Textile stock jumps 7% after signing MoU with Decathlon Group

Synopsis: The shares gained massively after its announcement of signing MoU with Indeca Sporting, as the company expects setting up a commercial facility with a capacity of 26,750 MTPA.

The shares of this company engaged in the manufacturing and trading of synthetic yarn and textiles such as Polyester Chips, Narrow Fabrics etc are in focus after signing MoU with a subsidiary of Decathlon Group.

With the market capitalization of Rs. 2,345.33 crore, Filatex India Ltd’s share on Friday made a day high of Rs. 55.62 per share, up around 6.8 percent from its previous day’s close price of Rs. 52.07 per share. It has delivered a return of  167.48 percent over a period of five years.

Details of the Memorandum of Understanding

Texfil, a Filatex India subsidiary, signed an MoU with Indeca Sporting Goods subsidiary of Decathlon Group on December 11, 2025. They’re teaming up to use high-quality recycled polyester from chemical recycling for sports apparel. Texfil’s pilot plant runs now at  800 kg/day, with a big 26,750 MTPA facility coming in Sept 2026, based on an  in-house chemical recycling process based on glycolysis that preserves the quality of polyester

Decathlon will test Ecosis chips and yarn via Indian partners, plus recycle their pre & post-consumer textile waste back to Texfil. This pushes circular economy principles, cutting virgin material use and keeping polyester in play. Both sides are enthusiastic about sustainable sports gear innovation.

This MoU records the shared intent to evaluate and scale the use of Ecosis recycled polyester within Decathlon’s products, with the common objective of keeping textile waste in circulation and reducing the need for virgin resources. 

About the company

Filatex India Limited is among the country’s leading manufacturers of Polyester Filament Yarn focused on capitalizing synergies created through its integrated business model. The company has achieved an Annual manufacturing capacity of 4,17,240 MT for FY 25-26 with 2 state-of-the-art manufacturing units.

Company’s product mix break-up as of FY 2024-25 is, Drawn Textured Yarns (DTY) 40.09%, Fully Drawn Yarns (FDY) 31.30%, Partially Oriented Yarns (POY) 27.62% and the rest by segments like Polyester Chips, Polypropylene Yarns & Narrow Woven Fibres.

This MoU will boost the company’s financials, and revenue grew by 3 percent to Rs.1,076 crore in Q2 FY26 from Rs. 1,049 crore in Q2 FY25. EBDIT grew by 99 percent to Rs.82.6 crore in Q2 FY26 from Rs.41.5 crore in Q2 FY25. Accompanied by growth in Net profit by 253 percent YoY to Rs.47.6 crore in Q2 FY26 

Written by Gourav Pratap Singh

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