Himatsingka Seide Limited (NSE: HIMATSEIDE) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Shrikant Himatsingka — Executive Vice Chairman & MD
Analysts:
Unidentified Participant
Prerna Jhunjhunwala — Analyst
Bhavin Chheda — Analyst
Nirav Savai — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Himat Singha Sai Day Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Prena Jhunjhunwala from Ilara Securities. Thank you. And over to you ma’. Am.
Prerna Jhunjhunwala — Analyst
Thank you. Hamshad. Good afternoon everyone. On behalf of Elara Securities India Private Limited I would like to welcome you all for Q1FY26 post result conference for of Himachinkha Cider Limited. Today we have with us the senior management of the company including Mr. Srikanth Himatsinkha, Executive Vice Chairman and Managing Director. Mr. Shankar Nayaran M, President Finance and Group CFO and Mr. Bankesh Dhingra, Vice President CFO Operations. I would now like to hand over the call to Mr. Srikanth Himarsinkha for opening remarks post which we will take the Q and A session. Thank you. And over to you sir.
Shrikant Himatsingka — Executive Vice Chairman & MD
Hi everybody. Thanks for taking the time this afternoon to join us for our earnings call. I’d like to begin with a quick business update. Presuming you’ve gone through the numbers and then of course I’d be happy to answer any questions that you might have. So to begin with, our YOY total revenues and total income saw a decline of 10.4% and stood at 661 crores versus 738 crores during the same quarter last year. This is largely on account of the uncertainties that prevail owing to the tariffs that have been imposed by the United States. Our capacity utilization levels were largely range bound during the quarter as you might have seen.
Seen already the spinning was at 99%. The sheeting division came in at 60 and the Terry at 68. Pretty much the same as last quarter. Some minor fluctuations in realizations. The proposed additional 25% tariff to be imposed by the United States has created some uncertainties and has adversely impacted sentiments. And this environment reinforces our strategy of expanding our global client base into other jurisdictions, geographies and channels. So that remains a very very key focus of Himsinka, especially under the current circumstances. So this is not a new strategy but it’s reinforced and we are pursuing it with greater vigor than we did previously.
We see opportunities to expand our market presence in the UK following the signing of the FTA between India and the UK in July 2025. Of course, for initiatives on the UK front to come to fruition, it will take a few months until the agreements are formalized and effective. As we have shared earlier, we operate in India with three brands. We operate with our Himeya brand, our Atmosphere brand and our Live brand. We remain committed to expand our presence in India and grow our India businesses rapidly. The three brands cover a broad cross section of home textile products and are positioned to service consumers across price points and product categories.
We continue to see yoy growth in our revenue streams from our India market. The ESG front There’s really no change from the last quarter and we remain on track to achieve some of our key sustainability goals by 2030. We are also taking initiatives to fast forward this deadline of 2030 that we have set internally for ourselves, which will also help us rationalize some of our energy costs. During the first quarter we continued to bring our debt down vis a vis March. Our net Debt stood at 2,405 crores versus 2,425 crores during the end of March 31st, 2025.
So these are some of the key updates that I thought I’d like to share. Our focus areas going forward will be as follows. Number one, we will be focused on our India presence and to grow our India presence. So not only will we be growing our three brands, we are also growing our private label presence in the country. There are definitely various buckets and opportunities to tap into which we are doing. We expect our India business to close to double from the previous fiscal and we seem to be broadly on track vis a vis our vision of of taking India to close to 1000 crores, 800 to 1000 crores over the next few years.
Second, we remain extremely committed and focused on expanding our presence in non US jurisdictions. We currently service 35 non U S jurisdictions and we are taking and making additional efforts to enhance our presence across these jurisdictions to reduce some of our dependence on the US Given the volatility. Third, we will be making sure that while we take these initiatives, we are balancing our presence across channels and across price points to be able to have a more stable portfolio going forward. So these are our key areas of focus at this point. As far as tariffs is concerned, we are on a wait and watch mode.
We believe that up to 25% of tariffs shouldn’t create any material disturbance or any stir of any kind or any interruption of any kind because we will be comparable to other competing home textile geographies such as China and Pakistan. If the tariffs were capped at 25% then we are 5% better off than China and 6% worse off than Pakistan, which puts India in a reasonably competitive position. And we don’t, at least as far as Himatinka is concerned, we don’t see that to be a material challenge. What is turning out to be the challenge is really the tariffs that have been imposed over and above the 25% threshold.
