T.C. Terrytex IPO

Strengths · 6

• 01Revenue from operations grew from Rs 544.13 crore in FY2023 to Rs 673.48 crore in FY2025, and profit after tax rose from Rs 9.03 crore to Rs 17.00 crore in the same period.
• 02Exports were 75.17% of product sales in FY2025, with customers in Australia, the United States, the United Kingdom and Canada.
• 03The plant runs at high utilisation: 88.60% for towels and 93.13% for dyed yarn in FY2025, with loom efficiency of 95.59%.
• 04Debt has come down every year, from Rs 204.39 crore at 31 March 2023 to Rs 175.20 crore at 31 March 2025, and debt to equity fell from 1.36 to 0.97.
• 05Operating cash flow was Rs 55.24 crore in FY2025 against profit after tax of Rs 17.00 crore, so profit is backed by cash.
• 06The company is vertically integrated, from yarn dyeing to finished towels, with a 9,349.90 MTPA towel capacity and a 5,845.00 MTPA dyed yarn capacity.

Risks · 10

• 01The top 5 customers gave 48.41% of revenue in the six months to 30 September 2025 and 47.22% in FY2025. Losing one could hurt revenue.
• 02The company has no long-term contracts with customers and works on purchase orders, so order flow can change quickly.
• 03Exports were 75.17% of product sales in FY2025, so developments in key export markets can affect the business.
• 04Profit margins are thin. PAT margin was 2.52% and EBITDA margin was 8.77% in FY2025.
• 05Employee attrition was 66.71% in FY2025, 59.02% in FY2024 and 57.23% in FY2023.
• 06Return ratios are modest: ROE was 9.84% and ROCE was 13.35% in FY2025. For the six months to 30 September 2025, ROE was 4.25%.
• 07Total debt was Rs 159.45 crore at 30 September 2025, and the document puts total debt to EBITDA at 5.86 for the six months.
• 08A promoter group company, Satia Synthetics Limited, defaulted on loans earlier. Promoter Akhil Satia gave personal guarantees, and the matter was settled through a one-time settlement with an asset reconstruction company.
• 09The company has delayed payment of statutory dues in the past, which can lead to interest costs.
• 10Of the Rs 170 crore fresh issue, Rs 120 crore goes to repaying borrowings. The rest is general corporate purposes, which the document leaves unspecified, and the offer for sale of 67,50,000 shares brings no money to the company.

T.C. Terrytex Limited works in the cotton-based home textile segment. It makes terry towel products and also sells and processes dyed yarn. The company has been in operation since 30 August 2005 and is based at Village Sarsini, near Lalru in Punjab.

The towel range includes dobby (piece dyed) towels, jacquard towels, face towels, hand towels and bath towels. The plant at Sarsini, Mohali, covers yarn dyeing, warping, weaving, fabric processing, finishing and packaging. It runs semi-automatic machinery imported mainly from Japan. As on 31 March 2025, installed capacity was 9,349.90 MTPA for terry towels and 5,845.00 MTPA for dyed yarn. Capacity utilisation in FY2025 was 88.60% for towels and 93.13% for dyed yarn.

The company is a business-to-business supplier and works on a made-to-order model, including private labelling. In FY2025, product sales were Rs 619.83 crore. Terry towels gave 75.79% of that, dyed yarn gave 23.67% and other items gave 0.54%. Exports were 75.17% of product sales. Key export markets are Australia, the United States, the United Kingdom, Canada and Germany. The company was recognised as a Three Star Export House by the Directorate General of Foreign Trade in 2024.

Customers include retail chains, institutional buyers, hospitality players, trading houses, exporters and textile and yarn mills. K Mart is named as one long-standing consumer brand customer. The company had 1,714 employees as on 30 September 2025. It does not report separate business segments.

The industry

The Indian home textile industry exports widely, and terry towels are a key part of bath linen. As per the D&B report, India's terry towel production reached an all-time high of about 1,05,450 tonnes in FY2025. Exports peaked at USD 535.43 million in FY2022, and the United States took over 50% of them. Demand comes from households, hospitality and healthcare. The report does not give a single market size figure for the segment.

Customer concentration: Top 5 customers gave 47.22% of FY2025 revenue (44.86% in FY2024 and 43.82% in FY2023).