intensive and skill-driven textile industry, workforce stability, capability building, and productivity enhancement remain critical to sustaining growth and operational efficiency.
During the year, the Company strengthened its focus on building a high-quality workforce supported by structured talent acquisition, capability development, and performance-driven practices. The HR strategy has been aligned to business priorities, ensuring that the organization is equipped with the right skills, leadership capability, and cultural alignment to navigate evolving market conditions.
Overview: Building a Future-Ready Organisation
Financial year 2025-2026 has been a year of resilience, transformation, and capability building for Alok Industries Limited. Amid evolving business dynamics, the Company remained focused on strengthening its human capital by building quality talent, enhancing HR systems, and accelerating automation across processes.
With a continued emphasis on becoming a preferred employer in the textile sector, the Company has reinforced a people-centric culture that promotes meritocracy, collaboration, and performance excellence. The HR function has played a pivotal role in aligning workforce capabilities with business priorities while fostering a culture of continuous improvement and agility.
Workforce Strength & Talent Philosophy
The Company continues to maintain a strong and diverse workforce across its manufacturing and corporate locations. Alok Industries believes that its employees are its most valuable asset and remains committed to investing in their growth, well-being, and long-term development.
Key Focus Areas FY 2025-2026
• Building quality talent across functions
• Strengthening leadership and managerial capability
• Driving digital HR transformation
• Enhancing employee experience and engagement
• Fostering a high-performance culture
Learning & Development: Driving Capability and
Performance
During the year, the Company significantly strengthened its Learning & Development (L&D) agenda to build capability, agility, and leadership readiness.
A comprehensive portfolio of instructor-led and digital learning interventions was delivered across leadership, behavioral, functional, technical, and future-ready skills. These programs were designed to cater to diverse talent segments including senior leaders, managers, early-career professionals, and functional specialists.
Highlights
• Learning initiatives reached over 50% of employees across locations •
• 60%+ employees actively engaged on digital learning platform (R-University)
• Structured programs on leadership effectiveness, influencing skills, mentoring, and executive presence
• Early career programs: Campus to Corporate, Personal Branding, Design Thinking
Functional capability was further strengthened through focused programs in SAP, finance, workplace safety, and execution excellence. These initiatives have collectively fostered a culture of continuous learning and enhanced organizational effectiveness.
Aarambh: Building the Next Generation Talent Pipeline
To strengthen the future leadership pipeline, the Company launched "Aarambh" - Cadre Development Program, a structured initiative aimed at attracting and developing young talent.
Campus hiring drives were conducted across more than 15 reputed institutes, resulting in the onboarding of over 80 trainees across engineering, management, and finance disciplines.
Program Highlights
• Robust selection process including psychometric assessments and structured interviews
• Deployment across functions and locations for holistic exposure
• Structured 12-month development journey combining classroom, on-the-job, and digital learning
• Mid-term "Potential Readiness & Review" with targeted development interventions
This program reflects the Companys commitment to building a strong internal talent pipeline and nurturing future leaders.
Digital HR & Data-Driven Transformation
The Company continued to strengthen its HR digital ecosystem to enhance efficiency, transparency, and decisionmaking capabilities. The upgraded PeopleFirst platform has enabled end-to-end digitization of employee lifecycle processes, improving accessibility and service delivery.
With increasing adoption of digital platforms, HR analytics and data-driven insights are being leveraged to support workforce planning, performance tracking, and talent development decisions. These initiatives are contributing towards building a more agile, responsive, and future-ready HR function.
A key milestone during the year was the upgrade of the PeopleFirst platform, enabling seamless access to HR services through an integrated employee self-service system.
Key Outcomes
• Centralized platform for leave, payroll, tax declarations, and employee records
• Enhanced transparency and faster service delivery
• Reduced manual interventions and improved process efficiency
Additionally, the introduction of the "Choice Pay" system empowered employees to structure their compensation flexibly, enabling better tax optimization and personalized financial planning.
Performance, Rewards & Recognition
The Company continued to strengthen its Performance Management System (PMS) by integrating performance- linked incentives and recognition frameworks.
Focused initiatives were undertaken to reward high- performing employees and drive a culture of accountability and excellence, particularly across manufacturing operations.
Key Initiatives
• Performance-linked incentive structures
• Reward & Recognition programs for plant employees
• Recognition for highest production in spinning units
• Continuous engagement with shop-floor workforce
These initiatives have reinforced a performance-driven culture and enhanced employee motivation.
