Nitin Spinners to expand capacity with Rs 1,100 cr capital expenditure

Strong operational momentum and inventory control led Nitin Spinners to a resilient performance in the FY26, setting the stage for an aggressive production scale-up. Capitalizing on stable domestic demand for woven fabrics and combed cotton yarn, the company is executing a comprehensive capacity expansion program budgeted at nearly Rs 1,100 crore. Scheduled for commissioning in H2, FY27, this capital commitment will add 35 million meters of fabric capacity and 22,000 tons of spinning volume, strategically positioning the manufacturer to capture emerging export corridors.

The investment cycle coincides with targeted operating margin enhancements driven by a structural transition toward sustainable manufacturing. The board recently authorized an additional Rs 230 crore allocation to develop 41.1 MW of captive solar power capacity across its Jodhpur and Chittorgarh installations. This expansion will boost the company’s renewable energy footprint to nearly 45 per cent of total electricity consumption by next fiscal, structurally reducing thermal energy reliance and defending profitability against global raw material price volatility.

Analysts note, while lower raw material valuations compressed overall yarn realizations early in the fiscal year, a sharp demand recovery in the final quarter pushed capacity utilization above 98 per cent for spinning operations. Dinesh Nolkha, Managing Director verified,  long-term sector tailwinds remain intact, emphasizing, the combination of modernized infrastructure, cost-efficient power sourcing, and an optimized value-added product mix will support standard operating margins between 16 per cent and 20 per cent moving forward.

Nitin Spinners is an India-based integrated textile manufacturer specializing in cotton yarn, knitted fabrics, and value-added woven textiles. Serving major apparel brands across domestic and global export markets, the company leverages high-utilization spinning facilities to execute long-term volume expansions, targeting revenue acceleration and sustained double-digit operating profitability through extensive infrastructure and green energy investments.