TO ANALYSE THE FINANCIAL PERFORMANCE OF WINSOME TEXTILE INDUSTRIES LTD
1. Introduction
- Introduction of the company
Winsome Textile Industries Ltd. is a Chandigarh based textile production company dealing in yarns and fabrics used in weaving and knitting. Their well-developed manufacturing units help to produce a large variety of premium products like blends of cotton and synthetic fibres, 100% cotton melange yarns, as well as dyed and specialised yarns developed to meet the industry needs.
- Industry overview
Winsome Textile Industries Ltd. comes under the textile industry. The global textile sector began to recover from 2024 with inventory and order levels coming at par in the second half of the year. In India, this industry has a strong position as the 6th largest exporter of textile and apparel resulting in 4.1% of the global share in 2024. During the FY 2024-25, this industry contributed 8.63% to India’s total merchandise exports, valued at 37.7 billion USD.
- Purpose of the Analysis
The main purpose of this study is to analyse the business structure of the company and to understand the financial performance of the company.
2. Company Overview
- Background and History
Winsome Textile Industries Ltd (WTIL) was founded by Shri Ashish Bagrodia in 1980 with one cutting-edge spinning factory in Baddi, Himachal Pradesh. They have grown significantly from a modest 16,000 spindles in the 1980s to 110,000 spindles today, and they also have a dye house capable of dyeing (cotton and blended yarns and fibres) 35 tons per day and a yarn-dyed knitted fabric capacity of 8 tons per day.
- Business Model
Coming to business model, it earns revenue from 2 main streams
The first key stream is Textile manufacturing and sales (Melange Yarn, Dyed Yarn, Knitted Fabric, Blended Yarns, etc.)
Second Key Stream is HydroPower Generation
- Key Products / Services
Their key products and services include following things
- Yarns
- Knitted Fabric
- Shade Cards
- Market Position
Winsome Textile Industries Ltd. can be called as a small-cap textile company with a market capitalization of 141 Cr as of March 2026. Throughout, their main focus was transforming from commodity yarns to value-added speciality yarns. They put high efforts in shifting a major share of product mix from the lower-value segment to higher-value basket, thereby redefining their positioning in niche and premium categories.
3. Promoter /Founder Introduction
Ashish Bagrodia (Promoter)
- Name of Promoters / Founders
- S C Bagrodia
- Manish Bagrodia
- Ashish Bagrodia
- Vandya Bagrodia
- Sudha Bagrodia
- Vogue Commercial Co Ltd
- Roselab Commodities Pvt Ltd
- Kailashpati Vinimay Pvt Ltd
- Role in company growth
- Ashish Bagrodia – Chairman and Managing Director
- Manish Bagrodia - Director
- S C Bagrodia – Promoter
- Vandya Bagrodia - Promoter
- Sudha Bagrodia - Promoter
4. Financial Statement Analysis
- Income Statement Analysis
Metric | FY 2024-25 | FY 2023-24 | FY 2022-23 |
Net Sales Revenue | ₹865.23 Cr | ₹823.32 Cr | ₹876.03 Cr |
Net Profit After Tax | ₹28 Cr | ₹19 Cr | ₹25 Cr |
Key Observations of Income Statement:
- Revenue was down by 6% approx. in FY 24 but rose again in FY 25.
- Net profit was down by approx. 24% YoY in FY24. However, it went up by 47% in FY 25.
Revenue Chart
- Balance Sheet Analysis
As of FY25:
- Liabilities – Reserves went up by approx. 11% and borrowings down by 11.5%
- Fixed Assets – Went down by 1.5% from previous year
- Current Assets: CWIP down by 90% and other assets up by 1%
- Cash Flow Statement Analysis
FY25 highlights:
- Operating cash flow sharply increased by 18% from previous year
- Investing cash flow improved significantly but remained negative
- Financing cash flows dropped significantly from 119% from last year
- Key Financial Ratios (Indicative)
Ratio Type | Observation |
Profitability | Net profit margin improved significantly in FY 2025 |
Liquidity | Strong liquidity with good current ratio |
Leverage | Long-term debt decreased significantly |
Efficiency | Overall increase in efficiency |
- Year-on-Year Comparison (3 years)
- FY23: Sales reduced with decreased profit margin
- FY24: Sales and profit decreased further due to rise in borrowings and fixed assets
- FY25: Stabilised sales with rise in net profit
5. Key Insights & Interpretation
Strengths
- Diversified customer base across 50 countries.
- Focus on value-added capacity yarns helps to earn high margin and lower competition.
- Continuous adoption of sustainable initiatives to achieve long-term growth.
Weaknesses
- High dependence on cotton and raw material availability
- Relatively high reliance on long-term borrowings
Risk Factors
- Changes in government/exports policies.
- Increasing competition in the textile industry.
Future Outlook
Winsome Textile Industries Ltd. focuses on becoming the biggest player in value-added yarn segments. It is expected to continuously invest in product innovation, technology upgrades and sustainable initiatives to keep an edge over its competitors. By focusing on cost management and expansion in its niche, the company is expected to grow in the long-term and achieve financial stability.
6. Conclusion
- Final Evaluation of Financial Health
The financial health of Winsome Textile Industries Ltd. is moderately supported by its strong presence in the global market. It has also balanced its sales and profit numbers. However, its financial stability highly depends on the factors like raw material price fluctuations, global textile demand and leverage levels.
- Investment or Performance Perspective
Winsome Textile Industries Ltd. has a strong potential for future growth through product diversification, technological innovation and expansion in the premium textile industry. However, investors should closely monitor the global market trends, debt levels and cost management as these factors would impact the company’s growth and profitability in the future
Data Sources
https://www.winsometextile.com/