Big factories. Big capacity. Big legacy. But....

Alok has the looms. Alok has the plants. Alok has the customers. But shareholders need earnings — not just assets. The company is one of India's large vertically integrated textile manufacturers, covering everything from spinning and weaving to processing, fabrics, garments and home textiles, across cotton and polyester. Sounds powerful. But the financial picture tells another story. REVENUE WITHOUT RETURNS FY26 consolidated revenue stood at roughly ₹3,715 crore, almost flat versus FY25. Yet the company reported a staggering ₹744 crore net loss. And this wasn't a one-quarter problem. FY25 loss: ₹816 crore. FY26 loss: ₹744 crore. The bleeding has slowed. But it hasn't stopped. That's the core bearish argument. THE DEBT SHADOW Alok emerged from insolvency through an NCLT-approved resolution plan, but the balance sheet still carries a massive legacy burden. Assigned debt of approximately ₹17,384 crore is being accounted for at cost under the resolution plan, with no interest for the first eight years from the September 2020 closing date. Total consolidated borrowings at FY26 were still around ₹26,105 crore. So the equation remains uncomfortable: Large debt → High finance costs → Weak profitability → Limited cash generation FY26 finance costs were approximately ₹615 crore, while consolidated EBITDA was only around ₹48 crore. That's the problem. The business is working. But the balance sheet is working against it. Textiles are also cyclical. Cotton prices move. Polyester prices move. Export demand moves. Margins move. When the cycle turns favourable, textile companies can look spectacular. But when demand weakens: Capacity stays. Costs stay. Debt stays. Margins disappear. Alok's turnaround therefore requires more than better sales. It needs sustained operating profitability, debt reduction and consistent free cash flow.