Loyal Textile Mills Limited

Founded in 1956 by Late Karumuttu Thiagaraja Chettiar, LTM is one of the oldest integrated textile mills in south India, havi ng over seven decades of track record. LTM has an established presence in international and domestic markets. LTM has a spinning unit in Sattur, Tamil Nadu and processing unit in Cuddalore, Tamil Nadu. During FY25, the company derived 14% of income from Yarn, 53% from knitted and woven fabrics and 33% from garments. LTM has also made significant investments in windmills,

LTM has different product lines, including yarn, fabrics (woven and knitted), home textiles and garments. Yarn includes pure organic yarn (100% cotton), blended yarn made of polyester, bamboo and linen, among others. Woven fabrics include Plain, Twill, Drill, Gabardine, and Oxford weave in widths ranging from 50 inches to 134 inches, whereas knitted fabrics include Single jersey, Rib, Inter-lock, and Cuff 20” to 36” diametre. In the recent past, the company carried out major restructuring works

The Loyal group has established a significant brand image in the textile export market, enabling export of its own products and trading yarn under the ‘Loyal’ brand. LTM generates ~50-60% of its sales from exports markets, well-spread across the USA, Europe, Middle East and Asia. However, exports declined to 57% of TOI in FY25 (PY: 39%) and gradually improved to 65% in H1FY26. LTM has well-diversified client base across geographies and its top 10 clients accounted for 49.30% of its total sales i

Liquidity is stretched marked by operating losses in FY25 and H1FY26, however supported by proceeds from asset sale and subsidies from Government in the past. LTM does not have long term debt obligations. The cash balance stood moderate at ₹18.40 crore as on Sep 30, 2025. The average inventory days in last two fiscal year(s) remained high at 167 days. The credit period given by LTM varies up to 60 days. Most of the export credits are backed by LCs; hence, the risk on receivables remains

Environment, social, and governance (ESG) risks: Not applicable 2 CARE Ratings Ltd. Press Release Applicable criteria Definition of Default Liquidity Analysis of Non-financial sector entities Rating Outlook and Rating Watch

Total operating income 944.44 687.47 251.83 PBILDT* -31.26 -66.38 -16.46 Profit after tax (PAT) -42.95 -54.68 -34.80 Overall gearing (x) 2.15 1.76 NA Interest coverage (x) -0.53 -1.16 NA A: Audited UA: Unaudited NA: Not available; Note: these are latest available financial results *PBILDT: Profit before interest, lease rentals, depreciation and tax

Total Operating Income (TOI) moderated by 27% to Rs.687.47 crore in FY25 over FY24 due to company’s conscious effort to consolidate operations and discontinue non-viable and commoditized product lines. It has also reported TOI of Rs.251.83 crore in H1FY26 (UA) as compared to Rs.390.08 crore in H1FY26 (UA). LTM reported operating losses (before interest, depreciation and tax) of Rs.66.38 crore in FY25 primarily on account of lower price realisation in yarns & woven fabric, restructuring-related c

LTM does not have long-term debt obligations. The company substantially reduced the working capital borrowings from Rs.413.30 crore as on March 31, 2025 to Rs.330.94 crore as on September 30, 2025 through asset sale and liquidating inventories. Despit e the reduction in working capital borrowings, the capital structure continued to remain moderate with overall gearing of 1.76x (PY : 2.15x) as on March 31, 2025. The debt protection metrics remain weak with cash losses of Rs.48.32 crore in FY25 an

Cotton, the key raw material, exhibited high price volatility in the past, which impacts the company’s profitability. Prices of cotton and yarn are governed by factors such as area under cultivation, monsoon, export quota by Government and international demand-supply situation, among others. Although LTM’s integrated operations and long -term supplier relationships provide some cushion, the company remains exposed to cyclical movements in raw material prices.

Long track record of operations of the company with vertically integrated textile mills Founded in 1956 by Late Karumuttu Thiagaraja Chettiar, LTM is one of the oldest integrated textile mills in south India, havi ng over seven decades of track record. LTM has an established presence in international and domestic markets. LTM has a spinning unit in Sattur, Tamil Nadu and processing unit in Cuddalore, Tamil Nadu. During FY25, the company derived 14% of income from

LTM has different product lines, including yarn, fabrics (woven and knitted), home textiles and garments. Yarn includes pure organic yarn (100% cotton), blended yarn made of polyester, bamboo and linen, among others. Woven fabrics include Plain, Twill, Drill, Gabardine, and Oxford weave in widths ranging from 50 inches to 134 inches, whereas knitted fabrics include Single jersey, Rib, Inter-lock, and Cuff 20” to 36” diametre. In the recent past, the company carried out major restructuring works

The Loyal group has established a significant brand image in the textile export market, enabling export of its own products and trading yarn under the ‘Loyal’ brand. LTM generates ~50-60% of its sales from exports markets, well-spread across the USA, Europe, Middle East and Asia. However, exports declined to 57% of TOI in FY25 (PY: 39%) and gradually improved to 65% in H1FY26. LTM has well-diversified client base across geographies and its top 10 clients accounted for 49.30% of its total sales i