Nahar Spinning Mills (NSML) announced that Crisil Ratings has reaffirmed its ratings on the bank facilities and commercial paper of the company at 'Crisil A/Stable/Crisil A1'. According to reports from Business Standard, the reaffirmation reflects the company's established position in the cotton yarn industry, supported by a diversified customer base, long operating track record, presence in both domestic and export markets, and healthy operating scale. The latest update shows Crisil has reaffirmed the company's credit ratings and outlook on its total bank loan facilities amounting to ₹1,508.40 crore, as well as its short-term debt instruments. The ratings factor in the expected recovery in operating performance from fiscal 2027 onwards, supported by improvement in yarn realisations, healthy demand from key export destinations, benefits from ongoing modernisation initiatives, and a financial risk profile that is expected to remain comfortable despite debt-funded capital expenditure.
The operating performance moderated during fiscal 2026 due to US tariffs, leading to lower garment exports and weaker yarn realisations, but recovered from Q1 FY27 with improvement in yarn realisations and healthy demand from Bangladesh and China. For the full fiscal, revenue is expected to grow 9-10% and 4-5% over the medium term. These strengths are partially offset by susceptibility to volatility in raw material prices and foreign exchange rates, uncertain geopolitical situation and the inherently working capital-intensive nature of the textiles business.
The company is currently undertaking a modernisation capex of ₹350-400 crore spread across fiscals 2026-2028, involving replacement of older machinery with technologically advanced and energy-efficient machinery. The capex is expected to improve product quality, operational efficiency, throughput and overall competitiveness. Timely commissioning without cost overruns, stabilisation of operations and achievement of planned utilisation levels will be monitorable. The company is also increasing its renewable energy capacity, including solar installations, which is expected to reduce power and fuel costs over the medium term.
The company's net profit surged 337.84% to ₹69.88 crore in Q1 FY27 compared to ₹15.96 crore in Q1 FY26, while sales rose 17.92% to ₹966.10 crore in Q1 FY27 over Q1 FY26. Shares of Nahar Spinning Mills Limited were last trading in BSE at ₹295.45 as compared to the previous close of ₹296.00, with the stock hitting an intraday high of ₹301.45 and intraday low of ₹293.50. The total number of shares traded during the day was 10,375 in over 72 trades with net turnover of ₹307,01,490. Total debt is expected to remain at ₹1,000-1,050 crore in fiscal 2027, compared with ₹983 crore as on 31 March 2026, with liquidity remaining comfortable aided by adequate working capital cushion of ₹925 crore in working capital limit, which was 45-50% utilised in the 12 months through June 2026.
For the full fiscal, revenue is expected to grow 9-10% and 4-5% over the medium term. The financial risk profile is expected to remain stable despite the ongoing debt-funded capex, as the capex is spread over multiple years and being funded through a prudent mix of internal accrual and debt. Nahar Spinning Mills is the flagship company of the Nahar group, a business conglomerate that operates in the spinning, garments and hosiery segments.
