Purpose This study aims to evaluate the financial performance of the textile industry in Haryana located in the northern part of India. Design/methodology/approach Input-oriented Cooper, Charnes and Rhodes (CCR) and Banker, Charnes and Cooper (BCC) techniques of data envelopment analysis, as well as the return to scale (RTS) technique, were used to conduct the analysis. Findings The findings show that textile units in Haryana have hugely underperformed financially with a consolidated technical efficiency score of only 0.35. Both private and public limited textile companies with respective scores of 0.46 and 0.24 are technically efficient. Public limited textile companies are more efficient than private limited companies. Private limited textile companies need to increase their input scale because they are operating at an increasing return to scale while public limited textile companies have to lower their input scale because most companies are operating at a decreasing return to scale to enhance their efficiency. Originality/value The study can assist in decision-making to all key stakeholders (Shareholders, management, government, tax authorities, debtors and creditors, among others) by identifying efficient and inefficient companies. Appropriate policies can be framed based on that knowledge.

Purpose Considering the role of the textile industry in the generation of employment and export in the Indian economy, it is important to comprehend the efficiency level in the operations of the textile units located in different states in India. In this light, the purpose of this paper is to examine the operational efficiency of textile manufacturing units in Haryana, a northern state of India. Design/methodology/approach The study applies data envelopment analysis (DEA) approach consisting of input-oriented CCR and BCC techniques along with the return to scale technique for the analysis of five years of data from 2015–2016 to 2019–2020. Findings The results reveal that Haryana’s textile units have significantly underperformed operationally, with an average technical efficiency score of just 0.25 for five years, from 2015–2016 to 2019–2020. The yearly ratings of the overall technical efficiency of the selected textile companies include 0.20, 0.18, 0.18, 0.40 and 0.28; PTE scores are 0.43, 0.43, 0.55, 0.60, 0.62 and scale efficiency scores 0.54, 0.44, 0.29, 0.71, 0.38, respectively, from 2015–2016 to 2019–2020. On the other hand, average of 5.8 units are functioning at the constant return to scale, 10.2 units are at increasing return to scale and average of 45 units are functioning at decreasing return to scale (DRS). It is found that most of the companies are functioning at a DRS; to boost efficiency, these companies must reduce their input size since they are running at a DRS. Practical implications The results of the current paper provide key insight into the inefficiency level of the textile manufacturing industry in the context of northern India. Industry professionals can take corrective measures based on these findings. Moreover, for investors and portfolio managers, knowing which companies are efficient and which are not will help them make better decisions. The study helps policymakers to frame appropriate policy guidelines to make the textile units in the state more efficient and competitive. Originality/value To the best of the authors’ knowledge, no study has been done so far on the operational performance of the textile industry in Haryana based on the DEA technique. So, it will contribute to the extant literature on the performance of the textile industry.