SPL Industries Limited (SPLIL) AI Stock Analysis

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SPL Industries Limited

(NSE:SPLIL)

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Rating:48Neutral

Price Target:INR 28.00▼(-0.85% Downside)

Action:reiterated

Date:08/27/26

SPL Industries scores below average, driven primarily by severe deterioration in fundamentals: a ~74% revenue collapse since FY2023, negative gross and operating margins, and free cash flow turning deeply negative on heavy capex. A debt-free balance sheet with ₹2,160 Cr of equity limits solvency risk, but falling ROE (13% to 3.3%) shows that capital is not being productively deployed. Supportive technicals — the stock trades above all key moving averages with positive momentum and non-extreme RSI — provide a partial offset, while the low-teens P/E is less attractive than it appears given earnings are propped up by non-operating income and no dividend is paid. Investors should look for revenue stabilization and margin recovery before turning constructive.

Positive Factors

Conservative Balance SheetNear-zero leverage and zero reported debt in FY2025–FY2026 give SPL Industries financial flexibility during a cyclical downturn. Steadily growing equity provides a stronger capital base, reduces refinancing pressure, and preserves capacity to support operations or future investment.

Negative Factors

Sharp Revenue and Operating Profit DeclineThe latest-year revenue contraction and negative gross profit, EBIT, and EBITDA indicate substantial pressure on demand, pricing, or cost absorption. Persistent operating losses would weaken earnings power, limit reinvestment capacity, and make future profitability less predictable.

SPL Industries Limited (SPLIL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 826.50M
Dividend Yield: ―
Average Volume (3M): 1,334
Price to Earnings (P/E): 10.0
Beta (1Y): 1.05
Revenue Growth: -36.35%
EPS Growth: 1.94%
Country: India
Employees: 257
Sector: General
Sector Strength: 55
Industry: Apparel - Manufacturers

SPL Industries Limited Business Overview & Revenue Model

Company Description

SPL Industries Limited, an Indian enterprise established in 1991 and based in Faridabad, specializes in the creation, production, and distribution of cotton knitted apparel and other textile products. The company's business activities are primarily d...

SPL Industries Limited Financial Statement Overview

Summary

Financials are weak overall. Revenue has collapsed roughly 74% from ₹2,694 Cr in FY2023 to ₹695 Cr in FY2026, with gross margins turning negative (-8%) and EBIT margins at -16.4%, indicating the core business is loss-making. Reported net income of ₹70.6 Cr appears driven by non-operating items rather than operations. The balance sheet is the clear strength — zero debt, ₹2,160 Cr equity and a ~92% equity-to-asset ratio provide a strong safety cushion — but ROE has fallen from ~13% to 3.3%, showing poor capital utilization. Cash flow is mixed: operating cash flow remains positive at ₹234 Cr and exceeds net income, but free cash flow swung to -₹193 Cr on heavy capex amid shrinking revenue, raising capital allocation concerns.

Income Statement

22Negative

Balance Sheet

62Positive

Cash Flow

38Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	764.56M	695.40M	1.39B	1.99B	2.69B	1.89B
Gross Profit	31.59M	-55.61M	72.75M	287.11M	301.13M	281.63M
EBITDA	58.32M	-81.69M	159.83M	192.96M	369.04M	317.62M
Net Income	82.79M	70.61M	97.92M	117.51M	238.36M	210.84M
Balance Sheet
Total Assets	0	2.35B	2.22B	2.08B	2.09B	2.10B
Cash, Cash Equivalents and Short-Term Investments	759.41M	759.41M	708.39M	242.32M	327.48M	683.63M
Total Debt	0	39.00K	0	40.00K	106.59M	49.30M
Total Liabilities	-2.16B	190.40M	131.76M	89.85M	216.46M	466.91M
Stockholders Equity	2.16B	2.16B	2.09B	1.99B	1.87B	1.63B
Cash Flow
Free Cash Flow	185.81M	-193.02M	231.64M	42.82M	3.05M	13.62M
Operating Cash Flow	208.37M	234.03M	206.99M	71.48M	140.02M	80.82M
Investing Cash Flow	-187.68M	-232.45M	-208.09M	37.53M	-257.95M	-43.29M
Financing Cash Flow	-136.00K	0	-1.06M	-107.42M	47.78M	-2.21M

SPL Industries Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price28.24

Price Trends

50DMA29.08Negative

100DMA30.30Negative

200DMA29.85Negative

Market Momentum

MACD0.02Negative

RSI48.73Neutral

STOCH43.76Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPLIL, the sentiment is Negative. The current price of 28.24 is above the 20-day moving average (MA) of 28.02, below the 50-day MA of 29.08, and below the 200-day MA of 29.85, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 48.73 is Neutral, neither overbought nor oversold. The STOCH value of 43.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SPLIL.

SPL Industries Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:SPLIL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:DOLLAR	69Neutral	INR 15.17B	13.53	―	1.12%	6.24%	15.54%
IN:PAGEIND	62Neutral	INR 350.23B	45.76	―	1.92%	9.58%	-0.08%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:SPLIL	48Neutral	INR 818.96M	10.00	―	―	-36.35%	1.94%
IN:RUPA	47Neutral	INR 9.84B	12.64	―	2.42%	3.39%	4.53%
IN:LOVABLE	39Underperform	INR 1.04B	32.35	―	―	-10.49%	17.66%
IN:LUXIND	39Underperform	INR 35.73B	34.74	―	0.17%	4.35%	-19.16%

* General Sector Average

Performance Comparison

IN:SPLIL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:SPLIL	SPL Industries Limited	28.24	-10.27	-26.67%
IN:DOLLAR	Dollar Industries Ltd.	267.52	-96.89	-26.59%
IN:LOVABLE	Lovable Lingerie Limited	70.35	-17.69	-20.09%
IN:LUXIND	Lux Industries Ltd.	1188.25	-5.40	-0.45%
IN:PAGEIND	Page Industries Limited	31399.65	-7437.66	-19.15%
IN:RUPA	Rupa & Co. Ltd.	123.75	-65.61	-34.65%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 27, 2026

SPL Industries Limited AI Stock Analysis