Aastha Spintex Board To Consider 1:1 Bonus And ₹10 Dividend, Company Plans Expansion Into Value-Added Fabrics

Surendranagar: Aastha Spintex Limited is planning its next phase of growth through shareholder rewards, higher manufacturing capacity and expansion into value-added textile products.

The company’s board will meet on July 23, 2026, to consider a bonus share issue and final dividend. It will also examine plans to expand into grey fabric and other value-added fabric products under the company’s own brand.

Bonus Proposal

The board will consider issuing bonus equity shares in a ratio of up to 1:1. This means eligible shareholders could receive one bonus share for every equity share held.

It will also consider a final dividend of up to 100 percent, equivalent to Rs 10 per equity share with a face value of Rs 10.

Both proposals are subject to board approval. The record date and other details will be announced later if the proposals are cleared.

Fabric Expansion

Aastha Spintex currently manufactures cotton yarn. It now plans to move further along the textile value chain by entering the grey fabric and value-added fabric segments.

The proposed expansion is expected to help the company use its larger yarn-manufacturing base and explore new growth opportunities. The products are planned to be sold under its proprietary brand.

Managing Director Divyang Jashwant Patel said the company’s growth had been guided by its long-term aim of building a stronger and more integrated textile business.

Capacity Increase

The proposed move follows Aastha Spintex’s acquisition of Falcon Yarns Private Limited. The transaction will more than double the company’s annual spinning capacity from 7,700 metric tonnes to 17,457 metric tonnes.

Its spindle capacity will also increase from 25,920 to 61,824. The larger capacity is expected to support its forward-integration plans.

Financial Growth

Aastha Spintex’s revenue increased from Rs 240 crore in FY23 to Rs 352 crore in FY25, representing a compound annual growth rate of 21.2 percent.

Net profit rose from Rs 1.1 crore to Rs 23 crore during the same period. Its operating profit margin improved from 5.87 percent to 14.16 percent, while the EBITDA margin increased from 6.05 percent to 14.45 percent.

The company said its expanded manufacturing base and proposed entry into branded fabric products would help strengthen its textile business and support sustainable long-term value creation.