Sumeet Industries has created a buzz in the polyester sector with a series of bold moves — from announcing a stock split to entering the solar power business. And if you think it’s all talk, just look at its performance over the last year — a staggering 2,557% return, turning heads across the market.
Stock Split to Boost Liquidity
The company’s board has approved a 5:1 stock split. This means every ₹10 share will now be divided into five shares of ₹2 each. Such a move typically attracts retail investors by increasing share accessibility and liquidity.
For example, if you currently hold 100 shares (face value ₹10 each), you’ll now have 500 shares (face value ₹2 each). The total value remains the same, but liquidity and participation in the stock market could see a notable rise.
Stock Hits Upper Circuit
After the announcement, Sumeet Industries’ stock jumped from ₹125.72 to ₹128.23, hitting its upper circuit for the day.
- Market Cap: ₹1,349.81 crore
- 1-Year Return: +2,557%
Such explosive growth shows the market’s strong reaction and the company’s growing investor confidence.
Entry into Green Energy
Sumeet Industries has now stepped into the renewable energy space, expanding its business portfolio:
- Acquired 27% stake in Hi-Urja Techno LLP
- Signed an agreement to purchase 14 MW of solar power
- GETO approved a new 20 MW solar plant
- Total solar capacity now stands at 34 MW
This strategic expansion supports sustainability while also reducing electricity costs, helping the company cut operational expenses.
Higher Production, Lower Costs
The company is increasing its production capacity from 120 TPD to 160 TPD, marking a 33% growth in output.
- New production line investment: ₹22.5 crore
- Replacement with efficient compressors: ₹10.4 crore
- Annual power savings: ₹5 crore
This shows Sumeet’s strong focus on efficiency improvement and cost reduction simultaneously.
Financial Performance: Profit Declines
| Data Point | Q1 FY26 | Q4 FY25 | Q1 FY25 |
|---|---|---|---|
| Revenue | ₹248.47 Cr | ₹243.02 Cr | ₹266.69 Cr |
| Profit/Loss | ₹7.98 Cr | ₹67.68 Cr | -₹8.47 Cr |
| Growth (QoQ) | +2.2% Revenue, -88% Profit | ||
| D/E Ratio | 0.38 | ||
| P/E Ratio | 125x |
Although quarterly profit fell sharply on a QoQ basis, the company has shown a turnaround from loss to profit YoY, a strong signal of recovery and operational improvement.
From Polyester to Solar
Sumeet Industries is no longer just a polyester yarn and chips manufacturer — it’s evolving into a diversified player with a presence in renewable energy, energy efficiency, and strategic expansion.
The stock split is expected to boost retail investor interest, while the company’s focus on clean energy and cost efficiency indicates long-term stability and sustainability.
Sumeet Industries is fast emerging as one of those rare textile-to-energy transition stories — showing how traditional sectors can reinvent themselves for the future.
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