Nitin Spinners Limited (NSE: NITINSPIN) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Purushottam Maheshwari — Chief Financial Officer
Dinesh Nolkha — Promoter and Managing Director
Analysts:
Unidentified Participant
Awanish Chandra — Analyst
Resham Jain — Analyst
Madhur Rathi — Analyst
Sanjay Shah — Analyst
Vyom Dagha — Analyst
Yash Tawani — Analyst
Aditya Kumar — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome TO Nitin Spinners Limited Q3FY26 Post Results Conference call hosted by Smiths. 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 Mr. Avnish Chandra from Smiths Limited. Thank you. And over to you sir.
Awanish Chandra — Analyst
Thanks a lot Bhumi. And thank you very much everyone for joining this call. On behalf of Smith Limited, I welcome you all to third quarter and nine month FY26 earning conference call of Nathan Spinners Limited. We are pleased to host the top management of the company. Today we have with us Mr. Denise Nolka, promoter, Chairman and Managing Director of the company. Mr. Nitin Nolka, Managing Director of the company and Mr. P. Maheshwari, Chief Financial Officer. We will start the call with initial commentary on the results and then we will open the floor for question and answers.
Now I will hand over the call to Mr. P. Mahaswari, CFO of the company. Over to you Maheswari sir.
Purushottam Maheshwari — Chief Financial Officer
Thank you Avni ji. Good afternoon and a warm welcome to all the participants to this Q3 and 9 months FY26 earning call of Nathan Spinners Limited. I hope you have had a chance to go through the financial results and investor presentation available on the company’s website and stock exchanges. I will start with a brief overview on operational and financial performance for the quarter and nine months. Post that or CMD Sridharji will give you an overview of industry and business scenario. Coming to our financial and operational performance. Revenue for Q3FY26 stood at Rupees 800.68 crores against Rupees 760.08 crores during Q2FY26.
That is an increase of 5.3% quarter on quarter basis primarily driven by stable demand and higher sale volumes on year to year basis. Revenue declined by 4.5% from 838.87 crores in Q3FY25 to rupees 800.68 crores in Q3FY26 due to weaker demand and in reduced selling prices. Revenue for nine months ended 31st December 2025 with Rupees 23.54crores against last year same period revenue of 2,464 crores. EBITDA for the quarter stood at Rupees 111.54 crores as compared to Rupees 99.56 crores in Q2FY26 and Rupees 117.16 crores in Q3FY25. EBITDA for nine months ended 31st December 20205 is Rupees 322.35 crores against Rupees 351.11 crores in same period last year the EBITDA margin for current quarter stood at 13.93% against Q2FY26 margin of 13.10% and Q3FY25 margins of 13.97%.
Profit after tax for the quarter stood at Rupees 44.41 crores against Rupees 34.78 crores in Q2FY26 and 44.78 crores in Q3FY25. That is an increase of 27.7% on quarter on quarter basis while 0.8% down year on year. Profit after tax for nine months ended 31st December 2025 is Rupees 120.18 crores against last year’s PAT of Rupees 129.06 crores in the same period. EPS for the quarter is Rupees 7.90 and cumulative for nine months is Rupees 21.38 per share. Cash EPS for the quarter is 14.53 and for nine months is Rupees 41.19 per share. In terms of revenue mix, export contributed nearly 61% of revenue and domestic market 39%.
On the operational front, the spinning capacity is running over 98% utilization and woven fabric is operating at over 90 foot utilization. That is all from my side. I now request within SJ to share his insights about industry and business scenario. Thank you and over to Sridharji.
Dinesh Nolkha — Promoter and Managing Director
Thank you Maishriji. Good afternoon everyone. The first half of FY26 was a challenging phase for the textile industry as a whole, primarily due to uncertainties around US tariffs. These pressures persisted into third quarter with the industry continuing to face tariff related headwinds and global trade uncertainties. However, modest recovery was Visible in demand. India’s export of cotton, yarn and fabric remained subdued on a year on year basis. As far as cotton is concerned, the cotton prices were favorable during the quarter due to temporary removal of import duty by the government. Now it has again started beginning its earlier trend of trading at a premium than the international cotton prices.
