Textile Stocks Jump up to 12% as Government Eases PLI Scheme Norms for MMF and Technical Textiles

Mumbai, October 10, 2025: Shares of textile companies surged up to 12% in early trade on Friday after the Ministry of Textiles announced significant amendments to the Production Linked Incentive (PLI) Scheme for MMF (man-made fiber) and technical textile segments. This change is expected to drive a higher degree of investment in the markets.

Market Reaction

Sangam (India) Ltd (NSE: SANGAMIND) led the rally, soaring 11.74% to ₹447.80 at 09:35 a.m. IST. The stock opened at ₹401.55 and hit a high of ₹465.45, with a traded volume of 2.59 lakh shares and a traded value of ₹11.63 crore. However, by 11:30 AM, the stock lost some of its steam and consolidated a bit, trading at ₹430.60 (up by 7.45% from the previous day’s closing price. Akshar Spintex Ltd (BSE: 540932) followed with a robust 7.35% gain to ₹0.73, compared with the last close of ₹0.68. The scrip saw active trading with a total market capitalization of ₹57.49 crore and a VWAP of ₹0.72. Unlike Sangam, Akshar Spintex Ltd continued its surge, with this penny stock trading at ₹0.74 per share (8.82% higher than the previous day’s closing).

There was no critical movement in the other large-cap stocks in the textile sector, as the average movement was between 0.50% to 1.25% from the previous day’s closing.

Sangam (India) Ltd, listed since July 1996, is a leading producer of polyester viscose yarn, denim, and suiting fabrics with a market capitalization of ₹2,256 crore and an adjusted P/E ratio of 76.91. Akshar Spintex Ltd, listed since May 2022, manufactures grey fabrics and cotton yarn under the “Other Textile Products” category, with a free-float market cap of ₹58.05 crore.

Policy Boost for the Sector

The Ministry of Textiles has revised the PLI Scheme for MMF Apparel, MMF Fabrics, and Technical Textile products, introducing reforms to simplify participation and drive fresh investments across the textile sector.

Key Highlights of the Amendments

Effective 1 August 2025, the government relaxed norms under the MMF and Technical Textiles Incentive Scheme. The minimum investment requirements were lowered to ₹150 crore and ₹50 crore, while the turnover threshold was reduced to 10%. Existing companies are now eligible to apply, with 17 new HSN codes added and the application deadline extended to 31 December 2025. These measures aim to ease entry barriers and promote employment in the textile manufacturing sector.

Industry Implications

The lower investment thresholds and broader eligibility are expected to bring mid-tier manufacturers into the PLI ecosystem, supporting faster execution and higher production capacity. Analysts see this as a structural tailwind for India’s textile exports and domestic fabric demand.

REF: https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2176795

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