And the feedback we’re getting from clients at this point is largely a wait and watch kind of feedback. They’d like to see what happens over the next couple of weeks vis a vis the discussions that are ongoing, you know, in diplomatic channels. The customers have not, as we speak, we haven’t seen any clients pull back on any orders nor have we seen any clients ask us to stop production at this point. And this is where we stand as far as the tariffs are concerned. So this was our quick, let’s just say take on the tariff situation.
I’ve shared with you our key areas of focus. Unfortunately our utilizations have been hit because of these impacts. But you know, hopefully there will be a resolution to these matters pretty soon. I’ll be happy to take any questions that you might have.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Survankar Malik from SKS Capital. Please go ahead. Hello.
Unidentified Participant
Am I audible?
Shrikant Himatsingka
Yes, you are.
Unidentified Participant
Thanks for the opportunity. My first question is the company considering relocating the production to other countries in response to carry?
Shrikant Himatsingka
You know, there are limitations in doing so Subhankar, because of the underlying regulations and the assets that are involved in the process. So we don’t have any specific plans of relocating any manufacturing facilities facilities at this point.
Unidentified Participant
Okay, My next question is, is management currently exploring new markets or customers to offset the impact on the US business?
Shrikant Himatsingka
We absolutely are. As I said earlier in my business update, other than the US we are currently serving 35 jurisdictions globally and we service a client roster of approx. Over 70 clients non US we are working round the clock under the circumstances to be able to push and expand our presence in non US jurisdictions as fast as possible. That’s something we are doing and I can’t be more specific at this point, but it’s definitely priority number one on our agenda.
Unidentified Participant
Yeah, so can I see another question? Hello. Yeah, so can you just share the FY26 guidance about revenue and margin? That’s the last question.
Shrikant Himatsingka
Shubankar Himansinkha does not give guidances on revenues and margins. As far as margins is concerned, we have shared with stakeholders earlier that our EBITDA margin band is 18 to 22% and that’s where we believe our model should deliver. That’s not a guidance for 26, but that’s more a band guidance that we believe we should be at any given time. However, under the current circumstances and the uncertainties that prevail, you know, I’m afraid I can’t say anything more specific at this time.
Unidentified Participant
Understood. Thank you.
Shrikant Himatsingka
Sure. Thank you.
operator
Thank you. Before we take the next question, we would like to remind the participants to press star and one to ask a question. The next question is from the line of Bhavin Cheddar from, from Enam Holdings. Please go ahead.
Bhavin Chheda
Yeah, good afternoon sir. Couple of questions. One is on the first thing on the tariff itself. Despite this quarter had a full impact of incremental 10% which was levied on Indian exports to the US. Your margin is still at 19% which was decent enough decline of hardly 200 basis points. So has the client absorbed the incremental 10% impact and there was no impact on FOB values because it looks like the margin decline quarter on quarter was largely due to a lower top line and operating leverage.
Shrikant Himatsingka
Yeah, I mean we had shared with investors earlier that and stakeholders earlier that we expect 150 basis to 200 basis point shave somewhere in that, you know, somewhere in that range, you know. And of course it’s dependent on product mix. And we had also said that as far as the first phase of 10% went, you know, the clients have reached out on, you know, sharing some of the burden on tariffs and we said that we will share a little bit of burdens of the total and the rest is either been absorbed by the client or has been passed on to the consumer.
To the best of our knowledge, as far as phase one is concerned, it’s been absorbed by most of the large retailers and they haven’t materially passed on anything at this moment. There are a few exceptions and few buckets where they have passed it on. But as far as the first phase is concerned, to the best of our knowledge it’s been limited to absorption at their end.
Bhavin Chheda
Okay, that’s very helpful. Sir and obviously you already would have been talks with. Now the tariffs of all the countries have been announced And India got 25 and another 25 as a penalty. So what is the discussions right now about the initial 15% increase? How the Again it’s a similar situation you will have to partly absorb and they partly absorbing because first 10% and now 25% is a, is a very different number. So what kind of what is the client feedback on that 25% levy to India vis a vis the other countries? Few countries are having lower than 25%.
I’m not taking the another 25% which is still there is a possibility of a rollback if at all the India stops buying Russian oil. So from 10 to 5.
Shrikant Himatsingka
First 10% joby, whatever the hisab had to be done has been done. The 10 to 25 bucket, you know, will largely follow the same pattern as the 0 to 10 bucket and maybe the impact will be slightly lower than what was on the 0 to 10 bucket because as far as we are concerned we have already shared some on the first, on the first instance, the last 25 to 50 bucket there has been no discussions yet because quite honestly it’s been just a week since it’s been imposed and everybody is just digesting, you know, how to handle an uncertainty and a phenomenon of this nature which is unprecedented and sort of as far as India is concerned and we haven’t seen something as absurd as this before.