Going forward we expect stable raw material prices during the quarter yarn prices at marginal decline in tandem with the reduced cotton prices. However, we expect the prices to improve and also the demand to stabilize going forward long term. If we see the long term perspective, then structural tailwind of the sector remains intact. The recent budget announcements also reflect the government focus on textile with announcement of national fiber mission, expansion of textile parks and textile skilling initiatives, etc. Recently there were positive developments around the free trade agreements with the eu. It is said to transform India’s textile industry as well as all other sectors with removal of long standing tariff disadvantages of Indian product in the European market.
Industry is now awaiting faster implementation of EU and UK trade deals and expect stronger order flows and improved competitiveness in these markets. Yesterday’s announcement of tariff reduction by US will also further stimulate demand recovery and improve the performance of the Indian textile industry going forward. Coming to the company’s performance, quarter three FY26 was moderately improved as compared to previous quarter, largely driven by the stable demand, favorable cotton prices and optimum capacity utilization. Although there was continuing impact of ongoing uncertain global uncertainties which had impacted the margins. Going forward we foresee improved margin profile as demand as well as raw material prices are stabilizing.
We’re also focusing on other geographies to widen the customer base. We also expect favorable impact of EU FTE as we have strong foothold in EU markets and had been one of the largest exporter of cotton yarn in EU countries from India. The announcement of US regarding tariffs will also have favorable impact on the demand as well as margins going forward. Regarding CapEx, our capacity expansion of spinning and weaving is progressing well. Post its completion we’ll be able to offer wider product range to our existing customers and also will be able to cater to new demand from domestic market as well as international market for finished woven fabrics.
They’ve already commissioned certain modernization and balancing equipment and about 4.6 megawatt solar plant is expected to get operational in current quarter. The hybrid power purchase agreement of 18 megawatt announced in quarter two has started partial power supply and it is expected to get fully operational in the Q1 of the FY27. We have also announced a new CapEx which has been there to mitigate the power price hike in the state of Rajasthan and further increase our renewable power footprint for the company. The board has approved an additional capex of 230 crores for captive solar power capacity.
About 41.51 megawatt ac out of which 33 megawatts will be under open access at Jodhpur district and additional 8.1 megawatts of solar power capacity within our Chittaudgarh unit premises. Both of these capacities are expected to get operational by Q2FY27. The cumulative renewable power footprint will be about 40 to 45% of the total power consumption and will result in significant reduction in our power costs. With this I would like to open the floor for the question and answers.
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 comes from the line of Reena Kashyap, an individual investor. Please go ahead.
Unidentified Participant
Yeah, hi. Thank you for the opportunity. I just had a few questions. So the first one being the capex done on the solar power. Can you give us details on this 23 crore expense and the benefits? Exactly. Can you quantify them for me? How much are we currently like how much are we currently generating internally and what is going to be the captive power? The second question is regarding the US announcement yesterday of the tariff reduction. Can you help us understand how this will impact nickel spinol quantitatively? What will be the impact on revenue?
Dinesh Nolkha
Yeah, let me first answer your second question regarding the U.S. tariffs. Basically we had an exposure of our knitted fabric business in US and which contributed to about 3 to 4% of our export sales. That was a direct sales and apart from this there was indirect sales of about 7 to 10% to our customers in India who used to export to us were predominantly dependent on the US to export. So that was impacted and we had to divert these products to various other markets and maybe under utilize our melting capacity also. So with this tariff reduction and we becoming competitive in comparison to rest of the our competing countries I think we will be back, this business will be back with us in short time.
So that should add to our demand profile and also which could ultimately lead to the margins improvement also regarding second question, first question was regarding your power. So this is not a 23 crore. It is 230 crore investment where we will be putting about 60 megawatt of DC solar power capacity. In AC terms it is 41 megawatt with a battery backup capacity of about 38 megawatt hours. So this will be set up in Rajasthan, in our. In Jodhpur and some will be within our own campus. So expected power cost savings from this will be. This particular project will be about 51 crores going forward.
So this is the, this is what I think you are wanting to know exactly.
Unidentified Participant
Yeah, I wanted to understand how much are we currently generating and what will be the captive power from this capex.
Dinesh Nolkha
So total we are generating at this point of time. I think about 6.6.5 crore units we are generating at this point of time. My figures are right.
