Textile Stock Jumps 4% After Announcing ₹600 Cr Capex Plan With ₹1,000 Cr Revenue Potential

Synopsis: Lux Industries jumps 4% upon approving a ₹600 crore expansion of its Dankuni facility in West Bengal, including ₹450 crore in fresh investment. The project will add 12 lakh sq. ft., making it one of Asia’s largest garment units. It is expected to generate ₹900–1,000 crore annual revenue and create about 9,000 jobs.

The shares of the Small-Cap company, which specialises in the manufacturing, marketing, and distribution of branded innerwear, casualwear, and hosiery products for men, women, and children, are in focus after announcing a Rs. 600 crore capex plan and targeting Rs. 1,000 crore in annual revenue potential

With a market capitalization of Rs. 3,829.93 crores in the day’s trade, the shares of Lux Industries Ltd jumped upto 3.8 percent, making a high of Rs. 1,292.10 per share compared to its previous closing price of Rs. 1,244.20 per share.

What Happened

Lux Industries Ltd, engaged in the manufacturing, marketing, and distribution of branded innerwear, casualwear, and hosiery products for men, women, and children, has approved a significant capacity expansion project at its Dankuni facility in West Bengal (Vertical A).

The company has sanctioned a total project cost of around Rs. 600 crore, which includes previously acquired land and fresh capital expenditure of approximately Rs. 450 crore. The expansion will add about 12 lakh sq. ft. of manufacturing and allied infrastructure, taking the total facility size to nearly 20 lakh sq. ft., with an estimated payback period of around 5 years.

Once completed and operating at optimal capacity, the expanded facility is expected to become one of Asia’s largest garment manufacturing units. It is projected to generate additional annual revenue of about Rs. 900–1,000 crore and create approximately 3,000 direct and 6,000 indirect jobs in West Bengal. 

Financials & Others

The company’s revenue rose by 7.58 percent from Rs. 819 crores in Q4FY2025 to Rs. 891 crores in Q4FY2026. Net profit rose from Rs. 48 crores to Rs. 40 crores during the same period.

The company shows a modest return profile with a ROCE of 7.84% and ROE of 5.90%, indicating relatively low efficiency in generating profits from its capital and shareholder equity. However, the debt-to-equity ratio of 0.32 suggests a conservative capital structure with low financial leverage, meaning the company is not heavily dependent on borrowed funds.

Lux Industries Limited is one of India’s leading innerwear and hosiery manufacturers. The company produces a wide range of innerwear, thermals, and casual wear for men, women, and children under popular brands like Lux Cozi, Lyra, ONN, Lux Venus, and Lux Nitro. It is a major player in the mid-market segment, with a strong distribution network across India and exports to several countries, supported by large-scale manufacturing and a focus on branding, innovation, and retail expansion.

It is a leading Indian innerwear company, ranking No. 1 in volume terms, with a consolidated revenue of Rs. 2,929 crores in FY’26. It holds a strong market position with about 15% share in the organized men’s innerwear segment and an impressive 95% fill rate compared to the industry average of 80%, reflecting strong demand fulfilment and operational efficiency.

The company operates at a large scale with a manufacturing capacity of over 34 crore garment pieces across 9 advanced plants, supported by a network of 2 lakh+ retailers and exports to over 46 countries. It has 4,500+ employees and a wide product portfolio of 5,000+ SKUs (over 13,000 when including colour and size variations), covering innerwear, outerwear, rainwear, and athleisure categories.

It has a strong geographical sales presence across many countries, with 25 new countries added in the last 5 years and a target of expanding to 60 countries by 2030. Currently, its business is largely domestic (92%) with exports contributing 8%, reflecting a growing but still emerging international footprint.

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