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.

Strong financial growth

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%.

Market performance

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.

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