Shree Ram Twistex leverages premium value-added yarns to drive profit growth post-IPO

Gujarat-based cotton yarn specialist Shree Ram Twistex has reported a standout financial performance for Q3, FY26, with 70 per cent Y-o-Y growth in net profit to Rs 3.7 crore. This growth was led by a 75.2 per cent revenue increase, reaching Rs 92.9 crore, as the company successfully changed its product mix toward higher-margin ‘value-added’ segments.

Moving beyond commodity spinning, the firm has seen higher demand for its Eli Twist and compact slub yarns, which now command 12 to 15 per cent price premium over standard carded varieties. The company’s focus on China Plus One diversification strategy has opened new export channels for its Lycra-blended and organic yarns, particularly in the high-growth athleisure and home textile markets.

Despite initial stock market volatility following its March 2 listing, their operational core remains strong, supported by a 6.1 MW captive solar plant that has helped insulate margins from rising grid power costs. Analysts note, as the Indian spinning industry targets a 7-9 per cent volume growth this fiscal, players like Shree Ram Twistex, who maintain a shorter 34-day working capital cycle compared to the industry average of 55 days, are better positioned to scale without excessive debt.

Shree Ram Twistex manufactures premium cotton yarns including compact ring-spun and value-added blends for global denim and home textile brands. Primarily serving the domestic and Southeast Asian markets, the company is currently expanding its renewable energy footprint to lower production costs. It recently shifted to a public limited entity following a Rs 110 crore IPO.