What were the spreads during Q1 FY27 and what are current spreads in Q2?

Spread was about ₹110 in Q4 FY26 and is now about ₹130; as of today, the company is sustaining that level.

Can the current EBITDA margin of 17–18% sustain for the next quarter or two?

Management expects the same absent extraordinary global/geopolitical changes, but declined to comment on improvement or a downside floor.

Why did yarn volumes decline QoQ/YoY despite improved demand?

Yarn production continued at 98% utilization; lower external yarn sales reflected higher captive fabric consumption and logistics-related unsold stock that was dispatched later.

What is the split and timeline for new capacity revenue and ramp-up?

Yarn is expected to be fully ramped by 31 March 2027 and fabric may take one or two quarters more in FY28; fabric revenue is expected to reach about ₹1,200 Cr in FY28 from ₹700 Cr plus.

What is the EBITDA margin bridge for YoY expansion?

Management gave a broad outline: about 0.5% benefit from power savings, with the majority from higher yarn realisations and gross margin improving from 34–35% to 40% plus, but did not quantify the full bridge.

Will margins reach the upper end of the 16–20% band long term?

Management maintained the 16–20% band and said it tries to move to the upper end, but would not guide that it will definitely reach 20%.

Nitin Spinners Q1 FY27 Earnings Call — Analysis (NSE: NITINSPIN)

Nitin Spinners posted its highest-ever quarterly revenue of ₹875 Cr with EBITDA margin up 376 bps YoY to 17.78%, led by improved cotton yarn spreads.

13 Aug 2026 · Analysis by Alpha Inflection

Result quality: strong — Margin expansion. Management sentiment: neutral.

The take

Q1FY27 EBITDA before other income ₹155.6 Cr ( +39.85% YoY ) .

Results

Q1FY27 revenue was ₹875 Cr (+10.3% YoY, +1.8% QoQ), EBITDA before other income was ₹155.6 Cr (+39.85% YoY, +19.3% QoQ), EBITDA margin was 17.78% (+376 bps YoY, +261 bps QoQ), and PAT was ₹75.3 Cr (+83.63% YoY, +31.2% QoQ).

Financial highlights

Nitin Spinners Q1 FY27 reported figures
Metric	Value	Change	Basis
Revenue	₹875 Cr	+10.3%	yoy · Q1FY27 · vs Q1FY26
Revenue	₹875 Cr	+1.8%	qoq · Q1FY27 · vs Q4FY26
EBITDA before other income	₹155.6 Cr	+39.85%	yoy · Q1FY27 · vs Q1FY26
EBITDA before other income	₹155.6 Cr	+19.3%	qoq · Q1FY27 · vs Q4FY26
EBITDA margin	17.78%	+376 bps	yoy · Q1FY27 · vs 14.02% in Q1FY26
EBITDA margin	17.78%	+261 bps	qoq · Q1FY27 · vs Q4FY26
Profit after tax	₹75.3 Cr	+83.63%	yoy · Q1FY27 · vs Q1FY26
Profit after tax	₹75.3 Cr	+31.2%	qoq · Q1FY27 · vs Q4FY26
EPS	₹13.39		point_in_time · Q1FY27 · Q1FY27 per share
Cash EPS	₹20.08		point_in_time · Q1FY27 · Q1FY27 per share

Guidance

Management guided FY27 to close stronger than FY26 on partial H2 contribution from new capacities, renewable power to be operational by end-Q3FY27, and fabric revenue to reach about ₹1,200 Cr in FY28.

Key themes

Cotton spread recovery and capacity expansion

Operational commentary

Capacity expansion on track: fabric capacity adding 35 million meters and spinning adding 74,000 spindles; weaving to start in a couple of months, processing around Diwali, spinning around December 2026; yarn ramp-up expected by 31 Mar 2027, fabric ramp-up a quarter or two into FY28.
Renewable power project expected operational by end of Q3 FY27; management pegs annual EBITDA benefit at about ₹50 Cr, with ₹1.2–1.5 Cr already accruing in Q1; blended power cost projected at about ₹5.50/unit once solar meets about 60% of requirements.
Cotton yarn spreads improved to about ₹130 in Q1FY27 from about ₹110 in Q4FY26 and were sustaining at that level as of the call date.
Export mix remained high at about 65% of revenue; management cites India–UK FTA and potential EU FTA as demand tailwinds.
Spinning utilization was 98% and woven fabric utilization 92%; reported yarn sales volume down QoQ/YoY due to higher captive fabric consumption and logistics-related stock, not lower demand.
Knit fabric utilization is still only about 55–60%, below the earlier 65–70% target, due to ongoing US tariff uncertainty.
Cotton parity improved: Indian cotton now about 1–2% below the Cotlook index versus about 5–7% premium in 2023–24; India's cotton yarn exports to China rose to 110–115 million kg in CY26 from 90–100 million kg in CY25.

Analyst Q&A

Q. What were the spreads during Q1 FY27 and what are current spreads in Q2?
Spread was about ₹110 in Q4 FY26 and is now about ₹130; as of today, the company is sustaining that level.
Q. Can the current EBITDA margin of 17–18% sustain for the next quarter or two?
Management expects the same absent extraordinary global/geopolitical changes, but declined to comment on improvement or a downside floor.
Q. Why did yarn volumes decline QoQ/YoY despite improved demand?
Yarn production continued at 98% utilization; lower external yarn sales reflected higher captive fabric consumption and logistics-related unsold stock that was dispatched later.
Q. What is the split and timeline for new capacity revenue and ramp-up?
Yarn is expected to be fully ramped by 31 March 2027 and fabric may take one or two quarters more in FY28; fabric revenue is expected to reach about ₹1,200 Cr in FY28 from ₹700 Cr plus.
Q. What is the EBITDA margin bridge for YoY expansion?
Management gave a broad outline: about 0.5% benefit from power savings, with the majority from higher yarn realisations and gross margin improving from 34–35% to 40% plus, but did not quantify the full bridge.
Q. Will margins reach the upper end of the 16–20% band long term?
Management maintained the 16–20% band and said it tries to move to the upper end, but would not guide that it will definitely reach 20%.

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