Manomay Tex buys into solar to power Rajasthan units
Manomay posted a 50% jump in Q4 profit while securing captive energy, agreeing to buy a 26% stake in a solar startup for ₹3.12 cr.
— 1 earlier story on Manomay Tex India Ltd. →What's new
- Q4 revenue rose 13.9% to ₹203.97 cr; net profit grew 50% to ₹4.99 cr.
- Full-year net profit finished nearly flat at ₹19.64 cr on ₹710.70 cr revenue.
- The board approved a ₹3.12 cr investment for a 26% stake in Lov Smart RJ-1.
Why it matters
The investment is small, but it signals an effort to insulate manufacturing from energy costs. While top-line growth is present, stagnant annual profits suggest pressure remains on margins. Scaling captive power is a defensive play to protect the bottom line from rising utility expenses.
What we're watching
- Impact of the solar project on manufacturing power costs in FY27.
- Whether annual margins can expand past current flat levels.
- Completion of the acquisition by the November 30 deadline.
The full read
Manomay Tex India finished FY26 with a split performance. Revenue growth held up, climbing to ₹710.70 crore for the year, yet net profit stalled at ₹19.64 crore. The fourth quarter offered a brighter snapshot, as net profit jumped 50% to reach ₹4.99 crore.
Profitability is stagnant.
Beyond the results, the board shifted focus to cost control, green-lighting a ₹3.12 crore investment for a 26% stake in Lov Smart RJ-1. This startup will supply 13.65 MW of captive solar power to Manomay’s Rajasthan manufacturing units, a tactical move that aims to replace grid reliance with cheaper, self-generated energy to protect long-term margins from the volatility of external power prices. At less than 1% of the company's ₹328 crore market cap, the deal is a minor capital outlay, but its success hinges on whether it can fundamentally lower production overheads.