The global economy exhibited resilience during FY 2025-26 despite persistent geopolitical tensions, elevated trade uncertainties, and volatile commodity prices. According to the International Monetary Fund (IMF), global economic growth is estimated at approximately 3.0% for financial year 2025-2026, supported by easing inflation, gradual monetary policy normalization, and improving consumer demand across major economies.
Inflationary pressures moderated across several developed economies, enabling central banks in the United States, Europe and other regions to initiate measured interest rate reductions. Nevertheless, ongoing geopolitical conflicts in Eastern Europe and the Middle East, disruptions in global shipping routes, increasing trade protectionism, and fluctuations in energy prices continued to impact global supply chains and business confidence.
Manufacturing activity witnessed gradual recovery led by improved industrial production in Asia and renewed demand for consumer products. Sustainability, digital transformation, automation, artificial intelligence and supply chain diversification remained key priorities for global businesses. International buyers increasingly emphasized ESG compliance, traceability and environmentally responsible sourcing while selecting suppliers.
Although short-term uncertainties persist, the medium-term outlook for global trade remains encouraging, particularly for countries capable of offering competitive manufacturing, quality products and resilient supply chains.
India continued to be one of the fastest-growing major economies during FY 2025-26. Supported by strong domestic consumption, sustained government capital expenditure, favourable demographic trends and continued policy reforms, Indias economy maintained healthy growth momentum despite global economic headwinds.
The Reserve Bank of India and the International Monetary Fund have projected Indias GDP growth at around 6.5% for FY 2025-26, reaffirming the countrys position as a preferred investment destination. Government initiatives including Make in India, Digital India, PM Gati Shakti, Production Linked Incentive (PLI) Schemes and infrastructure development continued to strengthen the countrys manufacturing ecosystem.
Growth in private consumption, expansion of the services sector, increasing formalisation of the economy, stable banking sector, rising tax collections and improving employment generation further supported economic activity. Continuous investment in roads, railways, logistics, ports and industrial corridors has enhanced Indias competitiveness and created favourable conditions for manufacturing industries, including textiles.
The Governments continued emphasis on MSME development, ease of doing business, export promotion and digital adoption is expected to provide long-term benefits to domestic manufacturing companies.
Figure for 2026 is an estimate. FY= Fiscal Year
Indias macroeconomic fundamentals remained robust throughout FY 2025-26. Inflation moderated within the Reserve Bank of Indias tolerance band, supported by improved food supply and prudent monetary policies. The banking sector remained well-capitalized with improving asset quality, while credit growth continued to support industrial expansion.
Manufacturing activity remained stable with improving capacity utilization and sustained investment across several sectors. The Governments continued focus on public infrastructure spending generated significant multiplier effects across industries, including textiles, logistics and consumer goods.
The Indian Rupee remained relatively stable despite global currency volatility. Export-oriented industries continued to face pricing pressure due to global demand fluctuations; however, Indias diversified export markets and policy support helped mitigate these challenges.
Digital payments, e-commerce penetration and organised retail continued to expand rapidly, creating new growth opportunities for consumer-focused industries. Rising disposable income, urbanisation and changing consumer preferences are expected to sustain demand for branded apparel and lifestyle products over the medium term.
Overall, Indias strong macroeconomic environment, favourable demographic profile and policy support continue to position the country as one of the most attractive manufacturing destinations globally
The Indian textile and apparel industry remains one of the countrys largest employment generators after agriculture and continues to play a vital role in the nations industrial and export economy. The sector contributes nearly 2.3% of Indias GDP, around 13% of industrial production, and approximately 12% of the countrys exports, while providing direct employment to more than 45 million people.
The industry witnessed gradual recovery during FY 2025-26 as global demand improved following inventory corrections in major international markets. Domestic demand remained healthy, supported by increasing disposable income, urbanisation, organised retail expansion and growing consumer preference for branded products.
Government initiatives such as the Production Linked Incentive (PLI) Scheme, PM MITRA Mega Textile Parks, National Technical Textiles Mission, ATUFS, and continued support for MSMEs are expected to enhance Indias global competitiveness and strengthen integrated textile manufacturing.
A significant structural shift is taking place from traditional cotton-based textiles toward manmade fibres (MMF), technical textiles, functional fabrics, and value-added apparel. Sustainability has emerged as a major growth driver, with increasing adoption of organic cotton, recycled fibres, water-efficient processing technologies and environmentally responsible manufacturing practices.
Despite these opportunities, the industry continues to face challenges arising from fluctuating cotton prices, rising labour costs, increasing power tariffs, import competition from neighbouring countries, supply chain disruptions and changing global trade dynamics.
Nevertheless, Indias integrated value chain, abundant skilled workforce, strong domestic market and supportive policy framework position the textile sector for sustainable long-term growth.
