EBITDA margin: 8.7%, expanding by 66 basis points quarter-on-quarter and 191 basis points year-on-year
Finance costs: Remained stable at ₹31.5 crore
Profit before tax: ₹35 crores, increased from ₹24 crores in Q1 FY27
Profit after tax: ₹25 crores, increased from ₹17 crores in previous quarter and from ₹6 crores in Q2 FY26
Financial Performance - H1 FY27
Revenue from operations: ₹2,484 crores, representing 7.1% year-on-year growth
Domestic sales: ₹1,753 crores (8.2% growth)
Export sales: ₹730 crores (4.5% growth)
EBITDA: ₹210 crores (31.4% growth)
EBITDA margin: 8.4% (156 basis points expansion)
Profit before tax: ₹59 crores, increased from ₹20 crores in H1 FY26
Profit after tax: ₹41 crores, increased from ₹13 crores in H1 FY26
EPS: ₹8.76, increased from ₹2.81 in H1 FY26 (3.1x growth)
Operational Highlights
Power and fuel costs decreased by ₹16.9 crores during H1 FY27 compared to corresponding period last year
Finance costs reduced by ₹1.3 crore compared to corresponding period last year
Return on capital employed improved from 5.1% in FY26 to 6.5% in H1 FY27
Other equity increased from ₹1,325 crores in FY26 to ₹1,531 crores in H1 FY27, primarily due to unrealized fair valuation gains of ₹181 crores from equity investments received pursuant to composite scheme of arrangements involving HEG Limited, HEG Graphite Limited, Bhilwara Energy Limited
Exceptional Item
Company recognized one-time exceptional provision of ₹11.5 crores towards electricity duty on captive solar power generation following adverse Rajasthan High Court judgment
Company has challenged the judgment before Supreme Court by filing SLP
₹7.42 crore has been deposited under protest pending adjudication
Strategic Initiatives
LNJ NDS9 Global Private Limited: New strategic venture with Spain-based NDS9 for premium denim and knit garments manufacturing. RSWM holds 74% stake, NDS holds 26%. Phase-1 investment of ₹208 crores. Expected to provide full textile value chain exposure.
LNJ GreenPET: Bottle-to-bottle recycling project likely to commence commercial production in Q1 FY28. Total expected revenue of ₹200 crores.
Knitting Expansion: ₹92 crores expansion project to be completed by December 2026, adding 250 metric tons of knitted production capacity and printing capabilities.
Management Commentary & Outlook
Industry facing challenges from geopolitical tensions, raw material price volatility (cotton prices increased by ₹16,000 per candy, polyester prices increased from ₹96 to ₹146), and supply chain disruptions
Focus on RSWM 2.0 transformation strategy prioritizing profitability over volume-led expansion
Fabric division (Denim and Knit) facing margin pressure due to inability to fully pass on raw material cost increases
Target double-digit EBITDA margins for fabric division in coming quarters
Revenue mix expected to shift from current 74% yarn/26% fabric to approximately 67% yarn/33% fabric by next year
Debt repayment schedule: ₹95 crores in current half year, ₹180 crores planned for next financial year
Current standalone debt: ₹1,480 crores
Equity Investments
HEG Advanced shares: 1,59,06,195
HEG Limited shares: 15,91,955
Capital Allocation
Equity contribution in LNJ NDS9: Approximately ₹46 crores
Equity contribution in LNJ GreenPET: Approximately ₹62 crores (₹29 crores already infused)
Preferential issue from LNJ Textiles Advisory: ₹36 crores investment expected, with ₹27 crores to be infused in bottle-to-bottle recycling