Driving Productivity and Shopfloor Excellence
Given the scale and nature of operations, the Company continued to place strong emphasis on improving workforce productivity and operational efficiency across manufacturing units. Focused interventions were undertaken to enhance output, optimize manpower utilization, and strengthen shopfloor discipline.
Regular engagement with shopfloor employees, structured feedback mechanisms, and recognition for production excellence have contributed to improved morale and performance orientation. Initiatives aimed at throughout improvement, cycle time optimization, and execution excellence were further reinforced during the year, aligning workforce efforts with business outcomes.
Industrial Relations
The Company continues to maintain harmonious and stable industrial relations across all its manufacturing locations. Through continuous engagement, transparent communication, and structured grievance redressal mechanisms, the Company has fostered an environment of trust and mutual respect between management and workforce.
Regular forums for interaction, including shopfloor connect sessions and employee engagement platforms, have enabled effective resolution of concerns and strengthened workforce alignment with organizational goals. The stable industrial relations climate has supported uninterrupted operations and improved productivity across locations.
Governance, Compliance and Ethical Workplace
The Company remains committed to upholding the highest standards of governance, transparency, and ethical conduct across all HR practices. Policies and processes are continuously reviewed to ensure alignment with regulatory requirements and industry best practices.
The Company continues to reinforce awareness on Prevention of Sexual Harassment (POSH), workplace ethics, and employee conduct through regular training and communication initiatives. These efforts ensure a safe, inclusive, and respectful workplace for all employees.
Employee Engagement & Workplace Culture
Employee engagement remained a key priority, with a wide range of initiatives aimed at fostering a positive and inclusive workplace culture.
Key Engagement Initiatives
• Celebration of national events: Republic Day, Independence Day, Gandhi Jayanti (Shramdaan Day)
• Festival celebrations: Holi, Ganpati, Navratri, Diwali
• International Yoga Day and wellness initiatives
• POSH awareness programs promoting safe workplaces
• Fire & Safety Week and workplace safety sessions
• "Gift of Joy" donation drive for underprivileged children
• Employee connect platforms such as "Mann Ki Baat" and shop-floor interactions
These initiatives have strengthened employee connect, improved morale, and fostered a strong sense of belonging across the organization.
Employer Branding & External Engagement (Digital & Industry Platforms)
During FY 2025-2026, Alok Industries continued to strengthen its employer brand and corporate visibility through active engagement on digital platforms, particularly LinkedIn. These platforms were leveraged to showcase the Companys people practices, innovation capabilities, sustainability initiatives, and industry participation, reinforcing its positioning as a progressive and future-ready textile organization.
The Companys communication highlighted a strong focus on innovation, sustainability, and talent development, aligned with its internal priorities. Participation in platforms such as Bharat Tex and international exhibitions enabled Alok Industries to showcase its integrated "Fibre to Fashion" capabilities and commitment to responsible manufacturing.
A key theme across communications was sustainable innovation, including eco-friendly textiles such as recycled polyester and organic materials, reflecting the Companys commitment to circular economy principles. From a people perspective, structured onboarding and cadre development initiatives, including Graduate Engineer and management trainee programs, were highlighted as part of a long-term talent pipeline strategy.
The Company also emphasized collaboration and ecosystem partnerships to strengthen the textile value chain and promote Indian textiles globally. Its communication consistently reflected a culture of growth, transformation, and collective success, enhancing brand recall, talent attraction, and stakeholder engagement.
Conclusion: Strengthening People, Systems, and Culture
The HR initiatives undertaken during FY 2025-2026 reflect Alok Industries continued commitment to building a resilient, agile, and future-ready organization. By investing in people, strengthening systems, and fostering a high- performance culture, the Company is well-positioned to support its long-term growth ambitions.
SUSTAINABLE BUSINESS PRACTICES AND CORPORATE SOCIAL RESPONSIBILITY (CSR)
Commitment to Sustainable Growth
Alok Industries Limited remains committed to integrating sustainability into its core business strategy. The Company continues to advance environmentally responsible practices while contributing meaningfully to community development.
Guided by its core values of Environment, Health, Safety, Society, and Sustainability, Alok Industries has strengthened its focus on resource efficiency, circular economy practices, and responsible manufacturing.
Environmental Sustainability Initiatives
During FY 2025-2026, the Company undertook several initiatives aimed at reducing environmental impact and improving resource efficiency.
