Elevated gas costs due to Gulf tensions
Gas availability improved but costs have risen significantly, impacting denim margins. Passing on cost increases to customers takes time.
RSWM / bear-case history
Track the concerns that keep returning.
RSWM · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
high
Lag in passing on input cost increases
Multiple cost increases (gas, dyes, freight, yarn) cannot be immediately passed to customers, compressing spreads in denim and knitting.
US tariff impact on indirect exports
Though direct US exposure is limited, indirect impact through garment exporters has affected order book recovery, expected to take two more quarters.
High debt for green PET project
The ₹427 crore project is 70% debt-financed (₹300 crore loan), raising leverage concerns. Management did not address equity dilution risk.