Aastha Spintex moves beyond yarn, plans expansion into fabric manufacturing

Aastha Spintex is expanding beyond cotton yarn into grey fabric and other value-added textile products, a move that could allow the Gujarat-based company to capture a larger part of the textile manufacturing process.

The expansion follows its acquisition of Falcon Yarns, which has more than doubled Aastha’s annual spinning capacity.

The company’s spinning capacity has increased from 7,700 metric tonnes to 17,457 metric tonnes, while its spindle capacity has risen from 25,920 to 61,824. The company now plans to use this larger production base to move further from yarn into fabric manufacturing.

This shift could give the company more products to sell and reduce its dependence on yarn alone.

However, the financial impact will depend on how quickly the new capacity is utilised and whether the move into value-added products improves revenue and profitability.

Aastha has also reported an order book of around Rs 51.46 crore for Falcon Yarns for August to October 2026. The order book covers 38 orders for 17.35 lakh kg of cotton yarn from more than 10 domestic customers.

The company reported Rs 352 crore in revenue and Rs 23.8 crore in net profit in FY26. Its profit has risen sharply over the past four years, from around Rs 1 crore to Rs 23.8 crore, according to the company.

Alongside the business expansion, Aastha has announced shareholder-related measures. The board has recommended a final dividend of Re 0.10 per share, subject to shareholder approval. September 9 has been fixed as the record date for determining shareholders eligible for the dividend.