Value Added Product Mix Shift
Expected: FY27MEDIUM confidence
What: Product diversification: Higher-count combed yarns
Nahar Spinning Mills Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +15.6%Average6w StreakRe-Entry
In , Nahar Spinning Mills Ltd (Textiles - Hosiery/Knitwear) is outperforming Nifty 500 with +15.6% relative strength. Fundamentals: Average. On a 6-week streak.
Nahar Spinning Mills Ltd Key Facts
- PE Ratio
- 40.3x
- Market Cap
- ₹909 Cr
- PAT Growth YoY
- +5%
- Revenue Growth YoY
- +5%
- OPM
- 6.0%
- RS vs Nifty 500
- +15.6%
PE: Mid ContractionRiding Wave
What's Happening
💪Debt reduced 23% YoY — balance sheet strengthening
💰Trading 89% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Value Added Product Mix Shift
FY27MEDIUM
2. Regulatory Approval Or License Win
Late 2026MEDIUM
Key Risks
1. Middle East conflict impacting logistics and energy costs for a company with 50%
HIGH2. Narrowing spreads between raw cotton costs (60% of total costs) and finished yar
HIGH3. Higher freight rates and insurance surcharges due to regional instability in tra
MEDIUMSector-Specific Signals
Export Dependency49.7%
Raw Cotton Cost Share60%
Power and Fuel ExpensesINR 228.61 Cr
Price-to-Book Ratio0.52
Key Numbers
PAT Growth YoY
+5%
Stable
Revenue YoY
+5%
Inflection Up
Operating Margin
6.0%
-200 bps YoY
PE Ratio
40.3
Current Price
₹252
Dividend Yield
0.40%
Fundamental Score
41/100
Average
3Y PAT CAGR
-42%
Market Cap
909 Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Nahar Spinning Mills Ltd's Earnings Accelerating?
Based on Q3 FY26 (web) earnings • Updated Apr 19, 2026
Regulatory Approval Or License Win
Expected: Late 2026MEDIUM confidence
What: FTA implementation: UK FTA late 2026
What Are the Key Risks for Nahar Spinning Mills Ltd?
Earnings deceleration risks from management commentary
Middle East conflict impacting logistics and energy costs for a company with 50%
HIGHTrigger: Middle East conflict impacting logistics and energy costs for a company with 50% export dependency.
Management view: Monitoring supply chain stability and energy prices.
Monitor: geopolitical
Narrowing spreads between raw cotton costs (60% of total costs) and finished yar
HIGHTrigger: Narrowing spreads between raw cotton costs (60% of total costs) and finished yarn realizations.
Impact: PAT impact: INR -12.92 Cr loss
Management view: Evaluating optimizations in energy mix and product diversification.
Monitor: commodity
Higher freight rates and insurance surcharges due to regional instability in tra
MEDIUMTrigger: Higher freight rates and insurance surcharges due to regional instability in transit hubs.
Management view: Not Given
Monitor: logistics
What Did Nahar Spinning Mills Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
INR 702.56 Cr
YoY -13.5%QoQ -9.52%
Revenue declined due to sluggish off-take from key export destinations in the EU and US where high inventory levels dampened procurement.
EBITDA
INR -8.20 Cr
Margin -1.17%
Operating profit turned negative as the company was unable to pass on increased logistics and synthetic fiber costs to international buyers.
PAT
INR -12.92 Cr
YoY -1810.8%QoQ -178.45%
The company reported a substantial net loss compared to a profit in the previous year, reflecting intensified structural pressure in the spinning sector.
Other Highlights
• Nine-month net loss narrowed to INR 1.60 Cr from INR 10.06 Cr in the previous year.
• Total comprehensive loss for Q3 widened to INR 34.28 Cr due to other comprehensive losses.
• Interest expenses accounted for 2.26% of operating revenues in the trailing period.
What Sector Metrics Matter for Nahar Spinning Mills Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Export Dependency
49.7%
Why: High reliance on international markets makes the company vulnerable to global supply chain disruptions.
Raw Cotton Cost Share
60%
Why: Cotton is the primary raw material, and its price volatility directly impacts the cost structure.
Power and Fuel Expenses
INR 228.61 Cr
Why: Energy prices remain high due to regional conflicts, inflating operating expenses.