INNERWEAR & COMFORT WEAR INDUSTRY
Indias innerwear and comfort wear market continues to be one of the fastest-growing segments within the apparel industry. The market is witnessing increasing consumer preference for premium, comfortable, fashionable and functional products.
Growth is being driven by rising disposable income, greater awareness regarding personal hygiene, increasing participation of women in the workforce, urbanisation, expanding organised retail, and rapid penetration of e-commerce platforms.
Consumers increasingly prefer branded products offering superior comfort, moisture management, antibacterial properties and premium fabrics. Product innovation involving stretch fabrics, bamboo fibre, organic cotton, modal, seamless construction and performance textiles is becoming an important competitive differentiator.
The growing popularity of athleisure and work-from-home lifestyles has significantly increased demand for lounge wear, active wear and multifunctional garments.
The organised branded market continues to gain market share over the unorganised sector as consumers increasingly value quality, durability and trusted brands. This transition presents significant growth opportunities for established domestic manufacturers with recognised brands and strong distribution networks.
The long-term outlook for the Indian textile and apparel industry remains positive. India is expected to strengthen its position as a global sourcing destination due to its large manufacturing base, skilled workforce, supportive government policies and growing domestic demand. The industry is expected to witness increasing investments in:
? Premium innerwear and comfort wear
? Athleisure and performance apparel
? Technical textiles
? Sustainable and eco-friendly products
? Smart textiles
? Digital manufacturing technologies
? Automation and Industry 4.0
? Direct-to-consumer (D2C) brands
? Export-oriented manufacturing
For companies like Jet Knitwears Limited, opportunities exist in expanding branded product offerings, entering new geographical markets, strengthening digital sales channels, developing sustainable product lines, enhancing operational efficiencies and leveraging innovation to create differentiated products.
The Companys continued focus on quality, customer satisfaction, product innovation and brand development is expected to support sustainable growth while creating long-term value for all stakeholders
? The Indian government has several portals for the welfare of laborers. Udyam, NCS, e-Shram, and ASEEM are the government portals that help people in finding employment in various MSMEs. All these portals are now interlinked to help business owners in fi nding manpower.
? The Production-Linked Incentive (PLI) scheme has attracted investments of around ?19,000 crore into the textile sector, creating approximately 7.5 lakh jobs. With a focus on man-made fibres (MMF) and technical textiles, the scheme is driving innovation and scalability-key growth areas that are positively impacting the innerwear segment.
? The Union Finance Minister has emphasized the development of infrastructure and the setting of centralized Effluent treatment plants for the textile industry under IPDS and CETP. So, funds are allotted in the current budget for these purposes, for the b est interest of this industry in India.
? Production-linked incentive (PLI) scheme launched for promoting the apparel industry has attracted investment of Rs. 19,000 Crores approximately and generate almost 7.5 Lakhs new employment opportunities.
? With regard to Make In India initiative and to boost employment generation through setting up of 7 (Seven) PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites with world class infrastructure.
? Increase in fashion and brand consciousness making consumers more aspirational and discerning; increasing urban women population and women corporate workforce has proved to be beneficial for women segment of apparel market.
? Today with technological advancements, we notice a wide array of comfortable fabrics being used. From nylon to organic cotton, spandex blend cotton fabric to modal and from micro-fiber to more durable material. This has led to product innovations in the industry.
The post pandemic effects and multiple global as well as domestic factors have slowed down the commercial activities. The lack of funds to buy raw materials for production was another drawback in this industry. Political tensions or militant activities in some places hinder the smooth operations of the textile industry there. Many textile companies face severe labor shortages and a lack of regular transportation if their factories are located in remote places. The inflation in the Indian economy results in frequent demands among laborers for salary hikes. Thus, industry owners do not find the means to expand their business and compete with global textile leaders from other countries. The high cost of power in India is another hindrance to textile production. Most modern machines are power-driven, which raises the overall production costs for business owners. Fluctuating prices of the raw materials such as cotton, yarn, and chemicals, and thereby raising price of the finished products not be viable in a competitive market. Ever changing fashion needs of consumers put industry players in a pressure to constantly adapt emerging fashion trends in the markets. Several International apparel brands are entering into India as the country is emerging as one of the largest apparel market in the world and on the other hand new start ups are entering market with aggressive marketing and discounts.
