Himatsingka Seide Limited released the transcript of its Q2 FY26 Earnings Call for Analysts and Investors, which was held on Thursday, November 13, 2025. The call featured management including Mr. Shrikant Himatsingka, Executive Vice Chairman and Managing Director, and Mr. Sankaranarayanan M, President Finance and Group CFO. * The consolidated revenue from operations for Q2 FY26 saw a marginal dip of 9.3%, standing at ₹629 crore compared to ₹694 crore in the same quarter last year. This decline was primarily attributed to the tariff overhang affecting revenue streams from the U.S. markets. * The company reported a significantly higher other income component of ₹77.70 crore in Q2 FY26, up from approximately ₹6 crore last year. This increase was mainly driven by foreign exchange gains of about ₹66 crore due to the rupee's depreciation against the U.S. dollar, with ₹8 crore realized during the quarter and the rest being unrealized mark-to-market gains. * Capacity utilizations during the quarter were: Spinning at 99%, Sheeting at 60%, and Terry Towel at 66%. * Management highlighted efforts to enhance revenue from non-U.S. jurisdictions, aiming to bring U.S. revenue streams below 50% over the next couple of years (currently 60-65%). The India business continues to show consistent year-on-year growth, with expansion in MBO, large-format stores, e-commerce, quick commerce, and private label clients. * Net debt stood at ₹2,436 crore, down from ₹2,680 crore in the same period last year. * The tariff impact has resulted in subdued revenues and a dilution in the margin profile, with EBITDA percentages slipping by about 400 basis points due to price benefits extended to customers. The 50% tariff impact is absorbed through contributions from Himatsingka, retailers, non-applicability on U.S. cotton component (for products with U.S. cotton), and marginal price increases for consumers. The weighted average impact on the company is estimated at 4-5%. * The company expects demand to pick up once tariff issues are resolved and is focused on maximizing installed capacities. * Himatsingka Seide has passed a resolution to raise up to ₹500 crore in equity to deleverage its balance sheet, with plans to execute this in the short term (under 12 months), subject to market conditions.
