Shares of a prominent Indian textile manufacturing company surged nearly 4% in intraday trade on Thursday after the firm announced a fresh ₹10 crore order from AL Rahmat Textiles, a leading exporter based in the Middle East. This development is seen as a significant boost to its order book, reflecting improving export demand and strategic customer diversification.
Key Order Details
In its exchange filing, the company stated that it has secured a new order worth ₹10 crore from AL Rahmat Textiles, which specialises in premium cotton fabrics, bed linens, and towels for global markets including Saudi Arabia, UAE, and Oman. The order is to be executed over the next two quarters, with deliveries scheduled from July 2025 to December 2025.
| Parameter | Details |
|---|---|
| Order Value | ₹10 crore |
| Client | AL Rahmat Textiles |
| Products | Premium cotton fabrics, dyed & processed textiles |
| Delivery Timeline | July – December 2025 |
| Production Units | Gujarat and Tamil Nadu facilities |
| Payment Terms | Letter of Credit (LC) secured |
Stock Performance
Following the announcement, the company’s stock jumped 4% to hit an intraday high of ₹148.40 on the NSE, before paring some gains to close 2.8% higher at ₹146.10, outperforming the benchmark Nifty which ended flat.
Price Movement Snapshot (Intraday)
| Time | Price (₹) | Movement |
|---|---|---|
| Open | 141.80 | — |
| High | 148.40 | +4.6% |
| Low | 141.50 | -0.2% |
| Close | 146.10 | +2.8% |
Strategic Significance Of The Order
Analysts noted that the fresh order from AL Rahmat Textiles is strategically significant for three reasons:
- Export Market Penetration:
Reinforces the company’s growing presence in Middle Eastern markets, which account for over 22% of India’s textile exports, driven by premium cotton products and dyed home furnishings. - Operational Capacity Utilisation:
The order will help enhance plant utilisation levels at its Gujarat and Tamil Nadu units, which currently operate at ~68-70% capacity. - Strengthened Customer Portfolio:
Association with AL Rahmat Textiles – known for strict quality compliance and bulk orders – positions the company to secure repeat high-value orders in FY26.
Recent Financial Performance
The textile manufacturer reported a steady performance for Q4FY25:
| Particulars (₹ crore) | Q4FY25 | Q4FY24 YoY Growth (%) |
|---|---|---|
| Revenue | 342 | +8.5% |
| EBITDA | 46 | +12.2% |
| EBITDA Margin | 13.4% | +40 bps |
| Net Profit | 19.6 | +10.8% |
| Export Contribution | 56% | +3% |
Management has guided for 10-12% revenue growth in FY26, aided by capacity expansion, export order pipeline, and stabilisation of input costs.
Analyst Views
- Kotak Securities:
“The order win indicates robust demand traction from Middle Eastern buyers. This will support near-term revenue visibility and improve operating leverage, given fixed cost absorption benefits.” - ICICI Direct:
“Maintaining ‘BUY’ rating with a target price of ₹165. Order inflows, rupee stability, and correction in raw cotton prices will remain key earnings drivers.” - Motilal Oswal:
“The company’s focus on premium segments and B2B export tie-ups continues to de-risk its revenue base from domestic cyclicality.”
Indian Textile Industry Context
The order comes amid positive signals from India’s textile sector. According to recent data from the Textile Ministry:
- India’s textile exports stood at USD 43 billion in FY25, up 6% YoY, despite global demand volatility.
- Major growth drivers included cotton fabrics, home textiles, and technical textiles.
- Middle Eastern markets are emerging as critical hubs for Indian textile exports, alongside US and EU.
Management Commentary
The company’s Managing Director stated:
“We are delighted to receive this prestigious order from AL Rahmat Textiles, marking the beginning of a promising relationship. This strengthens our export book and validates our product quality and processing standards that meet international benchmarks.”
He further added that the company continues to explore long-term supply agreements with large global textile retailers and distributors.
Recent Orders And Strategic Initiatives
In FY25 alone, the textile manufacturer secured:
| Client | Region | Order Value (₹ crore) | Product Category |
|---|---|---|---|
| XYZ Textiles | Europe | 6.2 | Organic bed linen |
| AL Rahmat Textiles | Middle East | 10.0 | Premium cotton fabrics |
| HomeEssence Retail | US | 4.8 | Towels and bath linen |
Additionally, the company is:
- Expanding dyeing and processing capacity by 15% in Gujarat unit, expected to be commissioned by Q4FY26.
- Investing in solar rooftop projects to reduce power costs by ₹3-4 crore annually.
- Exploring digital B2B platforms to reach smaller international buyers.
What Should Investors Watch Next?
- Execution Timelines:
Timely fulfilment of AL Rahmat’s order will be crucial for future high-volume orders. - Raw Material Price Movements:
Cotton prices remain volatile; the company’s efficient procurement and inventory hedging strategies will impact margins. - Export Incentives And Policy Updates:
Any changes in RoDTEP rates, duty drawbacks, or MEIS alternatives will influence net realisations. - FY26 Guidance Update:
Investors await Q1FY26 results and management commentary later this month for updated growth and margin guidance.
Conclusion
The fresh ₹10 crore order from AL Rahmat Textiles is a strategic milestone for the company, reflecting sustained export demand and bolstering its revenue visibility for FY26. With a diversified customer base, planned capacity expansions, and operational cost optimisation initiatives, analysts believe the textile manufacturer is well-positioned to navigate cyclical challenges and deliver steady growth in coming quarters.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
