Mafatlal Industries posts strong 9MFY26 growth on textile push

Nine-month revenue jumps nearly 27% as margins and order book improve.

Mafatlal Industries has reported a steady financial performance for the quarter and nine months ended December 31, 2025, supported by disciplined execution across its diversified businesses. The company announced its unaudited results, highlighting strong year-on-year growth for the nine-month period despite temporary disruptions in quarterly revenue recognition.

For Q3FY26, revenue from operations stood at Rs 7.17 billion. Over the nine months ended December 31, 2025, revenue from operations rose 26.7 per cent year-on-year to Rs 29.87 billion, compared with Rs 23.57 billion in the corresponding period last year. Growth was primarily led by the Textile and Related Products segment and the Consumer Durables segment, while the Institutional business catering to B2B and public sector clients also made a meaningful contribution.

The Textile and Related Products segment recorded a 15.7 per cent year-on-year increase in revenue during the nine-month period. EBIT margins for the segment improved to 6.4 per cent, up from 5.5 per cent in 9MFY25, aided by the company’s focus on expanding its uniform solutions portfolio.

In the Digital Infrastructure segment, Mafatlal Industries executed ICT Lab projects across 333 public sector schools, including annual maintenance contracts, ensuring stable performance for the segment.

The company noted that the moderation in quarterly revenue on a year-on-year basis was largely due to deferred order execution during the election code of conduct period in Maharashtra and Bihar. Management expects execution to normalise from Q4FY26. Operating EBITDA margins remained stable, underlining the resilience of the company’s asset-light business model.

During Q3FY26, following the Ministry of Labour and Employment’s notification on the New Labour Codes, the company reassessed employee benefit obligations and recognised an estimated incremental liability of Rs 20.87 million as an exceptional item.

As of December 31, 2025, the order book stood at around Rs 12 billion, providing strong visibility. Gross debt reduced to Rs 520.8 million from Rs 680.3 million as of March 31, 2025.

Commenting on the performance, M B Raghunath, Chief Executive Officer, said, “We are pleased to report a satisfactory quarterly performance despite temporary delays in revenue recognition due to the election code of conduct in Maharashtra and Bihar. Despite these temporary delays, our margins grew, reflecting our focused strategy and asset-light business model. Our nine-month results surpassed last year’s performance, driven by strong growth in the Textile and Consumer Durables segments. With a robust order book of around Rs 12 billion, we are well-positioned for the upcoming quarters and remain committed to strengthening our uniform business, exploring value-added opportunities, and delivering sustainable results.”