Nitin Spinners sees 7.59% sales decline in Q2, FY26

Nitin Spinners faced a challenging business environment during Q2, FY26 as the company’s net sales declined by 7.59 per cent Y-o-Y to Rs 760.08 crore. The company’s performance is attributed to a fall in average selling prices and weak global demand due to geopolitical uncertainties and cautious overseas buyer sentiment. This difficult market translated directly into pressure on profitability.

Nitin Spinners’ net profit decreased 17.48 per cent to Rs 34.79 crore during the quarter. Along with a dip in sales volume it also saw margins fall, with the EBITDA margin contracting by about 90 basis points to 13.1 per cent. Despite maintaining high operational capacity utilization rate, the company was unable to fully offset the impact of subdued order flows from key export destinations, which account for about 61 per cent of its total revenue, and the industry-wide struggle with yarn pricing.

The management acknowledged that the entire textile sector is grappling with market headwinds, though they expressed optimism for a stronger rebound in the second half of the year, driven by domestic seasonal demand and a strategic focus on expanding their higher-margin finished product and fabric divisions.