Tuni Textile Mills bags fabric orders worth up to Rs 30.17 crore, equal to about a quarter of FY26 revenue

Tuni Textile Mills has secured three domestic purchase orders for woven shirting and finished fabrics worth between Rs 29.513 crore and Rs 30.173 crore, excluding GST, giving the textile company a sizeable execution pipeline for the next few months.

The orders, received during September 2026 from Disha Clothings, Northakross Syntex and Sharda Corporation, cover about 1.975 million metres of fabric. Deliveries are scheduled over 60 to 120 days, with the largest order required to be completed by January 5, 2027.

At the upper end of the disclosed range, the orders are equivalent to about 26.3 per cent of Tuni Textile Mills’ FY2025-26 revenue from operations of Rs 114.68 crore. Even the lower end represents about 25.7 per cent of annual revenue, underlining the material scale of the contracts for the company.

The largest order by volume is from Northakross Syntex, which has ordered about 1 million metres of finished fabric after approving samples and quotations submitted by Tuni Textile Mills. The order carries an implied base value of Rs 14.50 crore to Rs 15 crore, based on rates of Rs 145 to Rs 150 per metre.

Disha Clothings has ordered about 0.400 million metres of woven shirting fabric valued at Rs 6.52 crore plus GST. The order covers 65/35 poly-cotton to 80/20 poly-cotton fabric specifications, with rates ranging from Rs 163 to Rs 167 per metre. It permits a quantity variation of around 5 per cent and requires delivery within 90 to 120 days.

Sharda Corporation has placed an order for about 0.575 million metres valued at Rs 8.4925 crore plus GST. This includes 0.350 million metres of poly-cotton shirting at Rs 143 per metre and 0.225 million metres of higher-cotton-content shirting at Rs 155 per metre. Delivery is expected within 60 to 75 days.

The combined quantity is equivalent to about 98.75 per cent of the company’s stated annual manufacturing capability of around 2 million metres. However, the company said the comparison was only indicative of scale because execution could involve in-house production, job work, sourcing or trading arrangements depending on product specifications and production planning.

The contracts also need to be viewed against Tuni Textile Mills’ recent sales mix. In FY2025-26, traded finished fabrics contributed Rs 108.96 crore, or about 95 per cent of revenue from operations, while manufactured finished fabrics accounted for Rs 3.86 crore. The new orders span conventional poly-cotton shirting, higher-cotton-content shirting and finished fabrics, fitting into its existing fabric business.

Execution and cash conversion will remain important. The orders carry payment terms generally ranging from 60 to 90 days and remain subject to quantity tolerances, price changes, product specifications, customer acceptance and other commercial conditions. Sharda’s order, for instance, permits quantity variation of up to 10 per cent and rate variation of up to 5 per cent linked to yarn and weaving costs where applicable.

The company had reported negative operating cash flow of Rs 10.19 crore in FY2025-26 amid higher receivables and inventory, while borrowings stood at Rs 29.48 crore as of March 31, 2026. Timely delivery, collection of receivables and management of textile input costs will therefore be key to translating the purchase orders into realised revenue and cash flows.

Tuni Textile Mills said the orders reflected continuing demand for its shirting and blended-fabric portfolio, while its immediate focus would remain on production planning, quality consistency, timely delivery and prudent working-capital management.

As of 3:02 p.m. on September 23, 2026, the stock was trading at Rs 1.66, up 4.4 per cent from the previous close of Rs 1.59. The share price was about 8.3 per cent below its 52-week high of Rs 1.81, while its one-year gain of 14.39 per cent compared with a 3.73 per cent decline in the BSE 500 over the same period.

Disclaimer: The article is for informational purposes only and not investment advice.