SYNOPSIS:
Nahar Industrial Enterprises will close its decades-old Arham Spinning Mills by March 2026, citing operational non-viability driven by ageing machinery, rising maintenance costs, and prolonged adverse conditions in the textile and spinning sector.
During Wednesday’s trading session, shares of a company engaged in the business of textiles and sugar surged nearly 8 percent on the stock exchanges, after the company’s Board approved the closure of its spinning unit in Bhiwadi, Rajasthan.
At 10:50 a.m., shares of Nahar Industrial Enterprises Limited were trading in the green at Rs. 115.9 on BSE, up by around 3.5 percent, as against its previous closing price of Rs. 112, with a market cap of Rs. 501 crores. The stock has delivered negative returns of around 12 percent in one year, but has gained by more than 1 percent in the last one month.
What’s the News
The Board of Nahar Industrial Enterprises Ltd., as per recent regulatory filings, has approved the closure of its spinning unit – Arham Spinning Mills in Bhiwadi, Rajasthan – citing operational non-viability. The facility, which has been in operation for nearly three decades, will be phased out, with usable machinery relocated to other company facilities and obsolete machinery slated for disposal.
Arham Spinning Mills contributed Rs. 239.2 crore in revenue during FY25, accounting for 15.63 percent of the company’s total turnover. However, the unit also posted a loss of Rs. 14.16 crore for the same period, significantly weighing on overall profitability.
The shutdown is expected to be completed by the end of 31st March 2026. The company attributed the decision to the unit’s deteriorating operational viability, driven by ageing machinery, escalating maintenance expenses, loss of competitive positioning, and prolonged unfavourable market conditions in the textile and spinning sector.
Financials & More
Nahar Industrial Enterprises reported a decline in consolidated revenue from operations, experiencing a year-on-year decrease of more than 4 percent, from Rs. 356 crores in Q2 FY25 to Rs. 340 crores in Q2 FY26. Despite the topline softness, the company swung to profitability, reversing a Rs. 3-crore loss to a Rs. 16-crore net profit for the quarter.
For Q2 FY25, Nahar Industrial Enterprises reported a total segment revenue of Rs. 339.2 crore. The textile division remained the dominant contributor, generating Rs. 277.3 crore, which accounts for about 81.76 percent of the total revenue. The sugar segment delivered Rs. 61.4 crore, contributing around 18 percent to the overall topline. Meanwhile, the ‘others’ segment was marginal, adding Rs. 0.44 crore, representing around 0.13 percent of total revenue.
Nahar Industrial Enterprises Limited is engaged in the business of offering a diversified product portfolio that spans across key textile categories, including textiles, yarns, woven fabrics, and knitwear & garments. In addition to its core textile operations, the group also produces sugar and various other related products, reflecting its presence across multiple integrated manufacturing segments.
The company is a vertically-integrated textile manufacturer, with operations ranging from spinning, weaving & processing and also has a sugar unit with 2500 TCD per day.
Written by Shivani Singh
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