Purushottam Maheshwari
So current solar renewal capacity is 3. Crores.
Dinesh Nolkha
Crore units per annum.
Purushottam Maheshwari
Yes, 3 crore units.
Dinesh Nolkha
So this will be adding how much.
Unidentified Participant
How much will it be after the capex in totality?
Dinesh Nolkha
After this all the capex which we are going to do our total solar generating capacity will be about 21 crore units every year. This is inclusive of our existing capacity and then the hybrid power investment which we have done plus the investment which we are already doing in our own campus here. So this will be about 45% of our requirement.
Unidentified Participant
Just another question. Was there any impact on the financials from the new labor code?
Dinesh Nolkha
No, we were very well as per the laws only of the new labor codes. We’ve already followed that with the graph policy also. So there is no impact on us.
Unidentified Participant
So this was done previous to the code was out. We were already.
Dinesh Nolkha
We were already complying with those. All the provisions which is, which has been, which has come up now, they were already in compliance.
Unidentified Participant
Sorry, just one more question on. On the domestic demand. I think last call you had mentioned there was more interesting, you know in the domestic market even your share of exports have fallen and domestic has increased. How do you see this going forward?
Dinesh Nolkha
I think domestic demand should remain as it is. We are expecting it to be stable and going forward remain good itself. Because a lot many exporters who are selling to the US market will also be back in business.
Unidentified Participant
Okay, thank you.
operator
Thank you. Our next question comes from the line of Resham Jain from VVD Asset managers. Please go ahead.
Resham Jain
Hi, good afternoon Dineshi. So I have two questions. The first one is with respect to the weaving expansion. Almost close to doubling of the capacity. So is it only processing or is it processing plus weaving as well?
Dinesh Nolkha
It is both weaving as well as processing.
Resham Jain
Okay. So it’s hundred percent integrated facility which is coming up.
Dinesh Nolkha
Yes, even the spinning is also integrated with this. So it’s a project which is able to have its own spinning, weaving and processing all together.
Resham Jain
Okay, understood. And said, this particular weaving and finishing which is coming up, is it yarn dyed or it is just for bottom weights or what kind of product we are planning here?
Dinesh Nolkha
Here we are also adding yarn dyed capacity. So this project also includes our yarn dyeing capacity. So we’ll have yarn dyes as well. As already we are into bottom bits. So that will always also be there in this. And we also have the printing and finishing facilities as well. And coating facilities also in this.
Resham Jain
Okay, understood. But largely it will be bottom weights. That’s how one should think.
Dinesh Nolkha
No, it should not be. It is not primarily bottom weights. Now the ratio we are expecting is 50 50. At the moment it is about 65 35. Now it will become 5050 after this expansion.
Resham Jain
Understood. And. And how much is for the like x spinning, what will be the capex out of 1120 total project cost. What. Will be like X spinning? What will be the capex for weaving processing?
Dinesh Nolkha
If you remove the spinning part, I think it is going to be about 600 crores.
Resham Jain
Okay, understood. And sir, as of today between weaving and spinning, what will have which segment will have better margins? I know you are integrated. But still if you have to choose, you have to think between the two businesses which is more profitable.
Dinesh Nolkha
I think today as on today weaving and processing cumulatively is better than spinning.
Resham Jain
Okay. Understood, sir. Perfect. Thank you. Thank you, sir. And all the best.
Dinesh Nolkha
Thank you.
operator
Thank you. Our next question comes from the line of Madhur Rathi from Countercyclical investment. Please go ahead.
Madhur Rathi
Sir. I’m trying to understand that in our fabric segment. So what is the bifurcation between weaving as well as knitted fabrics and the capex that we are doing in fabrics, is it only in weaving or in knitting also?
Dinesh Nolkha
The capex which we are doing is only for vba. It is not going to be for knitting. And the breakup is about. If you see the total sales is about 160 crores. 61 crores. Out of which I think 130 crores is for weaving and 30 crore is for knitting. Okay.
Madhur Rathi
Okay. So. So. And sir, I can see that our knitted fabric volume is down year on year from 1564 tons to around thousand tons. So what is the reason for this?
