Shreedhar Spinners IPO

Shreedhar Spinners Limited spins cotton yarn at a single plant at Plot T-15, Additional Amravati Industrial Area textile park, Tuljapur, Amravati, Maharashtra, in the Vidarbha cotton belt. It makes 100% compact spun cotton yarn in counts from Ne 10s to Ne 40s, which buyers knit or weave into apparel, denim, terry towels, shirting, bed linen, sweaters, socks, furnishing fabrics and industrial fabrics. The plant ran 28,608 spindles as at 31 March 2026, after an expansion from 18,240 spindles in January 2026, and is rated at 10,000 MT of yarn a year. It sells only business-to-business, to textile manufacturers, yarn exporters, traders and fabric processors with a significant presence in Maharashtra, and had 42 customers in FY26. Raw cotton bales are bought from local ginners, traders and the Cotton Corporation of India. It employed 164 people as at 30 April 2026.

Revenue is yarn tonnage sold at a spread over raw cotton, so the input price sets most of the cost base: cost of materials consumed was Rs 11,415.48 lakhs in FY26 against revenue from operations of Rs 14,637.10 lakhs. What the company keeps is the conversion spread, not the selling price — EBITDA margin was 12.04% in FY26 (9.76% FY25, 10.63% FY24) and PAT margin 4.22%. The plant runs roughly 360 days a year and was at 95% capacity utilisation in FY26, so growth needs spindles and spindles need debt: total borrowings stood at Rs 11,589.64 lakhs pre-issue against restated net worth of Rs 2,975.69 lakhs, a debt-to-equity ratio of 3.89. Demand is concentrated, with the top ten customers at 81.51% of FY26 revenue.