Key Sustainability Highlights
• Strengthened waste management systems to enhance recycling and reuse
• Continued focus on water recycling and conservation
through advanced treatment systems
• Improved energy efficiency through process optimization, focused energy conservation initiatives, and effective project management, leading to a reduction in overall energy intensity
• Strengthened resource optimization across operations by enhancing efficiency in steam, power, compressed air, and fuel consumption
These initiatives reflect the Companys commitment to reducing carbon footprint, minimizing waste, and promoting circularity in operations.
Decarbonisation and Circular Economy Focus
The Company continues to align its operations with longterm sustainability goals, including reduction in carbon intensity, improvement in energy efficiency, and expansion of eco-friendly product offerings.
Sustainability considerations are increasingly being integrated into product design, raw material sourcing, and manufacturing processes, enabling the Company to create long-term value for stakeholders.
Corporate Social Responsibility (CSR): Community Impact
Alok Industries remains committed to driving inclusive growth and community development through focused CSR initiatives.
Key CSR Initiatives
• Women Empowerment: Training and livelihood opportunities in tailoring and garment manufacturing through self-help groups.
• Skill Development: Vocational training programs to enhance employability of youth in textile-related skills.
• Healthcare Support: Continued support towards healthcare infrastructure, including dialysis facilities and community health initiatives.
These initiatives are primarily focused on communities around the Companys manufacturing locations, ensuring sustainable and inclusive development.
Conclusion: Responsible Growth and Shared Value
Through its integrated approach to sustainability and CSR, Alok Industries continues to create a positive impact on the environment and society. The Company remains committed to responsible growth by balancing economic performance with environmental stewardship and social responsibility.
Risks & Risk Mitigation
RISK ASSOCIATED WITH THE COMPANY:
The Company is exposed to various risks which include factors such as rising competition in the market on the domestic and export fronts, duty free access to competing countries in US and European markets, uncertain business environment including conflict between Russia and Ukraine, rupee fluctuation, volatility in raw material prices and its availability, slowdown in demand and change in fashion trends, possibility of increase in interest rates, etc. Besides this the Company is also exposed to factors such as the change in government policies, duties & taxes, availability of power from the grid, availability of labour etc. The Company tries to mitigate these risks by taking quick actions and proactive initiatives to minimize the impact of these risks to the extent possible. Some of these threats are given below:
Raw material related Risk:
Raw material being a major cost of production, Companys operations and profitability are significantly dependent on price and timely availability of raw materials used in production process. The primary raw materials for our textile operations are raw cotton. The Company also buys cotton yarn, polyester yarn and fabrics of specifications required by customers which are not produced in its plants or in case the internal capacities are not available.
Cotton:
Being an agricultural commodity, prices of cotton are affected by a range of factors like changes in weather conditions affecting sowing, government policies and regulations. Governing taxes, tariffs, duties, subsidies, import and export restrictions on agricultural commodities, overall supply situation in the world, etc. all these influence pricing and demand supply situation in this industry. The planting of certain crops versus other uses of agricultural resources, the location and size of crop production, volume and types of imports and exports, etc. determine availability of cotton.
As given in the chart below, the cotton remained lower than Rs.60,000 per candy touching a low of around Rs.51,674 in
Nov. 25 from a level of around Rs.55,968 in July25. The year end prices were around Rs.55,000.
We expect the prices of cotton to remain range bound between Rs.55,000 - Rs.60,000 per candy in FY 2027.
Figure 13: Price Movement of Cotton MECH
The Company has an experienced team for procurement of raw cotton with a deep understanding of this natural fibre. As a Company, we have adopted various processes whereby we are expanding our sources across different supply chain intermediaries and other stake holders. Cotton being an international commodity, our focus remains optimizing domestic and international opportunities to create a competitive edge of sourcing based on landed cost.
Market related Risk:
The Companys performance is dependent upon the demand situation in individual business segments. A slowdown in demand may lead to decline in production/ sales and thus impact profitability. The value-added segments of Apparel Fabrics and to some extent Home Textiles, are also subject to trends in fashion and consumer demand. Moreover, major international incidents such as Russia-Ukraine and Israel and Gaza / Iran conflicts also impact the demand not only from the impacted economies but also the major global markets.
The USA reciprocal tariff regime, which escalated to 50% on Indian textile exports from August 2025, had a direct and material impact on the Companys export realizations through H2 FY26. However, policy uncertainty around the final Bilateral Trade Agreement remains a risk, and any adverse revision could again affect export demand and pricing for the Companys home textile and fabric businesses.
