Nitin Spinners Limited

NSL was promoted by the Nolkha family in 1992. Late R L Nolkha was first-generation entrepreneur and currently his sons are looking after the company’s operations. Dinesh R Nolkha, Chairman and Managing Director, has around three decades of industrial 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release experience and handles yarn marketing, finance, and general administration. He is Vice Ch

NSL has an established track record of over three decades in the Indian textile industry. The company commenced operations in 1992 with a modest capacity of 384 rotors at Bhilwara, Rajasthan. It has since expanded across open-end yarn, ring-spun yarn, blended yarn, knitted fabrics, and finished woven fabrics. NSL’s operations are integrated, supported by modern spinning, weaving, dyeing, finishing, and printing facilities with zero liquid discharge water treatment plant. As of March 31, 2026, NS

NSL has a moderately diversified product profile comprising cotton and blended yarn, knitted fabrics, and finished woven fabrics. Cotton and blended yarn remained the largest revenue contributor, accounting for 74% of sales in FY26 (FY25: 73%). This was followed by woven fabrics at 17% in FY26 (FY25: 17%) and knitted fabrics at 4% in FY26 (FY25: 5%). NSL produces various grades of cotton yarn, with counts ranging from 6s to 100s, and continues to focus on value-added products catering to woven

NSL has a diversified and reputed customer base, with its top 10 customers contributing ~22% of total income in FY26 (FY25: 24%). NSL supplies its products to some renowned brands such as Raymond, Arvind, Donear, D’Decor, Siyaram’s, Welspun, and others, in domestic market and Zara, United Colors of Benetton, Hennes & Mauritz (H&M), and Marco Polo, in the international market. Long-standing relationships with these customers support repeat orders and provide revenue visibility.NSL has a well-

NSL’s revenue grew at a compounded annual growth rate (CAGR) of ~15% for five-years ended FY26. Total operating income (TOI) remained largely stable at ₹3,214 crore in FY26 (FY25: ₹3,306 crore), primarily due to global disruptions, uncertainty around the US tariffs and pressure on yarn spreads, as international cotton prices remained lower than domestic prices for part of the year. The knitted fabric segment was particularly impacted by elevated the US tariffs, leading to a ~25% decline in knitt

NSL is expanding its cotton yarn, processed weaving fabric, and renewable power capacity at its existing locations in Rajasthan. The capacity addition is expected to meet increasing demand for its products, penetrate newer geographies, aid widening product portfolio, and provide cost advantage through economies of scale. The company is also planning to diversify into specialty yarns, dyed yarns, dyed fabrics, and high-end fashion fabrics. The project’s estimated cost (including margin money for

NSL’s profitability remains susceptible to volatility in raw cotton prices, which form ~60%-70% of its cost of production. Cotton prices are influenced by factors such as acreage, crop yield, monsoon conditions, domestic and international demand-supply dynamics, inventory levels, and government-declared minimum support price (MSP). Raw cotton prices have been volatile in the last couple of years, which translates to risk of inventory losses for industry players, though at times it also leads to

NSL operates in a cyclical and fragmented textile industry marked by presence of many organised and unorganised players , leading to high competition in the industry. Apart from competition, the commoditised nature of cotton yarns also limits the pricing ability of the industry players to an extent. The textile industry is inherently cyclical in nature and closely follows macroeconomic business cycles. Raw material prices and finished goods are also determined by global demand-supply scenario, h

Indian cotton yarn exports remain a key demand driver, historically accounting for ~25-35% of domestic production. Indian cotton yarn exports increased by 3% in FY26 to 11.83 lakh tonnes, reversing the decline seen in FY25. The recovery was sharper in Q4FY26, with exports increasing 11% y-o-y to 3.38 lakh tonnes, mainly supported by strong revival in demand from China. Demand improved across both domestic and export markets, aided by easing US tariff-related uncertainties, better order flows