• The document is a transcript of the Q1 FY27 Earnings Conference Call held on Monday, 3rd August 2026.
  • The call was hosted to discuss the company's financial and operational performance for the quarter ended June 30, 2026 (Q1 FY27).
  • Management participants included Mr. Ravindra Toshniwal (Vice Chairman), Mr. Shaleen Toshniwal (Managing Director), and Ms. Kavita Gandhi (Chief Financial Officer). SGA, the company's Investor Relations Advisors, were also present.
  • The transcript was uploaded to the stock exchanges and is available on the company website at https://www.banswarasyntex.com/transcript-of-earning-conference-call/.
  • The company stated that the India-U.K. Free Trade Agreement, which came into effect on 15th July 2026, is a significant milestone expected to improve the competitiveness of Indian textile exports. The elimination of import duties is anticipated to benefit the company in future quarters.

Financial Highlights & Guidance

  • Q1 FY27 Financial Performance: Total income was INR322.4 crores, up 4.1% Year-on-Year (YoY). EBITDA stood at INR29.5 crores. Profit Before Depreciation and Tax was INR19.6 crores. Profit After Tax (PAT) was INR4.4 crores, a significant improvement from a loss of INR1.4 crores in Q1 FY26.
  • Divisional Performance:
  • Yarn Division: Revenue was INR96 crores (vs. INR110 crores YoY). Sales volume was 36 lakh kgs. Capacity utilization was 70%, impacted by seasonal labor shortages.
  • Fabric Division: Revenue was INR147 crores, up 25% YoY. Sales volume was 59 lakh meters, up 18% YoY. Capacity utilization improved to 80%.
  • Garment Division: Revenue was INR69 crores (vs. INR75 crores YoY). Sales volume was 8 lakh pieces. Capacity utilization was 69%. Performance was impacted by temporary export logistic constraints from the West Asia crisis, deferring some dispatches to Q2.
  • Full-Year Guidance: Management maintained its revenue guidance for FY27 at INR1,450-1,500 crores. The EBITDA margin target for the full year is 12% (Q1 was 9%, with recovery expected in subsequent quarters).
  • Segmental Margin Guidance: Fabric business is targeted at 12-14% EBITDA; Garment and Yarn businesses are targeted at 8-10% EBITDA each.

Operational & Strategic Updates

  • Order Book: The Garment division order book is "fully booked through to November and even December." The Fabric division order book is strong, providing visibility "up to November end."
  • Jacket Business: The company expects to produce 800,000 to 900,000 jackets in FY27, averaging 70,000-75,000 per month from Q2 onwards (Q1 volume was 135,000).
  • Exports: Overall exports contribute 48% to total revenue. For the Garment division, exports contribute 60% and domestic 40%. For the Fabric division, the split is 50% export and 50% domestic.
  • Surat Facility: The company reported progress on reactivating its Surat facility. Approvals from GIDC have been received. The process to obtain a no-due certificate from customs and debonding from SEZ is underway, targeting operational readiness by April 2027 (FY28). An investment of ~INR50 crores is envisaged to modernize the plant, potentially adding INR200 crores in revenue.
  • Capex Plans: An investment of INR140 crores is planned for FY27, focused on expansion in the Fabric and Garment divisions and common infrastructure. For FY28, a 20-25% expansion in Garment and Fabric capacity is anticipated.
  • Customer Additions: The company has added new international brands like C&A and NEXT and deepened engagements with existing customers like Mango, Celio, and Walmart.

Additional Notes Section

  • The document is a standalone transcript; no attachments (e.g., investor presentation) were mentioned in the provided text.
  • The transcript contained extensive financial data and operational details disclosed during the earnings call.
  • The company included standard legal language: "E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recording uploaded on the stock exchange on 3rd August 2026 will prevail."