Dinesh Nolkha
Basically because of this market we had a large exposure of knitted fabric in the US market. So because of this tariff issues we had to scale down the operations in this particular segment.
Madhur Rathi
What is the per kg realization as well as the spread on cotton and yarn?
Dinesh Nolkha
Yarn realization for this quarter was around 250 rupees a kilogram. And okay, cotton. Cotton cost was around 151 rupees. So the spread is around 899 rupees.
Madhur Rathi
So now with the favorable trade deal with USA and with Europe also though it might take some more time EU FTA to get operationalized. Sir, you think that the golden age of Indian textile industry is now ahead of us?
Dinesh Nolkha
I hope so.
Madhur Rathi
What kind of spreads do you foresee going forward?
Dinesh Nolkha
I can. I do not want to forecast anything. But definitely I can say that we have seen. We have already passed the worst and we should see better times ahead.
Madhur Rathi
Great answer. Lastly, sir, between knitted fabric as. As well as woven fabric, which of the two is more profitable?
Dinesh Nolkha
In woven fabrics we are completely integrated with the dyeing and finishing. So definitely with the woven fabric, with dyeing and finishing, everything put together is definitely more profitable.
Madhur Rathi
So knitted we are not. Since you said we are not expanding capacity. So our future plans are on the weaving and spinning side only
Dinesh Nolkha
at the moment.
Madhur Rathi
Yes. Okay, sir. So thanks a lot.
operator
Thank you. Our next question comes from the line of Sanjay Shah from Ask Securities Private Limited. Please go ahead.
Sanjay Shah
Yeah. Good afternoon sir. And appreciate a decent performance in this volatile situation. So my question was more towards the most growth levers. What we see on fabric side, sir, can with this 35 million meters of fabric capacity, how much will be finished woven and knitted fabrics? Was my first question. And second was what is the expected EBITDA margin differential between yarn and finished fabrics?
Dinesh Nolkha
First of all, it will be all this 35 million meters capacity will be all for woven fabric only. Nothing for knitted capacity. It is 100% for woven only. And as far as margin profiling is concerned, we have also told in the past that overall margin of the company, EBITDA margin of the company which we are operating at should be improved by 100 to 150bps given the new composition which we are going to have going forward because of this more value addition part on the weaving and finishing side.
Sanjay Shah
That’s great. And so when we see the ramp up after commissioning this capacity and we do. Did we did any trial order or we have got any advance order on. That side
Dinesh Nolkha
already we are operating our weaving capacity at full, full stream. We are running at more than 90% capacity and we have already. It’s not a new product specifically for us. So we can easily increase our footprint. And with this new FTA is happening in Europe us it is opening a lot of new customers in these markets where we are not present. So this should be, this could be a very good beginning for us for the to expand our footprints in the export market which we are not there so much in the fabric business.
Sanjay Shah
Thank you sir and we show good. Luck for coming future.
Dinesh Nolkha
Thank you.
operator
Thank you. Our next question comes from the line of Vyom Daga from Valcor Capital. Please go ahead.
Vyom Dagha
Hello sir. Thank you for this opportunity. So my first question is if you could share what the current spreads are and how do you expect them to normalize over medium term?
Dinesh Nolkha
Pardon? Can you repeat the question please? Current spread?
Vyom Dagha
Yes, a current cotton switch.
Dinesh Nolkha
I’ve just. In my last question I’ve answered that it is about 9899 rupees. I think with the present current cost it is a reasonable kind of spread which in the good times go up to 100150020 rupees. So if the demand stabilizes and the raw material prices stabilize, this is, this should improve going further.
Vyom Dagha
Okay, so my next question is once the demand recovers from us, how fast do you expect the supply to ramp up? Like the mills which were previously shut down, what proportion of them do you expect them to recover at this point of time?
Dinesh Nolkha
Basic first the demand has to come in. This is a cycle wherein we are out of the cycle for last six months. The new business will come in and that should first fill up the existing capacities which are running and improve upon the demand. Then only we should be seeing, I don’t foresee some of the mills which is not operational and not viable today will not come into business because it’s nearly one and a half years since they have been down so significantly improvement in the capacity. Maybe new capacity may come in going forward, but the existing old mills coming back in business is a difficult task at the moment.
