Raj Rayon Industries Limited submitted an investor presentation for the quarter ended September 30, 2026 in compliance with Regulation 30 of SEBI Listing Regulations.

Financial Performance - Q2 FY27

  • Revenue from operations increased 43.0% YoY to Rs 456.5 crore from Rs 319.3 crore in Q2 FY26
  • Gross Profit rose 45.8% YoY to Rs 88.9 crore with margin expanding to 19.5% from 19.1%
  • EBITDA more than doubled to Rs 32.8 crore from Rs 15.6 crore, with margin expanding 230 bps to 7.2%
  • PAT nearly tripled to Rs 23.0 crore from Rs 8.0 crore, with PAT margin improving to 5.0% from 2.5%
  • Diluted EPS stood at Rs 0.29 compared to Rs 0.10 in Q2 FY26

Operational Metrics - Q2 FY27

  • Production increased 12.5% YoY to 47,093 MT
  • Sales volumes grew 6.5% YoY to 35,979 MT
  • DTY volumes grew 11.5% YoY
  • Capacity utilization reached 106% following debottlenecking
  • Blended realizations improved to approximately Rs 125/kg from Rs 94/kg a year ago
  • Gross spread improved to about Rs 25/kg from Rs 18/kg

H1 FY27 Performance

  • Revenue from operations increased 14.1% YoY to Rs 660.9 crore from Rs 579.5 crore
  • EBITDA grew 62.0% YoY to Rs 50.1 crore with margin expanding to 7.6% from 5.3%
  • PAT more than doubled to Rs 29.9 crore from Rs 14.1 crore
  • H1 capacity utilization was impacted by 46-day plant shutdown in Q1 for debottlenecking

Balance Sheet Position (as of September 2026)

  • Property, plant and equipment: Rs 337.0 crore
  • Capital work-in-progress: Rs 4.2 crore
  • Inventories: Rs 113.4 crore
  • Investments: Rs 100.2 crore (increased from Rs 25.3 crore in March 2026)
  • Trade receivables: Rs 48.4 crore
  • Cash and cash equivalents: Rs 1.6 crore
  • Total equity: Rs 186.3 crore (including equity share capital of Rs 55.6 crore and instruments entirely equity in nature of Rs 25.0 crore)
  • Borrowings (non-current): Rs 137.5 crore
  • Borrowings (current): Rs 71.9 crore
  • Trade payables: Rs 273.6 crore
  • Net debt reduced by approximately Rs 77 crore during H1 FY27

Growth Strategy and Expansion

  • Company announced Rs 650 crore Phase II expansion at existing Silvassa facility (brownfield)
  • Expansion focuses on recycled yarns and technical textiles
  • Target: ~80% of revenue from value-added, specialty & sustainable products at peak utilization
  • 10 TPD fabric line commissioning expected in Q3 FY27 with ramp-up in Q4 FY27
  • Plans to scale fabrics to 25 TPD next year and 100 TPD over next 2-3 years

Historical Financial Performance

  • FY26 Revenue: Rs 1,179.7 crore (vs Rs 849.4 crore in FY25)
  • FY26 PAT: Rs 34.0 crore (vs Rs 13.8 crore in FY25)
  • Three-year revenue growth from Rs 137.2 crore in FY23 to Rs 1,179.7 crore in FY26

Corporate Background

  • SVG Group acquired company in 2021 through NCLT resolution
  • Total SVG capital infusion: Rs 124.9 crore (Rs 45.0 crore unsecured loan, Rs 25.0 crore CCPS, Rs 54.9 crore equity)
  • Legacy creditor settlement: Rs 80 crore paid to settle all legacy creditors
  • Rs 450 crore of unabsorbed tax losses carried forward
  • Current banking facilities: Rs 268.5 crore term loans (BoB Rs 185 crore, HDFC Rs 83.5 crore) and Rs 270 crore working capital limits

Manufacturing Capabilities

  • 25-acre manufacturing plant in Silvassa
  • Vertically integrated polyester producer from fiber to finished garments
  • Products: Polyester Chips, POY, DTY, FDY (being added), specialty value-added products
  • Current capacity: 400 TPD post-debottlenecking (increased from 350 TPD)
  • 3,500+ customer base and 15+ export markets

Management Commentary

Sandiip Satyanarayan Agarwwal, Whole-Time Director & CFO, stated that Q2 was a strong quarter with benefits from debottlenecking showing immediately. He expects H2 volumes to increase compared to H1 and profitability to depend on market conditions. The company is deepening forward integration into higher-value products with fabric line commissioning.