So we haven’t taken any precipitative steps and or any conclusive steps or have had any conclusive discussions with clients vis a vis this 25 to 50 bucket. It’s on a wait and watch mode and it’s being worked out point.
Bhavin Chheda
Sure. So as I interpret you are saying that the first 25 shouldn’t be a problem and the newspaper reports indicating that the big box retailer had cancelled orders of Indian clients because of the sharp increase is all speculative. Right? There is no such things as client cancelling orders of Indian exporters.
Shrikant Himatsingka
That’s a broad and sweeping comment, Bhavin. I cannot say that nothing has occurred. I can say that nothing has occurred vis a vis Himitzinghe and I can also say that nothing one should look at any such articles in the light of the fact that it doesn’t just address home textiles but could cater to various categories of products which could include apparel, it could include other forms of products which I have no jurisdiction to comment on as far as Himitinka is concerned and to the best of my knowledge, vis a vis the home textile industry. We haven’t seen any substantive and or material decision by any client to withhold and or stop production of any of any kind.
Bhavin Chheda
Thanks a lot. That’s very helpful, sir. Yeah. And I’ll come back for more questions. Yeah. Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Prerna Junjunwala from Elara Securities. Please go ahead.
Prerna Jhunjhunwala
Hi. So, thank you. Just wanted to understand the efforts on the brand side. Most of the other home textile companies whom we speak to have ramped up their branded profile to mitigate the risk on B2B orders. Where are, what are we doing on branded side in the U.S.
Shrikant Himatsingka
You know, Prena, the. The Himatsingha operates a fairly substantive portfolio of brands. If you were to look at us, if you were comparing apples to apples, there are enough brands that we have as well. I’m not sure that brands will help us mitigate B2B risk. This is Himit Singha’s personal. I mean, this is Himit Singh’s opinion because we did operate the largest national portfolio, the national brand portfolio in the country earlier in the United States. As far as home textiles is concerned, while it had some advantages, but it didn’t help us mitigate some of the B2B risks necessarily because the brand portfolio came along with its own challenges and issues.
So. So we use, at least as far as Himitinka is concerned, brand portfolios to optimally position ourselves as total solution providers and make sure that we are available to clients with a more holistic portfolio of solutions than without it. In the past, I’ve been asked by investors if brands help us enhance margin profiles. And my answer is that it’s been largely neutral because if it does offer some upside on gross margin, there are also associated costs with it in the medium term and it largely stands neutralized. At best, it could be 100 odd basis, 100, 200 basis point movement.
So we feel the brands will add more value when it comes to jurisdictions like India and when it comes to channels like E Com and qcom, these are really areas where we think brands will add material and substantial value vis a vis mitigating B2B risk. This is how we look at it. And on that front, we operate in the country with three brands, as I said, and we are expanding all three. And we are expanding our footprint in the E, Comm and QCOM channels as well.
Prerna Jhunjhunwala
This is helpful. And so in light of these, what will be our exposure to us today and non US geographies, including India.
Shrikant Himatsingka
Yeah, we’ve shared this earlier. It should be in the region of pure us should be in the region of 60% going south.
Prerna Jhunjhunwala
Okay.
Shrikant Himatsingka
Over the last two fiscals it has corrected substantially because you know of our Terry division ramping up in other jurisdictions, jurisdictions as well and so on, plus our foray into India and things like that. So you know, 60 and reducing. So my aim was that Himatsinkha should be below 50% over the next 18 months was what we were aiming. 18 to 24 months was what we were aiming for in a normalized scenario.
Prerna Jhunjhunwala
Understood, sir. And some last question will be on India ramp up. You had mentioned about around 150 odd revenues that you had reached in FY26. Could you also help us understand the touch points, the penetration, network marketing, region wise, you know, penetration that you are looking at? Where are we? Some color on India business that would be helpful.
Shrikant Himatsingka
So Prena, we function across various formats and channels like other brands do. So we are present in the multi brand outlet universe. We are present in the large format store universe which are all the department stores and other similar store formats. We are present in the institutional universe which includes all the hotels and restaurants and things of that nature. The institutional requirements, we are present in the private label channels where we service private label requirements of major retailers in the country. We are present in the E. Com channels, we are now present in the QCOM channels and we are exploring other formats through which we can also reach consumers across the country.