Vyom Dagha
Okay, so and my last question is if you can give us some timeline on the capex, when do you expect the spinning and the fabric division to be the capacity to be set up?
Dinesh Nolkha
First of all, the fabric capacity should be there in the, in early second half of this year of next financial year. We should be, we are going to commission the things from June, July onwards and expect the production to start somewhere from October, November onwards. So second half beginning, we should have some production coming up and maybe ramp up the capacity by the end of this next financial year. As far as spinning is concerned, I think spinning will take one more quarter and we should be ready by November, December of, Not by the, by the end of this calendar year, I think.
Vyom Dagha
Okay. All right. Okay, thank you.
operator
Thank you. Our next question comes from the line of Tanishq from Antique Stockbroking. Please go ahead.
Unidentified Participant
Thank you for the opportunity. My question is can we sustain the current level of gross margins or EBITDA margins as there has been increase in the prices of domestic cotton, do we see the yarn prices going forward increase? That’s one day cotton.
Dinesh Nolkha
I think as we have seen that cotton, domestic cotton prices have increased also. The yarn prices have also increased during the current quarter. So more or less it is. The differentials are still maintained.
Unidentified Participant
Okay, so my second question. Do we see yan sizes to go up going forward due to the U.S. trade deal? And that is.
Dinesh Nolkha
Of course it should normalize. What we have seen is that during last one and a half year, initially because of Russia, Ukraine issues then happening and Europe getting affected and then this US effect coming in, the demand was very subdued. So going forward we expect the demand to normalize. And in the meantime we have already seen some capacity shutting up. So it will be a stable kind of demand where the margins should also stabilize and improve going forward.
Unidentified Participant
Okay, thank you.
operator
Thank you. A reminder to all the participants, if you wish to ask questions, you may press star and 1. Our next question comes from the line of Madhur Rathi from Countercyclical Investments. Please go ahead.
Madhur Rathi
Sir. I wanted to understand the domestic cotton pricing scenarios. Are the. Are zero imports still there after the 31st of December or now there is again 11% import duty and our domestic cotton prices trading at a premium with export like international cotton prices? And if so, then what happens to the competitiveness of the domestic cotton industry in the export markets?
Dinesh Nolkha
Yeah, first of all, zero duty regime is over. Now it is 11% duty back to 11% duty for export purposes under advanced license. They have allowed us to import in duty free. But then the drawbacks and other benefits are not being given on that. So the. So that is. So that is an implication cost of about 6 to 7% in at this point of time, the Indian cotton prices, if we consider without duty, then definitely they are expensive than the international prices. But if with duty, if we can with whatever the duty impact, which is there 6, 7%, then I think Indian cotton is still cheaper than the international prices.
And as far as competitiveness is competitiveness is concerned, I think we have a large domestic market and the ratio of the export to domestic is about 70, 30. And we are able to somehow manage with nominal Margins. If we have to have much better margins what we have than today then we need to have this policy of consistent duty both or international price parity in the raw quarter.
Madhur Rathi
Right, sir. And sir, any plans to get into garmenting going forward?
Dinesh Nolkha
As of now we do not have any definitive plans to get into the government. Okay, sir. Thank you very much.
operator
Thank you. Our next question comes from the line of Priyam Shivastav from AC Capital. Please go ahead.
Unidentified Participant
Hi. Thank you so much for the opportunity. I just wanted to understand the trend with total spindles in the country. And second, are you seeing market shifting away from the versus states which offer better incentives like Gujarat, Rajasthan and Punjab.
Dinesh Nolkha
As far as spinning capacity is concerned, I think we have in India total about 56 million spindles installed capacity. Operational capacity is about 42 to 43 million spindles. So operating about at 78 to 80% levels. As far as shifting is concerned, I think there is no new incentives by any other state in last one or two years. Except I think Odisha offering some new textile policy. And that is. And the shift is also not very major. If you see in proportions the capacity is shifting towards whatever capacity had to shift to Gujarat or to Madhya Pradesh or to Rajasthan has already happened in last three, four years back itself.
So there has been no major change in last two years shifting pattern of the spinning capacity.
Unidentified Participant
Okay. Like around what percentage of capacity have like shifted out of the report to these days?