The company is engaged in the business of manufacturing garments. Therefore there is no separate reportable segment. However, your Company have been marketing products through strong brands JET and LYCOT. JET is 36 years old whereas LYCOT is 17 years old. Your Company believes in providing those products to our consumers that are Skin Friendly and Anti-Bacterial. Your Company markets its products through various brands like Lycot Australia, Jet, Jet Eco, Fresh-Long, Boski and Take-off. Various product manufactured by our Company are Vest, Underwear (including Boxers, Briefs & Trunks), Brassiere, Panties, Socks, T-shirts, Thermals, Lowers, etc. Our Company caters to everyday range of comfortable Innerwear, Socks, T-shirts and Thermals which are available in superior cotton fabrics, vibrant styles and are ideally suited for men and women. Product wise Performance during the year is as under:
(In Lakhs)
| S.NO | PRODUCT WISE DETAILS | 2025-26 | 2024-25 |
| 1. | Hosiery Products | 1857.69 | 2206.38 |
| 2. | Winter Garments | 137.98 | 185.70 |
| 3. | Ladies Garments | 317.38 | 333.77 |
| 4. | Cotton Cloth | 9.55 | 80.33 |
| 5. | Jeans | 12.54 | 11.29 |
| Total | 2335.14 | 2817.46 |
The Company has robust risk management procedures to identify and evaluate risks on an ongoing basis. The Company believes that risks that are well managed can create opportunities, whereas risks that are incorrectly managed could lead to financial and reputation loss. Appropriate steps are taken in consultations
with all concerned to mitigate such risks. The following are some of the key risks as perceived by the Company:
The ability to retain existing talent and attract new talent assumes crucial importance. The industry is growing at a fast pace, in a highly labour intensive sector and demand for experienced and trained manpower is outstripping supply. The Company has created long term plans with the objective of motivating employees to create a sense of belonging and a feel good environment. The company is also aggressively taking steps to monitor and improve productivity, which will mitigate the impact of labour and material cost increases to some extent.
Slow economic growth in the international or national economies and uncertainties regarding future economic prospects, among other things, could affect consumer discretionary spending and therefore can impact business. Through brand strengthening and expanding presence across the globe the Company endeavours to mitigate the impact of this risk as far as possible.
The availability of raw materials at reasonable rates is one of the main concerns of the company. However the company is confident that increases in raw material cost, if and when they occur, can be passed on to consumers because of the strong pricing power of its brands. The company is also aggressively taking steps to monitor and improve productivity, which will mitigate the impact of labour and material cost increases to some extent.
The future of the textile market and the innerwear category is getting competitive domestically as well as globally. Your Company operates from Kanpur with having dealers/vendors in Uttar Pradesh. Enhancing our presence in additional region will enable us to reach out to a larger population. Further, our Company believes in maintain long term relationship with our customers by adding value through innovations, quality assurance and timely delivery of our products which will ultimately enhance our sales.
Management has overall responsibility for the Companys internal control system to safeguard the assets and to ensure reliability of financial records. The Company has an adequate internal control system commensurate with its size and nature of its business. The Company has a detailed budgetary control system and the actual performance is reviewed periodically and decisions taken accordingly. The Company also conducts regular internal audits to test the adequacy and efficacy of its internal control processes and bring out any deviation to internal control procedures.
In order to achieve operational excellence and maintain a competitive edge, the Company invests in building and nurturing a strong talented pool by instituting best practices with respect to its employees. The Company makes substantive and sustained efforts towards building an eco-system which promotes the development and advancement of all its employees and employees feel a sense of belonging to the Company and camaraderie with their team, and aspire for individual excellence while contributing to achieve departmental objectives. The Company has strength of about 48 employees as on March 31, 2026.
In compliance with the requirement of the Listing Regulations, the key financial ratios of the Company along with explanation for significant changes which has been provided hereunder:
| S.no. | Particulars | 2025-2026 | FY 2024-25 | % Variance | Reason for variation of more than 25% |
| (i) | Debtors Turnover | 1.23 | 1.69 | -27.21% | Debtors Turnover decrease due to slower recovery from the debtors |
| (ii) | Inventory Turnover | 1.38 | 1.54 | -10.38% | - |
| (iii) | Return on equity ratio | 0.24 | 1.53 | -84.31% | Return on equity decreased due to significant decrease in PAT |
| (iv) | Current Ratio | 2.34 | 2.30 | 1.74% | - |
| (v) | Debt Equity Ratio | 0.69 | 0.70 | -1.47% | - |
| (vi) | Operating Profit Margin (%) | 6.10 | 5.39 | +13.17% | - |
| (vii) | Net Profit Margin (%) | 0.24 | 1.23 | -80.48% | Net profit decreased due to decrease in revenue. |
| (viii) | Return on Net Worth (%) | 7.02 | 9.26 | -24.19% | Due to decrease in revenue and profit, EBITDA decreased. |
Statements in the Management Discussion Analysis describing the Companys objectives, projections, estimates and expectations may be considered as forward looking statements within the meaning of applicable securities laws and regulations. The Company cannot guarantee that these assumptions are accurate or will be realized. Actual results could differ materially from those expressed or implied. The Company assumes no responsibility in respect to the forward looking statements herein which may undergo changes in future on the basis of subsequent developments, information or events.
(Sources & References: Ministry of Textiles, Indian Textile Journal, Department of Industrial Policy and Promotion, Press Information Bureau, KPMG Deloitte analysis, Pib, Ibef, fashizna
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