Understanding Shariah Compliance in IPOs and Stocks:
Investing wisely is essential for both financial growth and ethical alignment. For those interested in making investments that comply with Islamic law, understanding the Shariah status of Initial Public Offerings (IPOs) and stocks is crucial. This article aims to provide insights into the Shariah compliance of Shree Ram Twistex Ltd, a modern choice for ensuring that your investment choices are not only profitable but also ethical.
Table of Contents
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Analyzing The Company
Company Name: Shree Ram Twistex Ltd
Listing At: NSE & BSE (Mainboard)
Overview
Shree Ram Twistex Limited is a distinguished premium textile manufacturer established in 2013, specializing in high-quality spinning operations. Based in Gujarat, India, the company has earned recognition as a trusted partner in the global textile industry through its unwavering commitment to excellence, durability, and superior craftsmanship.
Core Specialization and Product Excellence
The company specializes in manufacturing 100% cotton yarn, with particular emphasis on premium cotton ring-spun grey single yarn. This specialization reflects Shree Ram Twistex’s dedication to producing materials that consistently exceed industry expectations. Their yarn products are engineered to deliver exceptional performance across diverse textile applications, establishing the company as a reliable source for businesses seeking superior solutions.
Through years of operational refinement, Shree Ram Twistex has developed sophisticated manufacturing processes ensuring consistent quality output. Their commitment to precision manufacturing has enabled them to build lasting relationships with customers and suppliers globally.
Strategic Vision and Mission
Vision: To be a globally recognized leader in the textile industry by delivering world-class quality yarn at competitive prices.
Mission: To develop, manufacture, and market premium yarn products that meet the evolving needs of domestic and international textile markets.
These strategic directives underscore the company’s ambitious growth trajectory while maintaining focus on quality leadership and market responsiveness.
Core Values and Principles
Shree Ram Twistex operates on foundational values of excellence, innovation, and sustainability, ensuring long-term growth for customers, employees, and stakeholders. At the organization’s heart lies steadfast commitment to integrity and continuous improvement.
The company’s guiding principles include:
- Building long-term partnerships with customers and suppliers through trust
- Offering superior quality products at competitive market prices
- Surpassing industry standards with exceptional customer and technical support
These principles create a framework for sustainable business practices benefiting all stakeholders while maintaining competitive positioning.
Revolutionary Sustainability Initiative
Sustainability represents a cornerstone of Shree Ram Twistex’s operational philosophy. The company currently harnesses 1.2 MW of solar power through existing rooftop solar installations, demonstrating practical environmental commitment.
More significantly, the company is implementing an ambitious expansion by adding an additional 6.2 MW rooftop solar plant. This substantial infrastructure investment will enable Shree Ram Twistex to achieve 100% renewable energy operations, dramatically reducing carbon footprint while ensuring energy efficiency throughout manufacturing processes.
By investing in clean energy solutions, the company aligns with global sustainability goals while reinforcing dedication to eco-friendly textile production. This forward-thinking approach positions Shree Ram Twistex as an industry leader in sustainable manufacturing, appealing to environmentally conscious customers and stakeholders.
Market Position and Competitive Advantages
Since 2013, Shree Ram Twistex has established itself among the best spinning operation manufacturers in the market, earning recognition for consistent quality delivery and innovation.
Key competitive strengths include:
- Advanced spinning technology ensuring consistent yarn quality
- Comprehensive quality control systems maintaining product standards
- Strategic focus on customer relationships and technical support
- Commitment to competitive pricing without compromising quality
- Environmental leadership through renewable energy adoption
Shariah Status
The IPO is Shariah Compliant, please see the below image.
IPO Timeline (Tentative Schedule)
| IPO Open Date | Feb 23, 2026 |
| IPO Close Date | Feb 25, 2026 |
| Tentative Allotment | Feb 26, 2026 |
| Initiation of Refunds | Feb 27, 2026 |
| Credit of Shares to Demat | Feb 27, 2026 |
| Tentative Listing Date | Mar 02, 2026 |
Financials
Shree Ram Twistex Ltd. Financial Analysis (₹ Crore, Restated)
Shree Ram Twistex demonstrates robust financial growth across key metrics. Total Income increased from ₹213.58 Crore (FY23) to ₹256.32 Crore (FY25), with ₹132.27 Crore recorded in the first half of FY26. Profit After Tax nearly quadrupled from ₹2.05 Crore (FY23) to ₹8.00 Crore (FY25), reflecting improving operational efficiency and margin expansion.
Balance sheet strength is evident: Total Assets surged from ₹135.71 Crore to ₹217.44 Crore, while Net Worth grew from ₹61.11 Crore to ₹80.70 Crore, indicating solid financial stability. EBITDA improved to ₹21.85 Crore (FY25), maintaining healthy margins around 8–9 percent despite textile industry competitiveness.
Total Borrowing stands at ₹60.70 Crore with a moderate gearing ratio of 1.31 times, demonstrating prudent leverage management. Strong cash accruals of ₹13.34 Crore adequately cover debt obligations, supporting adequate liquidity. The company’s steady operational performance, no history of labor disruptions, and capex in renewable energy position it well for sustainable growth.
SEBI Disclaimer
Investing in IPOs involves risks. Please read the offer document carefully before investing. This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.