Dinesh Nolkha
I think there is no shift as such. Tripur is more of a knitting segment. Knitting, knitting area, dying, finishing, garmenting area. And that has remained. It has remained their forte and still they have a forte on that. So that has primarily been there. Yes, it has been shifted within Tamil Nadu also due to the environmental concerns of that within the nearby areas itself only.
Unidentified Participant
Okay, got it. Thank you so much.
operator
Thank you. Our next question comes from the line of Resham Jain from VVD Asset managers. Please go ahead.
Resham Jain
Thanks for taking the question again. So I have this question on cotton which has been a key kind of challenge for the whole spinning industry per se. So what I could see is that cotton productivity per acre in India has been flattish or coming down in last five, seven years. While globally some of the countries we have consistently seen that it has been increasing. And this has to do with the new variety of cottonseed which somehow is not being allowed in India. So from an industry perspective, are we taking any steps to improve the overall productivity per acre? Because eventually this is going to be the differentiator for Indian spinning industry.
It has been like the Indian cotton prices always has been 15% lower than US cotton prices. And that’s how we always remain competitive. Any thoughts on this, sir?
Dinesh Nolkha
Yeah, of course we have. Of course not at individual level in the company but on the association levels. And along with the government body there has been a sincere effort to improve the productivity all over the country as well as we have already means there is an MSC policy in the country as you are aware. And there has been an average increase of every year increase of about 5 to 7% of the minimum support prices. We have been requesting government that we need to work on the other side and that already they have set up a complete full fledged committee with the industry members also wherein we have to go and improve upon the productivity side.
So we need not increase the price but the income of the farmer increases. And also that suffices the requirement of the industry. Of course it’s not a six months or a one year job but for a long term already there has been a lot of initiatives happening and we may see the results coming in going forward in another one to two years time.
Resham Jain
Okay. Any states where you could see this happening?
Dinesh Nolkha
Lot of efforts has been done in Maharashtra also. Some parts of Rajasthan also are giving better productivity and results. So that is also there. So. But there has been a first in Madhya Pradesh and Maharashtra primarily more so towards the development.
Resham Jain
Okay. And so just one last point with respect to this. Given that we have very good exports, so for us compared to the industry, we will always be little better off given that we can use advanced license to some extent from a cotton price perspective.
Dinesh Nolkha
Of course.
Resham Jain
Thank you, sir.
Dinesh Nolkha
Yeah. Yeah.
operator
Thank you. Our next question comes from the line of Yash Tawani from Amara Capital. Please go ahead.
Yash Tawani
Yeah. Hi sir. So I have two questions. So one is on the subject business side. So I just wanted to get a sense that with the new facility coming in, what is the utilization that we expect to run on by the next year? Once it runs on a full capacity, once it’s fully operational, what is the utilization that we expect there? And second is on the fabric business side. So, so what is the bifurcation we. Have on the fabric business sales in terms of how much goes to let’s say the brand owners or the garment manufacturer versus the trader, how the bifurcation does that side? So these are the questions.
Dinesh Nolkha
Next year we are first of all regarding the capacity utilization. We’re already running our existing capacity on 90% plus site. And the new capacity which is going to come in, we are expecting that next we should be Able to ramp it up to at least 80% capacity in the next financial year. 2728. So that is the capacity ramp up which we are expecting. As far as this breakup of brand owners and others, we have not yet worked out on that particular part. At this point of time. I can just give you a ballpark picture that the traders are having nearly a 1/3 share and the brand owners in readymade garage garments are having 1/3 shares.
1/3 each. So exactly. I am not having the data, so I do not want to comment on that. But maybe we’ll get ready this data and then comment going forward.
Yash Tawani
Perfect. And is the margin similar in all of these? The trader versus them or is it like hierarchy by Citizen cricket? Which comes first? Not the just the hierarchy.
Dinesh Nolkha
Of course the brand of brand. Brand owners, the consistent kind of demand is definitely better and their expectation of the quality of the fabric is also better. So there the margins are better. And of course then secondly comes the ready made garment manufacturers and then the trader because traders ultimately stock and want to have some margins with them as well. Perfect.
