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Revenue
₹340 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
₹42 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Banswara Syntex delivered a stable Q3 FY26 with EBITDA of ₹42 crore (up 25% QoQ) and PAT of ₹13.2 crore (up 89% QoQ), driven by value-added product mix and cost management. Revenue from operations was not explicitly stated; total income was ₹343.3 crore. The yarn division maintained steady revenue of ₹114 crore at 81% capacity utilization, while fabric revenue was ₹150 crore with a shift toward premium wool-blended and stretch products. The garment division grew 4% YoY to ₹73 crore, with jackets/suits now contributing 26% of revenue (up from 16% in Q2). Management guided for 15-20% revenue growth in FY27 and EBITDA margin improvement from the current ~12.5%. Net debt rose to ₹495 crore due to capex and working capital, but deleveraging is expected from FY28. Key risk: garment capacity utilization remains low at 65% due to pending SEZ-to-DTA transfer, limiting near-term growth.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects 15-20% growth across fabric and garment divisions in the next financial year, building on FY26 exit run-rate of ~₹1,300-1,350 crore.
- Based on Q3 EBITDA margin of ~12.5%, management expects to maintain and improve margins going forward in FY27.
- Pending permission to transfer Surat SEZ capacity to DTA will add 35% garment capacity within 4-5 months, lifting utilization from 65%.
- Capex will be completed by end of FY27; thereafter, with EBITDA margin above 12.5%, debt repayment will begin from FY28.
Risks flagged
- Garment division utilization stuck at 65% due to pending SEZ-to-DTA transfer; any further delay could limit near-term revenue growth.
- Analyst raised concern about Bangladesh getting 0% tariff on US fiber imports; management downplayed impact on Banswara but acknowledged potential risk for cotton-based peers.
- Net debt rose to ₹495 crore (debt-to-equity ~0.9x) due to capex and working capital; further increase expected before deleveraging in FY28.
- Analyst questioned whether demand or pricing discipline is limiting growth; management acknowledged need to reach new customers without losing premium positioning.
Key quotes
- Our biggest and inherent advantage which we need to leverage more and more to get our pricing advantage is our verticality.
- We do believe that the time is now and the future lie ahead is one in which we will experience some of the best years that we have yet to experience.
- We are not making an additional capex there. What we are going to be doing is leveraging our own available capacities to get to a turnover of 1,800 crores.
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