Our footprint for our Himeya brand is in the region of 4,000, around three and a half to 4,000 points of sale. And we intend to take our live Brand to over 1012,000 points of sale at this point. Of course these numbers keep sort of targets will change as we go along, but this is where we are aiming at, you know, as far as some of our brands are concerned. And please keep in mind that Himatsinka operates both in the bedding and bath segments as well as in the drapery and upholstery segments. And one of the plans that we are working on at this time is to broad base our drapery and upholstery segment offerings as well to cater to price points which are more affordable and broad based that product portfolio as well.
So we are working across bedding, bath, drapery and upholstery at this point and across all channels and price points. India is seeing reasonably strong growth and I think in the times to come it will continue to see robust growth. There’s a fair amount of opportunity that can be tapped into as far as India is concerned.
Prerna Jhunjhunwala
Sir, I understand that so much of effort has gone that our US revenue share has actually declined from 80% plus to now around 60%. But then what is the challenge in increasing our capacity utilization growth given that new geographies are being tapped and new customers are being added? India is growing. So where is the challenge lying in increasing the utilization?
Shrikant Himatsingka
The challenge in Himit Singha specific case, and I can speak only for ourselves Prerna, is that, you know, we were also unfortunately, you know, in a position where we had to face revenue loss because of key customers that were not part of our portfolio anymore, you know, vis a vis BBB and things of that nature. And we also had to face revenue loss on account of brand recalibration because of the brand expenses and model being not as attractive as earlier which, which I had openly shared with stakeholders, at least the way we saw it. So unfortunately in our case we had to battle revenue loss which we had to make up for.
So that’s what had caused some of the headwinds and revenues look stagnant. So in our specific case we were also faced with that situation and hence it looks sluggish as far as growth is concerned.
Prerna Jhunjhunwala
And when do you see the inflection point for growth given that, I mean if tariffs, whenever tariffs normalize, when do we see an inflection point coming in for growth?
Shrikant Himatsingka
You know, we had actually even as early as a few, a few months ago when we had raised our equity through a qip, we had shared openly with stakeholders and also on earnings calls on various occasions, you know that Himatzingha’s assets are in place, our capex program stands concluded other than our annual organic requirements and we believe, we believed that in a two year time frame we were looking at essentially sweating our capacities and we felt that we should be able to optimize our utilization levels, take it to the high 90s and be in a position to deliver revenues of approximately 4000 crores and stay within our EBITDA band of 18 to 22%.
So that was really our mantra. It still is our mantra and our focus but unfortunately for one reason or the other we are seeing pushback on the revenue front which we are battling. So while we settle down with all the other things up until Q4 and now we have started having to face the pushback on account of tariffs. So these are the things that are causing disruption, disruptions and delays in our trajectory.
Prerna Jhunjhunwala
Detailed answer sir, this is really helpful. I’ll come back to the question required. Thank you and all the best.
Shrikant Himatsingka
Thank you.
operator
Thank you. Before we take the next question we would like to remind the participants to press star and one to ask a question. The next question is from the line of Nirav Sawai from Abacus. Please go ahead.
Nirav Savai
Yeah, hi, my question is on the India part of the business. What has been the top line for the quarter and how much has it grown on a yoy basis?
Shrikant Himatsingka
Nirav, can we take this offline because I have to give you some background and foreground we are not sort of disclosing quarterly numbers on geography wise quarterly numbers so. But I’ll be happy to have a discussion with you and give you overall picture of where we are headed with the domestic market and things like and answer those queries for you.
Nirav Savai
Sure. And another thing was on the other expenses side now they have come down by 30%. Y o y is this number sustainable for rest of the year or do we see any changes at least for the next 2, 3/4 in FY26?
Shrikant Himatsingka
We believe it should be range boundaries. It’s reflective of some of the reduction in brand costs and things of that nature. So we believe, nirav that I mean this proportion should be range bound now yes, unless there is a event of some kind, you know, as a result of these tariffs which could causes us to have to enhance certain expenditure. I mean I’m just putting it on the table but unless it’s, you know, unusual or infrequent event of that nature, I don’t see why this should materially change.
Nirav Savai
Right, got it. All right, so thank you. That’s it.
operator
Thank you ladies and gentlemen. We will take that as the last question. I would now like to hand the conference over to the management for closing comments.
Shrikant Himatsingka
So thank you all for taking all the time today. I do hope I have answered most of your queries. Unfortunately these are a little uncertain times and we have to go through it. But please do reach out to us should you need any further clarifications and or have any questions later on and we’d be happy to answer it for you. Thank you and have a good day.
operator
Thank you on behalf of him, Kasaide Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your line.