Yash Tawani
Thank you.
operator
Thank you. A reminder to all the participants, if you wish to ask questions you may press Star and one. Now our next question comes from the line of Aditya from UK Capital. Please go ahead.
Aditya Kumar
Hi sir. Am I audible?
Dinesh Nolkha
Yes, yes please.
Aditya Kumar
Sir, could you please clarify the current capacity utilizations I list out for the knitted and women segment.
Dinesh Nolkha
Our capacity utilization at this point of time for spinning is about 99%. For weaving processing it is about 91% and for knitting it is about 40%.
Aditya Kumar
So for knitting you said that US tariffs impacted then it the knitting segment and you said that you are redirecting the volumes to other international markets. With the current recent US deal in place, do we replan or reengage the US market or scale up the business in the us? How is this going forward?
Dinesh Nolkha
Means we have to cautiously trade with them. This experience has not been good. We have never expected that US this can happen in US So definitely we’ll try to regain the market share. Already our utilization, especially in knitting is lesser. So we try to regain the business there. But of course not become as dependent as we were in the past on the US market and of course with UK market and EU means free trade happening agreement happening over there. You could have really good times in the European market where we have a very good football.
Aditya Kumar
With the removal of the cotton duty exemption. Do antifs anticipate higher raw material performance going forward? Especially in the imported cotton of course.
Dinesh Nolkha
Means prices of the Imported cottons have remained more or less at the same level what it was there in US dollar terms only that the duty proportion since we are doing it in advanced license, it’s not going to have major impact on us. Of course our sales incentives goes down. That is what we have. So that should not have a major impact on the raw material cost as such for us. Domestic cotton prices of course already have. Because of that have already gone up by about 5% what was there in the last quarter from now.
Aditya Kumar
So just last thing on the recent news from the Bangladesh where the report shows that the cheaper yarn imports has significantly disrupted spinning and textile sectors in neighboring countries. So are you seeing any impact.
Dinesh Nolkha
At this point of time? They have not taken any action or anything. And in fact our industry associations have given a due clarification to them about this. When we say they have imported cottons which is cheaper than us, they do not have any duty, the labor cost is less than us, their power cost is less than us. So how this spinning industry can become uncompetitive in comparison either we are too efficient and they are inefficient, I don’t know. But we have given you and this is something. A euphoria has been created there by the spinning industry there.
And garment industry in Bangladesh is overwhelmingly opposing this particular move at this point of time till now there is no action has been taken on that side. And the business continues as it is.
Aditya Kumar
So we our business doesn’t change. No impact.
Dinesh Nolkha
As of now there is no impact.
Aditya Kumar
Thank you sir. Thank you. That’s it from us.
operator
Thank you. Our next question is a follow up from Madhur Rati from Countercyclical Investments. Please go ahead.
Madhur Rathi
So thank you for the opportunity once again sir, I wanted to understand with the new 35 million metric, 35 million meters of the fabric that we are planning to add. Sir, will this be a higher realization fabric? Because we are expecting thousand crore revenue from the segment versus on a similar volume we did 700 crores in FY25.
Dinesh Nolkha
We are expecting a revenue of about 650 to 700 crores only. From the fabric side balance, 300 crores will going to come from the yarn. We are also putting up some yarn died capacity which would be put for sale as well as some additional yarn capacity also. So 300 crores will come from 300 to 350 crores will come from yarn.
Madhur Rathi
Okay answer. Do we can we expect our margins to conservatively move to 16% by FY28 with ramp up of our fabric capacity?
Dinesh Nolkha
I Can just say that whatever margin profile we have. Of course margin depends on many other factors. But whatever margin profile we have in we should have a because of higher value addition, it should improve the things by 100 to 150 bits going forward.
Madhur Rathi
Answers that the base would be so. So the current base of 14%. Can you expect that 100, 250 basis point improvement?
Dinesh Nolkha
Yes, exactly. Exactly. Exactly.
Madhur Rathi
Okay, sir, so that was from Venture. Thank you so much and all the rest.
operator
Thank you. Our next question comes from the line of Vishal Prasad from VP Capital. Please go ahead.
