Financial Performance Summary

Q2 FY27 Standalone Performance (Quarterly)

  • Total Income: ₹1,331.84 crore, up 13.8% QoQ and 14.9% YoY
  • EBITDA: ₹115.89 crore, up 23.2% QoQ and 47.1% YoY
  • EBITDA Margin: 8.70% (66 bps improvement QoQ, 191 bps improvement YoY)
  • PAT: ₹24.53 crore, up 46.6% QoQ and 3.9x YoY
  • PAT Margin: 1.84% (41 bps improvement QoQ, 130 bps improvement YoY)
  • PBT: ₹34.72 crore, up 42.3% QoQ and 3.5x YoY

H1 FY27 Standalone Performance (Half-Yearly)

  • Total Income: ₹2,501.94 crore, up 6.9% YoY
  • EBITDA: ₹209.96 crore, up 31.4% YoY
  • EBITDA Margin: 8.39% (156 bps improvement YoY)
  • PAT: ₹41.27 crore, up 3.1x YoY
  • PAT Margin: 1.65% (108 bps improvement YoY)
  • PBT: ₹59.12 crore, up 3.0x YoY

Exceptional Item

  • The Company recognized a provision of ₹11.50 crore against an order of the high court regarding electricity duty exemption on captive solar power generation, classified as an exceptional item during Q2 FY27.
  • A Special Leave Petition (SLP) has been filed in the Supreme Court against this judgment.
  • Subsequent to the balance sheet date, the company deposited ₹7.42 crore under protest.

Segment Revenue Breakdown (H1 FY27)

  • Fabric: 78.4% of total revenue (₹2,484 crore)
  • Yarn: 21.6% of total revenue
  • Total segment revenue increased by ₹164.4 crore (7.1% YoY)

Balance Sheet Position (H1 FY27)

  • Total Equity: ₹1,578 crore (FY26: ₹1,372 crore)
  • Equity Share Capital: ₹47 crore (unchanged from FY26)
  • Other Equity: ₹1,531 crore (FY26: ₹1,325 crore)
  • Total Assets: ₹3,761 crore (FY26: ₹3,468 crore)
  • Non-Current Assets: ₹2,088 crore (FY26: ₹1,903 crore)
  • Current Assets: ₹1,648 crore (FY26: ₹1,527 crore)
  • Inventories: ₹632 crore (FY26: ₹620 crore)
  • Trade Receivables: ₹742 crore (FY26: ₹631 crore)
  • Cash & Bank Balance: ₹7 crore (FY26: ₹4 crore)

Strategic Developments & Business Updates

Partnership with Noize Design Studio

  • RSWM entered into a partnership with Spain-based Noize Design Studio through LNJ NDS9 Global Private Limited.
  • This venture marks a strategic extension of RSWM's denim business into finished garments manufacturing.
  • The partnership combines RSWM's manufacturing infrastructure with NDS9's design and marketing strengths.
  • Aims to serve domestic and international garment brands and enhance RSWM's presence in the apparel value chain.

Acquisition of LNJ GreenPET

  • RSWM acquired 100% equity shareholding in LNJ GreenPET Private Limited for a total consideration of ₹20.01 crore, paid in cash.
  • The subsidiary has been allotted ~44 acres of land in Ratlam, Madhya Pradesh, and has received construction approval and necessary consents.
  • Core machinery order has been placed. Commercial production is expected to commence in Q1 FY28.
  • Business profile: Manufacturing food-grade recycled PET chips and granules through a bottle-to-bottle PET recycling facility.
  • Target sectors: FMCG, beverage, pharmaceutical, and packaging sectors.

Fundraising Plan

  • The company proposes to raise ₹36.06 crore through issuance of 24.70 lakh convertible warrants to the promoter group, LNJ Textiles Advisory LLP, at ₹146 per warrant.
  • Proceeds will be utilized for subsidiary projects and general corporate purposes.

Knitting Operations Upgrade

  • ₹92 crore investment to upgrade knitting operations and expand capacity.
  • Includes buying advanced machinery from Birla Advanced Knits Private Limited.
  • Machine acquisition completed in FY26; technology upgrade and expansion underway with completion expected by Q3 FY27.
  • Benefits expected to start reflecting from Q4 FY27 onwards.

Operational Highlights

  • Yarn Division: Capacity 154K MT PA with 5.47 lakh spindles and 6,120 rotors
  • Denim Division: Capacity 32.4 million meters PA with 178 looms and 3,000+ variants
  • Knitted Fabric Division: Capacity 9,360 MT PA with 2.54 lakh needles and 96 machines
  • ROCE improved from 5.1% in FY26 to 6.5% in H1 FY27

Management Commentary

Mr. Riju Jhunjhunwala, CMD

Noted that H1 FY27 unfolded amid significant changes in the textile business environment with geopolitical developments, supply chain realignments, volatile input costs and uncertain export conditions influencing the industry.

Mr. Rajeev Gupta, JMD

Emphasized the strategic rationale behind the NDS9 partnership for forward integration into finished garments and value creation.

Mr. Nitin Tulyani, President & CFO

Highlighted Q2 performance achieved amid industry-wide challenges including geopolitical tensions in West Asia, supply-chain disruptions, elevated energy and ocean freight costs, rising polyester prices and uncertainty in export demand. The company continues to implement its RSWM 2.0 transformation strategy focusing on modernizing manufacturing facilities, replacing equipment, improving operational efficiency and managing working capital.

Sustainability & ESG

  • ICRA ESG Ratings assigned RSWM an ESG Impact Rating of 70, classified as 'Good'
  • RSWM reduced Scope 1 emissions by 40.5% in FY26
  • Received 'Data-Driven Sustainability Excellence in Textile Manufacturing' award at CITI Textile Sustainability & CITI-Birla Awards 2025–26