Faze Three Limited

FTL's capital structure continues to remain comfortable, supported by its healthy net worth base and sustained accruals, translating into overall gearing remained and TOL/TNW at 0.69x and 0.89x, respectively, as on March 31, 2026 (PY: 0.52x and 0.84x, respectively), despite increase in borrowings to fund incremental working capital requirements. Its debt coverage metrics also remain adequate, despite some moderation in FY26 due to pressure on profitability owing to the heightened tariffs levied

The company’s major customers include global big-box retailers in the US, the UK, and Europe such as Walmart, Target, TJMaxx and Action, among others. The company benefits from its established and long-term relationships with key customers, which are expected to result in high repeat orders and increasing wallet share, supporting revenue visibility. FTL’s revenue is fairly diversified across customers with no single customer accounting for over 20% of revenue and the contribution from top 10 cus

The company has a wide product portfolio, including bathmats, bath rugs, blankets, curtains, patio mats, chair pads, carpets, beach towels, and other top-of-the-bed products, with top five products accounting for 50-60% of total operating income in the last four years. FTL invested over ₹300 crore in the last four years towards building additional capacities for existing and new products, funded mainly through internal accruals. In the last two years, the company ramped-up sales for new product

FTL was founded by Ajay Anand in 1985, who currently serves as its Chairman and Managing Director. The promoter group also includes his brother, Sanjay Anand and Vishnu Ajay Anand since 2017. FTL’s promoters have over three decades of diverse knowledge and experience in the home and technical textiles industry and international marketing of home interiors and furnishings fabrics and made ups. Promoters are supported by a team of qualified senior managerial personnel.

The company depends on exports to the US, which is the world’s largest home textile market, for over 50% of its revenue, exposing its revenue and profitability to disruptions from evolving geopolitical landscape. The tariffs levied by the US Government on imports from India impacted the company’s profitability in FY26 owing to partial absorption of incremental costs. The West Asia conflict leading to a steep spike in fuel prices and logistics costs could have a transient impact on FTL’s margins

The company’s revenue and earnings remain exposed to risks arising from volatility in cotton and polyester prices. However, the risk is mitigated to a certain extent by the order-based procurement policy, which aids in passing on the raw material price volatility to customers, despite with a lag of two quarters or so. The company is inherently exposed to foreign currency fluctuation risk due to its export-oriented business. However, it has a defined hedging policy which mitigates the risk to an