Unidentified Participant
Hi, good afternoon. So I have one question. In the past when someone asked you about our interest in moving into garments, you mentioned that if we have to do garments then we would need to. Have some incentives like PLI as otherwise. It would not be very remunerative for us given the EU FTA and US Trade deal. Do you think there is a case for us to think about garments business even if PLI is not available?
Dinesh Nolkha
Definitely. With this kind of markets opening, I think we must look into that because we already have the alignments with the various international brands. So we’ll definitely look at this aspect as well going forward. But at this point of time we do not have any definitive plans.
Unidentified Participant
Right. So if just in case you think about lamenting, probably it will be in. Two, three years or even more.
Dinesh Nolkha
It doesn’t take that much time to establish. But our first target today is to establish our this new fabric capacity which we which is coming up. That is a major league today because we are doubling the capacity. And maybe post that we may definitely have a look at these aspects also.
Unidentified Participant
Okay. And second a point, if I remember. Correctly you mentioned that in garment business there is challenge of labors because they are not available at a lot of places. They come from two or three states in India and there the garmenting business is still in fancy like Bihar or Jharkhand or Madhya. So given your experiences do we have. I mean how do you think about getting into governments if labor shortage is a consistent problem?
Dinesh Nolkha
First of all, we have not thought about it as of yet. So once we think get into the details, definitely we’ll work out our ways. As far as I understand, a lot of skilling is required. It is a job where lot of skilling has to be done and then only we can do. Hopefully this new government does not. Government has launched a new scheme Summer two where they are killing lot of people and they are giving incentives for killing the people. This should also help going forward in killing the workers for the garmenting business also.
So we’ll. I have not yet gone. We have not yet gone in the nitty gritties of how we want to go about and what is the area, which mark, which areas, which market. So it would be not right for me to comment at this point of time on that subject. Once we are ready with this then definitely will share all the details with.
Unidentified Participant
Thank you.
Dinesh Nolkha
Yeah, thank you.
operator
Thank you. Next we have a follow up question from Reena Kashyap, an individual investor. Please go ahead.
Unidentified Participant
Yeah, thank you again for the opportunity. Just the last couple of questions. How much is the share of UK in your exports and how do we see that increase? Like if you can quantify that for me. And second is just in continuation of the previous participants question that it’s not garmenting. Are we also exploring any inorganic growth opportunities?
Dinesh Nolkha
Yeah, first of all, as far as UK market is concerned, we have exposure in yarn as well as fabrics India. We have exposure to the various brands which are working from the y UK market. And also we have yarn business there which is today not very significant, maybe about 3, 4% of our total sales. But with this FDA getting into place, this could increase multifold. Second question was regarding. Second question was regarding. Can you repeat the second question please?
Unidentified Participant
Yeah, just you mentioned garmenting that you don’t plan on getting into governmenting right now. Maybe after a couple of years. But side by side, are you exploring any inorganic growth opportunities?
Dinesh Nolkha
Yeah, inorganic. We keep on looking at it but we do not have many. We have not been able to find a right fit. So if something right comes up, we are open to that.
Unidentified Participant
Understood. Thank you so much.
operator
Thank you. As there are no further questions, I would now like to hand the conference over to Mr. Avnish Chandra for closing comments. Over to you sir.
Awanish Chandra
Before taking our closing comment, one question. Sir, you mentioned that every CapEx line item will be get completed in 2027 by November December. So. And history says that you read the 100% utilized and very fast things get stabilized. So any thought on expanding our existing capacity further? Any plan you have started thinking about.
Dinesh Nolkha
As of yet we have not planned any new capacity expansion. But with this kind of all the FTA is happening, the market getting opened, we will definitely look in for the growth prospects of going forward as well. So once we are ready with the prospects maybe then we can share with you. But definitely as a growing company we have to look forward as well.
Awanish Chandra
Okay sir, thank you very much Dinesar Nitinji and myself sir for giving us this opportunity to host the call. Sir, your final closing comment.
Dinesh Nolkha
Thank you. And first of all I would like to thank everyone for taking out time for joining the call. I hope we have been able to address all the queries. I also thank Smith Team and Abhinav for posting the call. For any further information or other things, you can get in touch with our finance team or SGA or Investor Relations Advisors. Thank you and see you all over the next yearly conference call as well. Thank you.
operator
Thank you on behalf of Swift Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.