SPL Industries Limited (SPLIL) AI Stock Analysis

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SPL Industries Limited

(NSE:SPLIL)

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Rating:60Neutral

Price Target:INR 29.00▼(-5.81% Downside)

Action:reiterated

Date:08/27/26

Overall score reflects a strong, low-risk balance sheet offset by materially deteriorating operating results and a sharp swing to negative free cash flow. Technicals provide some support with price trading above key moving averages and moderate positive momentum, while valuation looks fair (P/E ~12) but is constrained by uncertainty around the sustainability of earnings given negative operating profitability.

Positive Factors

Low LeverageA debt-free balance sheet gives SPL Industries financial flexibility during a cyclical textile downturn. Low fixed obligations reduce refinancing and interest burdens, allowing more capacity to fund operations, absorb volatility, or pursue recovery without depending heavily on external financing.

Negative Factors

Revenue ContractionThe sharp revenue decline signals weakened demand, reduced volumes, or adverse operating conditions across the textile business. Continued contraction would pressure utilization and limit operating leverage, making it harder for the company to restore margins and convert its asset base into durable growth.

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

Market Cap: INR 798.95M
Dividend Yield: ―
Average Volume (3M): 1,493
Price to Earnings (P/E): 9.8
Beta (1Y): 1.23
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

Fundamentals are mixed: the balance sheet is a major strength with essentially no leverage and steadily growing equity, but operating performance weakened sharply. FY2026 revenue fell ~22% YoY and gross profit/EBIT/EBITDA turned negative, while net income remained positive largely due to likely non-operating support. Cash flow quality improved at the operating level (OCF > net income), but free cash flow swung deeply negative, reducing visibility.

Income Statement

38Negative

Balance Sheet

80Positive

Cash Flow

52Neutral

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 SentimentPositive

Last Price30.79

Price Trends

50DMA29.52Positive

100DMA30.38Positive

200DMA29.88Positive

Market Momentum

MACD-0.22Negative

RSI61.21Neutral

STOCH54.89Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPLIL, the sentiment is Positive. The current price of 30.79 is above the 20-day moving average (MA) of 27.97, above the 50-day MA of 29.52, and above the 200-day MA of 29.88, indicating a bullish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 61.21 is Neutral, neither overbought nor oversold. The STOCH value of 54.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 13.94B	12.95	―	1.17%	6.24%	15.54%
IN:PAGEIND	67Neutral	INR 393.10B	52.76	―	1.69%	7.57%	-1.16%
IN:SPLIL	60Neutral	INR 832.30M	9.85	―	―	-36.35%	1.94%
IN:RUPA	56Neutral	INR 9.58B	13.12	―	2.41%	5.33%	-4.01%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:LOVABLE	39Underperform	INR 1.02B	32.16	―	―	-10.49%	17.66%
IN:LUXIND	39Underperform	INR 34.98B	34.33	―	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	30.79	-9.96	-24.44%
IN:DOLLAR	Dollar Industries Ltd.	269.90	-68.96	-20.35%
IN:LOVABLE	Lovable Lingerie Limited	70.09	-21.34	-23.34%
IN:LUXIND	Lux Industries Ltd.	1159.55	-79.02	-6.38%
IN:PAGEIND	Page Industries Limited	35495.00	-3598.42	-9.20%
IN:RUPA	Rupa & Co. Ltd.	125.70	-62.64	-33.26%

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