Soma Textiles & Industries has fully transitioned from textiles to highway construction. For the fiscal year ending March 2026, revenue soared 752% to ₹80.88 crore, though net profit decreased due to prior year exceptional items. New promoters took control in July 2025.
Soma Textiles Completes Business Pivot to Infrastructure
Revenue from Operations (FY 2025-26): ₹80.88 crore
Net Profit (FY 2025-26): ₹9.90 crore
Reader Takeaway: Revenue jumps with new infra focus; monitor construction risks and past loans.
What just happened
Soma Textiles & Industries Ltd. has officially completed its business model transformation, exiting textile manufacturing to focus solely on infrastructure, specifically highway and road construction. For the fiscal year ending March 31, 2026 (FY 2025-26), the company reported revenue from operations of ₹80.88 crore, a substantial 752.51% increase from ₹9.49 crore in the previous fiscal year (FY 2024-25). The net profit for FY 2025-26 stood at ₹9.90 crore, a decrease from ₹69.31 crore in FY 2024-25, which the company attributes to large exceptional items in the prior year.
Why this matters
This marks a fundamental shift for Soma Textiles, which is now entirely an infrastructure play. The dramatic revenue jump validates the new business direction, but investors need to assess its sustainability and profitability in the capital-intensive construction sector. The company also confirmed it will remain listed on the BSE and NSE after withdrawing its delisting proposal.
The backstory
A significant change in control occurred on July 9, 2025, when new promoters acquired 74.98% of the company's equity. This paved the way for the strategic shift away from textiles towards infrastructure development. The delisting withdrawal signifies continued public market participation under the new management.
What changes now
The company's operations are now geared towards highway and road projects. The financial reporting reflects this, with highway construction being the sole reportable segment for the quarter ending December 2025. The board has recommended a 5% final dividend for FY 2025-26.
Risks to watch
The infrastructure sector carries inherent risks, including volatility in raw material prices (steel, cement, bitumen), potential delays in regulatory approvals, and project execution challenges. The capital-intensive nature of construction also necessitates careful working capital management. Additionally, auditors have highlighted an 'Emphasis of Matter' concerning the recoverability of a loan to an associate company, 'Soma Textiles FZC' in the UAE.
Peer comparison
Soma Textiles now operates in the infrastructure and construction sector, facing competition from established players. Key metrics to watch will be order book size, project execution timelines, and profitability margins, which are critical in this industry.
Context metrics (time-bound)
- Revenue from operations jumped 752.51% from ₹9.49 crore (FY 2024-25) to ₹80.88 crore (FY 2025-26).
- Net profit decreased from ₹69.31 crore (FY 2024-25) to ₹9.90 crore (FY 2025-26).
- A Share Purchase Agreement on July 09, 2025, led to a change in control (74.98% equity transfer).
What to track next
Investors should monitor the company's order book, project execution efficiency, and management's ability to navigate the cyclical nature and capital demands of the infrastructure sector. The status of the associate company loan will also be a key point.