Shree Ram Twistex IPO

It’s shown it can scale up steadily over time. Revenue from operations grew from ₹62.79 crore in FY17 to ₹255.04 crore in FY25. On a yearly basis, its revenue went up 10.13% from ₹231.59 crore in FY24.

It uses its factory capacity pretty well, which helps protect profit margins. In the first half of FY26, it ran at about 87% of its installed capacity of 9,855 metric tonnes per year, up from 70% in FY23.

Profits and returns have been moving in the right direction. Net profit margin (profit as a % of sales) rose to 5.3% in H1 FY26, and ROCE (Return on Capital Employed - how efficiently it earns from the money invested in the business) came in at a solid 10.74%.

A lot of the work happens in one place, which usually makes control and coordination easier. Its single manufacturing facility has a built-up area of 10,167.94 square meters and handles everything from processing raw cotton to packaging the final yarn.

The plant being in Gujarat is a practical plus. It’s close to cotton ginning mills (where raw cotton gets cleaned and separated) and skilled workers, which helps keep raw material supply steady and makes deliveries simpler and faster.

It’s gotten better at managing working capital (the cash tied up in day-to-day operations like inventory and payments). Its cash conversion cycle (how long cash stays stuck before it comes back as sales cash) improved from 71 days in FY23 to 34 days in FY25, which frees up cash for regular business needs.

It leans a lot on a small set of buyers for sales, which can be risky. In FY25, its top 10 customers made up 85.98% of total revenue, or ₹217.16 crore, while the largest customer accounted for 32.97% of the revenue (₹83.26 crore).

It also depends on a handful of suppliers for key raw materials, so supply issues or price changes can hurt quickly. In FY25, its top 5 suppliers accounted for 73.31% of total purchases, worth ₹113.94 crore.

Cotton prices matter a lot here because raw material costs take up a big chunk of sales. In FY25, raw material purchases were ₹168.9 crore, which is 66.23% of its revenue from operations.

It runs mainly on purchase orders (short, order-by-order deals) with both customers and suppliers, instead of long-term contracts. That means there’s no guaranteed pricing or volumes, so it’s more exposed to sudden order cancellations or abrupt cost spikes.

It uses a fair amount of borrowing to fund the business, which adds interest costs and reduces flexibility. As of September 30, 2025, total borrowings stood at ₹60.70 crore.

Everything is based in Gujarat; the only factory and even the registered office. So if something local goes wrong (like floods, unrest, or a big regulatory change), operations could get disrupted or even paused entirely.