Price-to-Book Ratio
0.52
Why: The low valuation reflects market concerns over cyclical risks and current loss-making status.
Employee Cost Share
9.68%
Why: Fixed costs like labor remain a significant portion of the revenue base.
What Is Nahar Spinning Mills Ltd's Management Guidance?
Forward-looking targets from management for Q4 FY26
OPM Guidance
8%
Revenue Outlook
285 Cr
Margin Outlook
Analysts project EBITDA margin of 8% for Q4 FY26.
Management Tone: CAUTIOUS
How Fast Is Nahar Spinning Mills Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +5% | +5% | Inflection Up |
| PAT (Net Profit) | +5% | -42% | Stable |
| OPM | 6.0% | -200 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Other Top Textiles - Hosiery/Knitwear Stocks Beating Nifty 500
Frequently Asked Questions: Nahar Spinning Mills Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Nahar Spinning Mills Ltd's latest quarterly results?
Nahar Spinning Mills Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +4.5% (stable)
- Revenue Growth YoY: +4.7%
- Operating Margin: 6.0% (stable)
Is Nahar Spinning Mills Ltd's profit growing or declining?
Nahar Spinning Mills Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +4.5% (latest quarter)
- PAT Growth QoQ: +276.9% (sequential)
- 3-Year PAT CAGR: -41.7%
- Trend: Stable — consistent growth pattern
What is Nahar Spinning Mills Ltd's revenue growth trend?
Nahar Spinning Mills Ltd's revenue growth trend is turning around (inflection up).
- Revenue Growth YoY: +4.7%
- Revenue Growth QoQ: +30.4% (sequential)
- 3-Year Revenue CAGR: +4.8%
How is Nahar Spinning Mills Ltd's operating margin trending?
Nahar Spinning Mills Ltd's operating margin is stable.
- Current OPM: 6.0%
- OPM Change YoY: -2.0% basis points
- OPM Change QoQ: +4.0% basis points
What is Nahar Spinning Mills Ltd's 3-year profit and revenue CAGR?
Nahar Spinning Mills Ltd's long-term compounding rates
- 3-Year Profit CAGR: -41.7%
- 3-Year Revenue CAGR: +4.8%
Is Nahar Spinning Mills Ltd's growth accelerating or decelerating?
Nahar Spinning Mills Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: +84.5% bps
- Sequential Acceleration: +100.0% bps
What is Nahar Spinning Mills Ltd's trailing twelve month (TTM) performance?
Nahar Spinning Mills Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹21 Cr
- TTM PAT Growth: +61.5% YoY
- TTM Revenue: ₹3,000 Cr
- TTM Revenue Growth: -2.0% YoY
- TTM Operating Margin: 4.7%
Is Nahar Spinning Mills Ltd overvalued or undervalued?
Nahar Spinning Mills Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 40.3x
- Price-to-Book: 0.6x
What is Nahar Spinning Mills Ltd's current PE ratio?
Nahar Spinning Mills Ltd's current PE ratio is 40.3x.
- Current PE: 40.3x
- Market Cap: 909 Cr
- Dividend Yield: 0.40%
How does Nahar Spinning Mills Ltd's valuation compare to its history?
Nahar Spinning Mills Ltd's current PE is 40.3x.
- Current PE: 40.3x
- Valuation Assessment: Significantly Overvalued
What is Nahar Spinning Mills Ltd's price-to-book ratio?
Nahar Spinning Mills Ltd's price-to-book ratio is 0.6x.
- Price-to-Book (P/B): 0.6x
- Book Value per Share: ₹419
- Current Price: ₹252
Is Nahar Spinning Mills Ltd a fundamentally strong company?
Nahar Spinning Mills Ltd is rated Average with a fundamental score of 41.31/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +4.7% (10% weight)
- PAT Growth YoY: +4.5% (10% weight)
- PAT Growth QoQ: +276.9% (10% weight)
- Margins stable (10% weight)
Is Nahar Spinning Mills Ltd debt free?
Nahar Spinning Mills Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹983 Cr
What is Nahar Spinning Mills Ltd's return on equity (ROE) and ROCE?
Nahar Spinning Mills Ltd's return ratios over recent years
- FY2024: ROCE 1.0%
- FY2025: ROCE 4.0%
- FY2026: ROCE 3.0%
Is Nahar Spinning Mills Ltd's cash flow positive?