The Companys products are sold in both domestic as well as exports markets. While the companys major sales are in domestic market (about 75%- 80%), exports are also expected to remain a sizeable part (about 20%- 25%) of the Companys revenues. Indias competitive position in the US home textiles market faced particular pressure through FY26, as competing suppliers, notably Pakistan, Bangladesh, and Vietnam, operated at lower effective tariff rates during the period of elevated US duties on Indian goods. Pakistan, a direct competitor in cotton bedding and terry towels, benefited from a significantly lower tariff differential for most of FY26. The Company remains exposed to shifts in relative tariff positioning across competing supplier nations, which can rapidly redirect buyer sourcing decisions.
The Companys exports markets, predominantly USA, Europe, and Asia, are very competitive with high emphasis on timely delivery. Ongoing disruptions to Red Sea shipping routes, driven by the Houthi conflict in Yemen since late 2023, have continued to affect freight costs and transit times on key India-to-USA and India-to-Europe trade lanes through FY26. Elevated freight rates and extended lead times present a direct operational risk for the Companys export business, where reliability of supply and on-time delivery are critical to maintaining buyer relationships. The Company monitors freight market conditions and works with logistics partners to mitigate disruption, though a sustained escalation in shipping costs could impact export margin realizations. All the products of the Company are getting exported. Home textiles (bedding and towels) are the major chunk of the Companys exports constituting about 55% of the total exports.
Ability to develop products as demanded by customers and new designs development capability are critical factors for exports markets. The Company has been so far successful in meeting these demands over the years and has also won several export awards in the past instituted by the Government and Export Promotion Councils.
India no longer enjoys preferred market access in terms of concessional import duties in major exporting countries like USA & Europe. The Company is progressively widening its markets with increasing focus on Asia and some countries in Africa to mitigate the challenges that are likely to arise in the developed markets. The Company has been able to retain key customers in USA and Europe, albeit with lower volumes. Now with completion of the necessary maintenance of its plants, the Company is confident of bringing into its fold, customers who have moved away in the last few years, given the quality of the products and capacity to supply large volumes consistently.
In the domestic market as well, the Company faces competition from organized big players and the unorganized small and fragmented players. The Company has developed a good reputation amongst the domestic traders, garment manufacturers and brands due to quality, design capabilities and cost. Further, the Company has started building relationships with large retailers (physical and online) to supply fabrics and garments. The Companys operations are now getting scaled up and it is fully prepared to meet larger volumes. The Company is confident that it would regain a preferred supplier status for big brands and retailers given the quality, design capability and the capacity to provide large volumes on a consistent basis.
Financial Risk:
The company must meet its financial obligations on time. The Company has an outstanding term loan from banks of Rs.3,456.26 crores and working capital limits of Rs.300 crores as on March 31, 2026. The Company is required to meet the interest obligation on these loans periodically and also has to meet the repayment of term loan as per the terms of sanction. Moreover, the Companys loans are linked to MCLR of the sanctioning banks. Any increase in MCLR would lead to increase in interest rate for the Company on its borrowing.
The Companys present rating is AA+ stable (by CARE) which denotes high level of certainty of meeting debt obligations.
Information Technology Risks :
Information Technology (IT) serves as the backbone of the Companys operations, enabling critical business processes, data management, and advanced analytics. Given its strategic importance, IT risk remains a key focus area, and the Company continues to undertake initiatives to strengthen its technology landscape and mitigate associated risks.
The Company has successfully implemented a new instance of SAP within a modernized technology landscape, replacing the earlier obsolete and unsupported system that had been in operation since 2007. The new system went live on September 1, 2023, while historical transactions prior to this date continue to reside in the legacy environment. The following core modules have been implemented and are functioning smoothly:
• Sales and Distribution
• Materials Management
• Finance and Controlling
• Production Planning
• Quality Management
• Plant Maintenance
• Logistics and Extended Warehouse Management (EWM)
The Human Capital Management (HCM) module and Employee Self-Service (ESS) were successfully rolled out on April 1, 2024 and operated efficiently.
The legacy SAP instance, containing data from April 2007 to August 2023, has been migrated from end-of-support hardware to a new and secure infrastructure. Both the legacy and current systems are hosted at a highly secure data center of Reliance Industries Limited, supported by a robust and fully functional Disaster Recovery (DR) setup. The current IT landscape is designed to achieve nearzero Recovery Time Objective (RTO) and Recovery Point Objective (RPO), ensuring minimal downtime and negligible data loss.
