Himatsingka Seide Limited reported its Q4 FY25 and Full Year FY25 financial performance and strategic updates during its investor call on May 30, 2025.

• Total income for Q4 FY25 marginally corrected by approximately 3% to ₹682 crore, compared to ₹702.8 crore in the previous year. This was attributed to recalibration initiatives concerning brand portfolios.
• For the full fiscal year FY25, consolidated total income remained largely range-bound at ₹2,843 crore, against ₹2,862 crore in FY24.
• Capacity utilization for the quarter stood at 99% for the spinning division, 60% for sheeting, and 68% for terry divisions.
• The company is nearing the completion of its brand recalibration exercise, with approximately ₹150 crore of annual impact remaining to be made up. This involves reducing exposure to or exiting certain international brands while enhancing its portfolio in India.
• Growth in Q1 FY26 is expected to be muted due to the imposition of tariffs, but the company anticipates organic growth and improved capacity utilization from Q2 FY26 onwards.
• In the Indian market, Himatsingka operates with three brands: Himeya (premium bedding/bath), Atmosphere (drapery/upholstery), and Liv (mass bedding/bath). The company aims for India revenues to comfortably cross ₹100 crore and inch towards ₹200 crore in FY26. India revenue for FY25 was closer to ₹100 crore, slightly below. The India branded business is expected to achieve approximately 15% EBITDA margins once it reaches a scale of around ₹200 crore.
• The recently signed Free Trade Agreement (FTA) between India and the UK is seen as an emerging opportunity, with enhanced dialogue with UK clients. However, the full benefits are expected only once the FTA comes into effect, estimated to be in about a year.
• Regarding US tariffs, the 10% tariff on Indian products is expected to have a slight short-term impact on revenues and operating margins. Despite this, management sees potential opportunities given the differential tariffs for India and China, reinforcing the “China Plus One” theme. There are also media reports questioning the legal validity of these tariffs, which the company cannot verify.
• The company continues to focus on its deleveraging initiatives. Consolidated net debt stood at ₹2,425 crore, down from ₹2,634 crore in the previous year. The long-term target is to bring down debt to ₹1,500 crore to ₹1,700 crore over a 2-3 year horizon. For FY26, an additional incremental deleveraging of ₹100 crore to ₹200 crore is expected from non-core real estate hive-offs and organic reduction.
• Capex for FY26 is expected to be muted, significantly lower than the typical organic capex requirement of approximately ₹60 crore.
• Sundry debtors have increased from an average of 90 days in FY23 to about 140 days, primarily due to higher client credit requirements and elongated supply chains. The company aims to reduce this to approximately 90 days over the next 18 months.
• The company reported a ₹94.6 crore hit in goodwill impairment for the quarter and the year, related to the repositioning and calibration of its brand portfolio, which included reducing exposure to or exiting certain international brands like Tommy Hilfiger and other licensed brands.
• Mr. Shrikant Himatsingka, Executive Vice Chairman & Managing Director, highlighted the company's focus on strengthening its financial position, deleveraging, and optimizing working capital cycles.