RSWM posts Q1 FY26 turnaround with Rs 70 Million profit

During the quarter, RSWM benefited from favourable trade policy developments, notably the recently concluded India–UK Free Trade Agreement, which offers tariff advantages for textile exports.

RSWM, one of India’s largest manufacturers of value-added synthetic, mélange, blended spun yarns, denim fabric, knitted fabric, and green polyester fibres, announced its unaudited financial results for the quarter ended June 30, 2025, reporting a strong operational turnaround and margin expansion despite subdued export demand.

For Q1 FY26, the company posted revenue of Rs 11.69 billion, marginally lower by 3.2 per cent year-on-year due to soft overseas markets. Gross profit improved 1.3 per cent to Rs 4.40 billion, with gross margin rising to 37.3 per cent, up 152 basis points Y-o-Y and 307 bps sequentially, supported by cost optimisation and an improved product mix. EBITDA grew sharply by 50.6 per cent to Rs 810 million, while the EBITDA margin expanded to 6.9 per cent, an increase of 243 bps Y-o-Y and 63 bps QoQ. Profit after tax stood at Rs 70 million, marking a significant turnaround from the Rs 130.7 million loss recorded in Q1 FY25. The PAT margin rose to 0.6 per cent, improving by 46 bps from the previous quarter.

During the quarter, RSWM benefited from favourable trade policy developments, notably the recently concluded India–UK Free Trade Agreement, which offers tariff advantages for textile exports. Progress in India–EU trade negotiations is also expected to create opportunities for sustainable and ESG-aligned product exports. Despite headwinds from inflation, tariffs, and geopolitical tensions, these policy shifts are expected to reshape procurement patterns and stimulate demand for responsibly sourced, high-value textiles.

The company continued its focus on strategic growth and operational efficiency by streamlining processes, reducing waste, and enforcing strict financial discipline. A sharper emphasis on higher-margin synthetic yarns, export-driven growth, and lean inventory management contributed to improved cash flows and profitability.

Commenting on the performance, Riju Jhunjhunwala, Chairman and Managing Director, RSWM said, “FY26 will be a pivotal year for the Indian textile sector as global dynamics evolve. The India–UK FTA places India on par with global competitors in the UK apparel market, and we expect to see the full benefits by FY27. Meanwhile, the ongoing India–EU FTA talks open a major window for ESG-aligned sourcing, leveraging India’s strengths in organic cotton, handloom textiles, and recycled fibres. Our strong supply chains, trusted partnerships, and reliable delivery networks position us to meet rising demand from global buyers.

Looking ahead, we remain focused on enhancing operational agility, advancing ESG commitments, and expanding our international footprint. With continued policy support, progressive trade agreements, and deep customer engagement, RSWM is poised to strengthen its leadership in the global textile value chain while delivering long-term value to stakeholders.”