Aastha Spintex Q4 FY26 Results (NSE: AASTHA)
Signal: Steady quarter
The read
Aastha Spintex reported flat PAT growth for FY26 despite strong revenue expansion, as gross margins collapsed in Q4 on rising cotton costs; while finance costs improved and capacity expanded, the earnings quality is diluted by higher share count and weak operating cash flow. The Q4 standalone figures show revenue of ₹129.36 Cr (up 36% YoY but down 9% QoQ) and PAT of ₹6.76 Cr (down 16% YoY, 37% QoQ), with EBITDA margin compressing to 12.1% from 24.9% last year – a structural concern in the current raw material environment.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹129.36 Cr | 36.1% | -8.6% |
| EBIT | ₹13.75 Cr | -27.5% | |
| Net profit | ₹6.76 Cr | -16.1% | |
| EPS | ₹1.66 | -43.2% |
P&L walk
Q4 FY26 standalone: revenue ₹12,935.77 lakh (up 36% YoY, down 9% QoQ) but gross margin collapsed to 15.9% from 24.1% a year ago, driving EBITDA margin to 12.1% from 24.9%. Finance costs and depreciation fell sharply YoY, but not enough to offset margin compression; PAT down 16% YoY. EPS fell 43% YoY to ₹1.66 due to higher share count.
Key positives
- FY26 revenue grew 26% YoY to ₹442.64 Cr, driven by capacity expansion (127% post Falcon acquisition) and higher volumes.
- Q4 YoY revenue growth of 36% reflects continued scale-up despite sequential slowdown.
- Finance costs dropped 53% YoY in Q4, aiding profitability despite margin pressure.
- Company maintains ESG leadership with ~60% renewable energy usage and ~50% women workforce.
- Recent order book of ₹76.78 crore for Jul-Oct 2026 provides near-term revenue visibility (21% of FY25 revenue).
Key concerns
- Gross margin compressed sharply in Q4 to 15.9% from 24.1% a year ago (813bps), indicating severe input cost headwinds from cotton prices.
- PAT for FY26 grew only 1% despite 26% revenue growth, reflecting cost absorption issues.
- EPS declined 31% for FY26 (₹5.84 vs ₹8.50) due to share dilution from IPO and capital increase.
- Sequential decline in Q4 revenue (-9% QoQ) and PAT (-37% QoQ) raises seasonal/competitive concern.
- Operating cash flow of ₹5.36 Cr for FY26 weak relative to PAT of ₹23.74 Cr, suggesting working capital strain.
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