Aastha Spintex Plans 1:1 Bonus, ₹10 Dividend, Expansion

Aastha Spintex Limited's board will meet on July 23, 2026, to consider issuing bonus equity shares in a ratio of up to 1:1 and a final dividend of up to 100 percent, equivalent to ₹10 per equity share.

The company is planning its next phase of growth through shareholder rewards, higher manufacturing capacity, and expansion into value-added textile products.

Aastha Spintex currently manufactures cotton yarn and 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.

The proposed move follows Aastha Spintex's acquisition of Falcon Yarns Private Limited, which 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.

Aastha Spintex's revenue increased from ₹240 crore in FY23 to ₹352 crore in FY25, representing a compound annual growth rate of 21.2 percent. Net profit rose from ₹1.1 crore to ₹23 crore during the same period.

The company's 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 expanded manufacturing base and proposed entry into branded fabric products are expected to help strengthen Aastha Spintex's textile business and support sustainable long-term value creation.

This move is significant for the textile industry, as it indicates a shift towards value-added products and expansion of manufacturing capacity.

The company's plans for expansion and growth are expected to have a positive impact on its shareholders and the textile industry as a whole.

In conclusion, Aastha Spintex's plans for bonus shares, dividend, and expansion into value-added fabrics are a significant development for the company and the textile industry.

The company's focus on building a stronger and more integrated textile business is expected to drive growth and create long-term value for its shareholders.