Indian cotton yarn makers’ revenue to rise 9-11% in FY27: Crisil

Cotton yarn makers are expected to see stronger revenue prospects this fiscal (FY27) as higher exports and improved realisations support the segment, while polyester yarn producers face volume pressure from cost increases linked to the West Asia conflict, acccording to the Crisil Ratings.Cotton yarn makers’ revenue is expected to rise 9-11 per cent in FY27 on higher exports and better realisations, Crisil Ratings said in a press release.

Crisil Ratings expects cotton yarn makers’ revenue to rise 9-11 per cent this fiscal on higher exports and better realisations.
Improved cotton yarn spreads are expected to support operating margins and healthy credit profiles.
West Asia conflict is expected to raise costs and reduce polyester yarn volumes by 2-3 per cent.

The rating agency said operating margin is expected to expand on improved spreads, while credit profiles are seen healthy.

Cotton yarn spreads are expected to improve by ₹10-15 per kg (~$0.12-0.17 per kg) to around ₹108–110 per kg (~$1.25–1.28 per kg) this fiscal,

The downstream segment referred to in the note mainly includes readymade garments and home textiles. Exports form around 25-30 per cent and around 70-75 per cent, respectively, for these industries.

West Asia conflict is expected to raise costs and dent polyester yarn volumes by 2-3 per cent.

The note further cited 3-4 months of inventory holding at the start of FY27, a detail relevant for buyers and manufacturers assessing yarn procurement and production planning.

Fibre2Fashion News Desk