Nahar Spinning Mills Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹190 Cr
- Free Cash Flow (FCF): ₹105 Cr
- CFO/PAT Ratio: 864% (strong cash conversion)
What is Nahar Spinning Mills Ltd's dividend yield?
Nahar Spinning Mills Ltd's current dividend yield is 0.40%.
- Dividend Yield: 0.40%
- Current Price: ₹252
Who holds Nahar Spinning Mills Ltd shares — promoters, FII, DII?
Nahar Spinning Mills Ltd's shareholding pattern (Mar 2026)
- Promoters: 68.0%
- FII (Foreign): 0.1%
- DII (Domestic): 0.0%
- Public: 31.9%
Is promoter holding increasing or decreasing in Nahar Spinning Mills Ltd?
Nahar Spinning Mills Ltd's promoter holding has increased recently.
- Current Promoter Holding: 68.0% (Mar 2026)
- Previous Quarter: 67.4% (Dec 2025)
- Change: +0.54% (increasing — positive signal)
How long has Nahar Spinning Mills Ltd been outperforming Nifty 500?
Nahar Spinning Mills Ltd has been outperforming Nifty 500 for 6 consecutive weeks, indicating building momentum.
Is Nahar Spinning Mills Ltd a new momentum entry or an established outperformer?
Nahar Spinning Mills Ltd is a re-entry — it briefly dropped off the outperformance list but has now returned. Re-entries can signal renewed strength.
What are the growth catalysts for Nahar Spinning Mills Ltd?
Nahar Spinning Mills Ltd has 2 key growth catalysts identified from recent earnings analysis
- Value Added Product Mix Shift — Shift to value-added yarns can improve margins but takes time to scale.
- Regulatory Approval Or License Win — FTAs would reduce export duties and improve competitiveness in key markets.
What are the key risks in Nahar Spinning Mills Ltd?
Nahar Spinning Mills Ltd has 3 key risks worth monitoring
- [HIGH] Middle East conflict impacting logistics and energy costs for a company with 50% — Middle East conflict impacting logistics and energy costs for a company with 50% export dependency.
- [HIGH] Narrowing spreads between raw cotton costs (60% of total costs) and finished yar — Narrowing spreads between raw cotton costs (60% of total costs) and finished yarn realizations.
- [MEDIUM] Higher freight rates and insurance surcharges due to regional instability in tra — Higher freight rates and insurance surcharges due to regional instability in transit hubs.
What is Nahar Spinning Mills Ltd's management guidance for growth?
Nahar Spinning Mills Ltd's management has provided the following forward guidance for Q4 FY26
- Revenue outlook: 285 Cr
- OPM guidance: 8%
- Capex plan: Not Given for Modernizing spinning infrastructure and evaluating energy mix optimizations.
- Management tone: cautious
What sector-specific metrics matter most for Nahar Spinning Mills Ltd?
Nahar Spinning Mills Ltd's most important sub-sector-specific KPIs from the latest concall
- Export Dependency: 49.7% — High reliance on international markets makes the company vulnerable to global supply chain disruptions.
- Raw Cotton Cost Share: 60% — Cotton is the primary raw material, and its price volatility directly impacts the cost structure.
- Power and Fuel Expenses: INR 228.61 Cr — Energy prices remain high due to regional conflicts, inflating operating expenses.
- Price-to-Book Ratio: 0.52 — The low valuation reflects market concerns over cyclical risks and current loss-making status.
- Employee Cost Share: 9.68% — Fixed costs like labor remain a significant portion of the revenue base.
Is Nahar Spinning Mills Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Nahar Spinning Mills Ltd may be worth studying
- Earnings growing at +4.5% YoY
- Cash flow is positive — CFO ₹190 Cr
What is the investment thesis for Nahar Spinning Mills Ltd?
Nahar Spinning Mills Ltd investment thesis summary:
Research Signals (Bull Case)
- Growth catalyst: Value Added Product Mix Shift
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Middle East conflict impacting logistics and energy costs for a company with 50%
What is the future outlook for Nahar Spinning Mills Ltd?
Nahar Spinning Mills Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: turning around (inflection up)
- Margin Trend: stable
- Valuation: Significantly Overvalued
- Key Catalyst: Value Added Product Mix Shift
- Key Risk: Middle East conflict impacting logistics and energy costs for a company with 50%
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.