Micro-Cap Tuni Textile Mills Buzzes with Rs.42 Cr Rights Issue, Rs.10 Crore Order, and 283 percentage Profit Surge amid GST Rationalization

VMPL

Mumbai (Maharashtra) [India], November 27: Tuni Textile Mills Limited (BSE: 531411), a Mumbai-based micro-cap textile manufacturer, has entered a period of accelerated corporate momentum. The company has drawn strong investor attention with three major developments: a sizable ₹42.32 Crore Rights Issue currently open for subscription, the securing of a significant ₹10 Crore purchase order, and a sharp rise in profitability for the second quarter of FY26, driven significantly by GST policy benefits.

Rights Issue: 81:25 Ratio Now Open

Tuni Textile Mills is raising up to ₹42.32 Crores through a Rights Issue that opened on November 24, 2025. The Board has approved a rights entitlement of:

81 Rights Equity Shares for every 25 fully paid-up Equity Shares

Record Date: November 15, 2025

Issue Price: ₹1.00 per share

Issue Close Date: December 08, 2025

Proceeds from the issue are proposed to be used for:

- Loan repayment: ₹8.37 Cr

- Renovation and modernization of the Murbad factory: ₹4.66 Cr

- Working capital enhancement: ₹13.72 Cr

- Machinery upgradation: ₹5.65 Cr

Q2 FY26 Results: 283% Profit Spike

For the quarter ended September 30, 2025, Tuni Textile Mills reported a strong operational rebound:

- Total Revenue: ₹29.90 Cr, up 81% YoY (Q2 FY25: ₹16.52 Cr)

- Net Profit: ₹0.57 Cr, up 283% YoY (Q2 FY25: ₹0.15 Cr)

The management attributes this turnaround to the Union Government's recent GST rationalization. The reduction of GST on apparel priced below ₹2,500--from 12% to 5%--has eliminated the inverted duty structure that previously blocked working capital due to higher GST on raw materials like polyester yarn. The revised structure has supported liquidity and revitalized demand across the sector.

Major Domestic Order Secured: ₹10 Crore

On November 21, 2025, the company announced a ₹10 Crore purchase order from Zee Fabric, Mumbai.

Order Highlights:

- Value: ₹10,00,00,000 plus applicable taxes

- Scope: Supply of finished fabrics for uniforms and apparel

- Delivery Timeline: Within 6 months

Given Tuni Textile Mills' FY25 annual revenue of ₹76.50 Cr, this single order represents a meaningful addition to its order book.

Future Outlook

With stronger demand visibility, improved working capital, and planned capacity enhancements, Tuni Textile Mills has set a revenue target of ₹105 Crore for FY26. The company is advancing modernization at its MIDC Murbad manufacturing unit and actively exploring export market opportunities to drive its next phase of growth.

For further information:

Tuni Textile Mills Limited

Mumbai, India

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