Soma Textiles & Industries Ltd. (F.Y. 2024-2025)

Executive summary

Soma Textiles & Industries Ltd. is an Indian textile company. Before this company operated in the manufacturing of cotton yarn, denim fabrics, shirtings, and garments. Due to the closure of its manufacturing facilities ordered by the Hon’ble Gujarat High Court, the company discontinued its manufacturing operations. Since November 2022, the company has shifted its business model to trading of cotton. During 2025, the company has a strong financial position. The Board of Directors did not require any dividend for Fy 2024-25.

Company Overview

Soma Textiles & Industries Ltd. is an Indian textile company. It was established in 1969. The company earlier operated in the manufacturing of cotton yarn, denim fabrics, shirtings, and garments. Due to legal and environmental issues that resulted in the closure of the manufacturing operations. Since November 2022, Soma Textiles has changed its business model to trading of cotton. During 2025, the company has a strong financial position. The company focuses on improving its financial performance, good governance, etc.

Industry Overview

The Indian Textile and apparel industry is one of the oldest and largest industries in the country. Soma Textiles & Industries Ltd. the company’s business shift towards efficient supply chain and growing demand for cotton. The company faced challenges such as changes in cotton prices, rising raw material prices, and energy costs, heavy competition, and uncertainty in the economy. During 2025, the company has a strong financial position. The company focuses on improving its financial performance, good governance, etc.

Financial Performance (for the year ended as on 31, March 2025) (Rs in lakhs)

Particulars	2025	2024
Revenue from operations	948.75	572.68
Other income	505.61	592.52
Expenses:
Cost of material consumed	-	-
Purchases of stock-in-trade	932.60	570.97
Change in inventories of FG and WIP	-	-
Employee benefits expense	149.49	143.74
Finance costs	16.66	50.66
Depreciation	41.58	32.16
Other expenses	445.70	194.62
Profit/(loss) before exceptional items	(131.66)	173.05
Exceptional items	6,959.83	2,238.32
Profit/(loss) before tax	6,828.17	2,411.37
Tax expense:
-Deferred tax	98.70	(302.15)
Profit/(loss) for the period	6,926.87	2,109.23

Source: Annual Report of Soma Textiles & Industries Ltd. 2025

Key Financial Ratio

Particulars	2025	2024
Debtors Turnover	4.00	120.44
Inventory Turnover	-	-
Interest Coverage ratio	(4.4)	(0.34)
Current ratio	71.60	1.83
Debt Equity ratio	0.12	0.02
Operating Profit Margin (%)	(7.74)	44.68
Net Profit Margin (%)	730.10	181.31
Return on Net Worth (%)	56.23	24.15

Source: Annual Report of Soma Textiles & Industries Ltd. 2025

SWOT Analysis

Strengths

1.The company has a strong financial position in 2025.

2.The company has strong industry experience.

3.Soma Textiles has reduced financial risk.

4.The company has a strong brand name.

Weaknesses

1.The company highly depends on cotton.

2.The company has reduced markets in domestic and international markets.

3.Changes in cotton prices affects profit margin.

Opportunities

1.The company’s demand is growing for the Textiles industry.

2. The company can expand its business.

3.The company has government support schemes.

4. The company’s demand is growing for sustainable cotton.

Threats

1.The company has strong competition.

2. There can be economic slowdown and uncertainty in the market.

3.Change in domestic and international cotton prices can affect profit margin.

Conclusion

Soma Textiles & Industries Ltd. is an Indian textile company. During 2025, the company has a strong financial position. The Board of Directors did not require any dividend for Fy 2024-25. The company has shifted its focus on cotton trading. The company focuses on improving its financial performance, operational efficiency, etc. The company faced challenges such as changes in cotton prices, rising raw material prices, and energy costs, heavy competition, and uncertainty in the economy. Soma Textiles & Industries Ltd. is well-established for future growth.