Newly listed textile stock Aastha Spintex eyes capacity expansion through Falcon Yarns acquisition

Aastha Spintex, the Gujarat-based integrated cotton yarn manufacturer that made its stock market debut on July 6, 2026, said in its latest investor presentation that it expects to more than double its spinning capacity through the acquisition of Falcon Yarns, a move aimed at meeting rising demand and expanding its production capabilities.

Following the acquisition, the company's spinning capacity is expected to increase from 7,700 MT to 17,457 MT, while its spindle capacity will rise from 25,920 to 61,824, representing a 2.3x expansion.

The company said its order book exceeds current capacity, indicating that the Falcon Yarns acquisition is intended to address existing capacity constraints and support future growth.

The acquisition is being executed in three tranches, with ₹20 crore already paid before the IPO. According to the company, the balance payment from the IPO proceeds is pending due to procedural formalities and will be completed shortly in line with the agreement.

For FY2025, Falcon Yarns reported revenue of ₹249.44 crore, net profit of ₹1.37 crore, operating cash flow of ₹11.85 crore, and a net worth of ₹50.30 crore.

The company has delivered robust financial growth over the past few years. Its net profit surged from ₹1.1 crore in FY2023 to ₹23 crore in FY2025, translating into a two-year compound annual growth rate (CAGR) of 356%, according to its BSE filings and investor presentation.

Revenue also witnessed steady growth, rising from ₹240 crore in FY2023 to ₹352 crore in FY2025, representing a two-year CAGR of 21.2%.

Operational performance improved significantly as well, with the operating profit margin (OPM) more than doubling from 5.87% in FY2023 to 14.16% in FY2025. EBITDA margin also expanded from 6.05% to 14.45% during the same period.

The company's growth has coincided with global apparel brands increasingly shifting sourcing to India under the China+1 strategy. The Indian textile industry is projected to expand from $195.4 billion in 2025 to $623.34 billion by 2035, reflecting a CAGR of 12.3%.

Aastha Spintex shares debuted on the stock exchanges on July 6, 2026, and have since traded in line with the broader weakness in the small-cap segment. The stock is currently trading below its IPO issue price of ₹136, which some market participants view as an attractive entry point from a long-term perspective.

The company's listing on both the NSE and BSE provides liquidity for retail as well as institutional investors.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and contin...