Financial Analyst Summary: Raj Rayon Industries Limited Q1 FY2026 Results

Company Communication and Regulatory Context

Date of Communication: August 05, 2025

Nature of Communication: Regulatory filing pursuant to Regulation 30 & 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding outcome of Board meeting held on August 05, 2025.

The Board of Directors meeting commenced at 12:00 noon and concluded at 1:40 PM on August 05, 2025. The board inter-alia considered, approved and taken on record:

  • The Un-audited Financial Results of the Company for the first quarter ended June 30, 2025
  • Limited Review Report on the said results received from the Statutory Auditors of the Company
  • Adopted corporate social responsibility policy and authorized Board to implement the same as per requisite regulations

Financial Results Clarification and Audit Qualification

Regulatory Compliance: The company is complying with SEBI Listing Regulations, specifically Regulation 30 (disclosure of events) and Regulation 33 (financial results). The extract of unaudited financial results will be published in one English and one vernacular newspaper as required under the regulations.

Audit Qualification Details: The statutory auditors, Bagaria & Co. LLP (Firm Registration No. 7WW-10001e), issued a qualified review report. The qualification states:

  • Management is in the process to obtain details of three inoperative bank accounts which are continuing in the name of the Company from prior to the Corporate Insolvency Resolution Process
  • The current management was not in charge of the affairs of the Company during that period
  • Auditors are unable to comment on the impact, if any, on the financial statement arising out of the subsequent availability of such pending bank statements
  • This matter was also subject to qualification in the review conclusion on the audited financial statements for the quarter and year ended March 31, 2025

Management Response: The Management has sent letters with Board Resolutions to the in-operative bank accounts for closure and awaits response from these bankers.

Detailed Financial Performance (Amounts in Lakhs, INR)

Quarter Ended June 30, 2025 (Unaudited):

  • Revenue from operations: ₹26,019.21
  • Other income: ₹20.75
  • Total Income: ₹26,039.96

Expenses:

  • Cost of materials consumed: ₹22,341.86
  • Changes in inventories of finished goods: (₹1,923.18) [negative indicating decrease]
  • Employee benefits expense: ₹347.27
  • Finance costs: ₹399.91
  • Depreciation and amortisation expense: ₹410.51
  • Other expenses: ₹3,719.47
  • Total Expenses: ₹25,295.84

Profitability:

  • Profit before exceptional items and tax: ₹744.12
  • Exceptional items: None
  • Profit before tax: ₹744.12
  • Tax expense: (₹136.85) [deferred tax benefit]
  • Profit after tax: ₹607.27

Comprehensive Income:

  • Other Comprehensive Income: ₹3.28
  • Total Comprehensive Income for the period: ₹610.55

Capital Structure:

  • Paid-up Equity Share Capital (Face Value of Re. 1/- each): ₹5,560.82
  • Earnings Per Equity Share (not annualized):
  • Basic: ₹0.11
  • Diluted: ₹0.08

Comparative Performance:

Vs. Previous Quarter (Q4 FY2025 - Unaudited):

  • Revenue increased from ₹20,584.51 lakh to ₹26,019.21 lakh (26% increase)
  • Profit after tax increased from ₹1,344.35 lakh to ₹607.27 lakh (55% decrease)

Vs. Year-Ago Quarter (Q1 FY2025 - Unaudited):

  • Revenue increased from ₹20,222.39 lakh to ₹26,019.21 lakh (29% increase)
  • Profit after tax improved from loss of ₹(347.80) lakh to profit of ₹607.27 lakh

Business Segment: The Company is primarily engaged in a single business segment of Manufacturing & Marketing of Textiles Yarns.

Notes to Financial Results:

  • Figures for corresponding previous quarter/year have been regrouped/reclassified wherever necessary for comparability
  • Figures for quarter ended March 31, 2025 are balancing figures between audited full-year figures and limited reviewed year-to-date figures up to third quarter

Additional Information

Company Details:

  • CIN No.: L17120DN1993PLC000368
  • Contact: Tel: 91-22-40343434, Fax: 91-22-40343400, email: investors@rajrayon.com, website: www.rajrayon.com

Filing Details:

  • Company Code: RAJRILTD (NSE), 530699 (BSE)
  • Financial year: April 01, 2025 to March 31, 2026
  • Reporting currency: INR
  • Rounding level: Lakhs