Cybersecurity remains a critical priority. The Company continuously enhances its security architecture to safeguard systems against evolving threats, under the guidance of the IRM - Governance & Risk Management function of Reliance Industries Limited. Access to IT infrastructure, including servers, workstations, and network devices—is tightly controlled, continuously monitored, and regularly reviewed.
Secure remote working capabilities have been enabled through controlled access channels using Virtual Private Network (VPN), ensuring safe and reliable access to corporate systems from remote locations.
During the financial year, the Company implemented several key improvements which are functioning efficiently:
• Replacement of outdated IT systems with modern, secure infrastructure
• Strengthening and hardening of network architecture to mitigate security risks
• Implementation of Multi-Factor Authentication (MFA) and MAC address binding, where applicable
• Deployment of enhanced password management systems across applications and devices
• Continuous optimization of network bandwidth to ensure seamless connectivity across locations
• Completion of external IT General Controls (ITGC) audit by Ernst & Young for FY 2024-25; audit for FY 2025-26 is currently in progress.
Currency Risk
During FY26, the Indian Rupee depreciated approximately ~7% against the US Dollar, providing a partial tailwind on export realizations in rupee terms. The Company is subject to currency exposure risk given its significant size of exports. The companys imports are much lower as compared to its exports and thus as far as foreign currency payments are concerned, the company has a natural hedge. The Company has been sanctioned a limit to hedge the currency exposure on export receivables and covers exports to the extent needed to cover open risk (net). The Company also has in place a hedging policy to mitigate currency risks. The currency risk is thus adequately mitigated.
Government Policies:
The companys business also gets impacted by government policies like policies relating to export and import of certain products, change in customs duty structure, change in export incentives, change in GST rates, etc. For example, the cotton import duty exemption granted from August to December 2025, while providing temporary relief to spinning mills, was a short-term measure and its non-renewal continues to expose domestic spinners to global-domestic price differentials. The withdrawal of the Anti-Dumping Duty on certain polyester imports has intensified competitive pressure in the synthetic segment. On the positive side, the PM MITRA Textile Parks scheme and continued PLI allocations for MMF and technical textiles signal longterm policy support for integrated manufacturers. The evolving US-India Bilateral Trade Agreement, if concluded favorably, could materially improve duty competitiveness for the Companys home textile exports to the US, its largest export market. Similarly, other government policies such as policies relating to labor etc. also have their impact in overall competitiveness of the Company as compared to the competing countries in the international markets. The Company monitors the changes in government policies on day-today basis and forms appropriate strategies to mitigate the impact on the Company while ensuring adequate compliances.
Outlook
The macroeconomic environment is showing gradual improvement. Inflationary pressures in the US, EU, and UK have eased, supporting a cautious recovery in consumer demand across the Companys key export markets. Input cost dynamics remain a key variable for FY27 amid global macroeconomic situation. The US-India bilateral trade agreement negotiations are ongoing, which if finalized, will improve the Companys export competitiveness in the US market, its single largest export destination. Bangladeshs scheduled graduation from LDC status in November 2026 is expected to further level the competitive field in EU and UK markets. Domestically, rising incomes, urbanization, and GST rationalization continue to support demand growth. We, therefore, expect overall market situation to improve in FY 2027 and with the gradual revival of demand, our operating rates of the downstream businesses is expected to improve during the year. This along with several measures undertaken by the Company to improve quality, sales realization and cost reduction are expected to yield positive results during the year. The strong support from our promoters RIL is also to be considered as an important factor for our solidity. We therefore look at the future optimistically.
Internal Control and Adequacy
The Company has in place a well-established framework of internal control systems which are commensurate with the size and complexity of its business. The Company has an independent internal audit function covering major areas of operations and the same is carried out by an external Chartered Accountant firm engaged for this purpose.
Cautionary Statement
Statements in this Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be forward looking statements within the meaning of applicable laws and regulations. These statements have been based on current expectations and projections about future events. Wherever possible, all precautions have been taken to identify such statements by using words such as anticipate, estimate, expect, project, intend, plan, believe and words of similar substance in connection with any discussion of future performance. Such statements, however, involve known and unknown risks, significant changes in political and economic environment in India or key markets abroad, tax laws, litigation, labour relations, exchange rate fluctuations, interest and other costs and may cause actual results to differ materially. There is no certainty that these forward-looking statements will be realised, although due care has been taken in making these assumptions. There is no obligation to publicly update any forward-looking statements, whether related to new information, future events or otherwise.
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