Nitin Spinners Ltd

DEAR SHAREHOLDERS,

The fiscal year 2025 unfolded against a backdrop of global complexities, characterised by persistent geopolitical tensions, evolving international trade restrictions and a cautious consumer sentiment. Despite these challenging external factors, the Indian textile industry demonstrated remarkable resilience and achieved moderate growth. An important driver of this positive performance was the increase in demand across both domestic and export markets. Stable cotton prices further supported operating conditions. However, the industry did face a constraint on margins due to the marginal cost disadvantage of domestic cotton when compared to international prices.

Building on its demonstrated resilience, India's position in global textile trade has significantly strengthened. Trade agreements, notably the Free Trade Agreement (FTA) with major countries like UK, are expected to build long-term momentum for Indian exports.

STRONG FINANCIAL OUTCOMES

Amidst this challenging industry landscape, Nitin Spinners achieved its highest-ever annual revenue of H3,305.65 Crores in FY25, marking a 14% year-on-year growth. This was a notable accomplishment, especially considering the prevailing lower yarn prices. Our export revenue reached an all-time high of H2,111 Crores, registering a 24% growth over the previous year. This reflects our ability to leverage our diversified global customer base across, while effectively adapting to market- specific demands.

Our Profit After Tax stood at H175.43 Crores, reflecting a significant 33% growth over the previous year. Consequently, our Earnings Per Share (EPS) increased to H31.20 from H23.29.

I am pleased to inform that Board of Directors have recommended dividend of 30% ie H3/per share on Equity shares.

EXCELLENCE

A key driver of this performance was our high asset utilisation, coupled with our uncompromising focus on quality. Throughout the year, our spinning capacity operated at over 96%, while the weaving and finishing divisions consistently maintained utilisation rates above 90%. This robust throughput was a result of disciplined execution, sustained order inflows and rising demand for our high-quality, value- added products.

Our emphasis on rigorous quality assurance enabled us to consistently meet evolving customer expectations. Simultaneously, we continued to invest in internal efficiencies and prudent resource allocation, which helped optimise our cost structures and support margin expansion. A disciplined approach to working capital management ensured strong liquidity, even as we scaled our operations.

STRATEGIC CAPITAL DEPLOYMENT FOR FUTURE GROWTH

To sustain growth momentum and prepare for evolving market scenario, the Board has approved a substantial capital expenditure plan of approximately H1,100 Crores for the current year. This investment will be allocated across our yarn and fabric verticals apart from increasing renewable power footprint. The primary objectives of this capital expenditure are to enhance value addition, improve product mix, strengthen cost competitiveness and introduce high- value, specialised products. These initiatives are designed to meet the growing demand for premium fashion products and sustainable textiles from both domestic and global brands.

At Nitin Spinners, we have always followed discipline of building steadily and have grown not by chasing trends but by staying committed to fundamentals, i.e., Focus on quality, integrity in relationships and consistency in delivering value. The proposed capital expenditure initiatives are also on the same principals and will ensure that we remain future-ready by incorporating efficient and scalable infrastructure that supports sustainable and profitable growth.

SUSTAINABILITY AND SOCIAL RESPONSIBILITY

We consistently adopt cleaner production methods and implement resource-efficient technologies, particularly in our energy, water and waste management practices. Our focus on circularity is expanding, with efforts to enhance traceability, significantly reduce our environmental footprint and ensure responsible sourcing.

Our Corporate Social Responsibility (CSR) programmes improve access to education, healthcare and livelihood opportunities within the communities surrounding our operations. Through targeted interventions and partnerships, we strive to enhance the quality of life and build long-term trust with all our stakeholders. Further, employee welfare, safety and skill development remain central to our people-first approach.

GROWTH

The textile industry is poised to experience moderate but steady growth, driven by improving trade relationships, supportive sectorial policies and an increasing global demand for Indian textiles. This favourable medium to long term outlook positions us well; our diversified product portfolio and export footprint allow us to capitalise on this momentum while mitigating risks from regional volatility.

For FY26, our strategic priorities will focus on optimising operations and precisely executing our investment plans. Given these favourable sectoral trends, our disciplined capital allocation and a continued emphasis on value- added products, we are confident in our ability to deliver consistent returns for all stakeholders.

A WORD OF APPRECIATION

I extend my heartfelt gratitude to our employees for their relentless efforts in ensuring the seamless and efficient operation of our business as well as to our esteemed Board of Directors for their sage advice and strategic guidance. I also thank our customers, vendors and Bankers for their continued trust and support and to each of our Shareholders for their patience and belief in our vision.