Export Revenue (Q4)
₹368 crore
+11.4% QoQ
Sequential recovery in exports after weak demand.
RSWM
Other
2026-04-??
RSWM Ltd — Q4 FY26
RSWM reported Q4 FY26 revenue of ₹1,142 crore, down 9.1% YoY due to weak export demand and closure of Chhatta spinning.
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
RSWM reported Q4 FY26 revenue of ₹1,142 crore, down 9.1% YoY due to weak export demand and closure of Chhatta spinning. However, EBITDA grew 8.5% YoY to ₹85 crore with margin expanding 115 bps to 7.4%, driven by cost controls and product mix optimization. Full-year PAT turned positive at ₹52 crore vs a loss of ₹41 crore last year, aided by a ₹23 crore deferred tax reversal. Management highlighted improved utilization potential of 7-10% across denim, melange, and knitting segments as geopolitical headwinds ease. The company is investing ₹427 crore in a green PET project (B2B) with 70% debt financing. Risks include elevated gas costs due to Gulf tensions and lag in passing on input cost increases to customers.
Key Numbers
Melange Utilization
65-70%
Target 85-90%
Expect utilization to improve by 15-20pp in coming quarters.
Denim Utilization
80%
Target 85-90%
Potential 5-10pp improvement as gas availability normalizes.
Knitting Capacity Expansion
920 tons
+53% vs current 600 tons
New printing segment added; expected to improve EBITDA by 3-4%.
Management Guidance
Q1 FY27 EBITDA expected flat to slightly better than Q4 FY26
Management expects current quarter performance to be slightly better or equal to Q4 FY26 EBITDA of ₹85 crore.
Management guidance marginsKnitting expansion to be operational by Q3 FY27
The 920-ton capacity expansion, including printing, is expected to be fully implemented in the third quarter of FY27.
Management guidance expansionGreen PET project (B2B) to be operational by Q1 FY28
Construction starts mid-May 2026; first quarter of next financial year targeted for operationalization.
Management guidance expansionWorking capital reduction target through inventory and receivables management
Inventory reduced to ₹620 crore from ₹730 crore; trade receivables to ₹631 crore from ₹696 crore. Continued focus on optimization.
Management guidance otherKey Risks
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.
high · management_commentaryLag 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.
medium · analyst_questionUS 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.
medium · analyst_questionHigh 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.
medium · analyst_questionNotable Quotes
The turnaround which we are seeing is more because of internal operations than market led.
Our focus has been on improving the quality of earnings rather than chasing only volumes at a cost.
We are not emphasizing any close of spindles or loom or other operations in this quarter and next quarter... that journey is largely done.
Frequently Asked Questions
What was RSWM's revenue in Q4 FY26?
RSWM reported revenue of ₹1,142 Cr in Q4 FY26, representing a -9.1% change compared to the same quarter last year.
What guidance did RSWM management give for FY27?
Q1 FY27 EBITDA expected flat to slightly better than Q4 FY26: Management expects current quarter performance to be slightly better or equal to Q4 FY26 EBITDA of ₹85 crore. Knitting expansion to be operational by Q3 FY27: The 920-ton capacity expansion, including printing, is expected to be fully implemented in the third quarter of FY27. Green PET project (B2B) to be operational by Q1 FY28: Construction starts mid-May 2026; first quarter of next financial year targeted for operationalization. Working capital reduction target through inventory and receivables management: Inventory reduced to ₹620 crore from ₹730 crore; trade receivables to ₹631 crore from ₹696 crore. Continued focus on optimization.
What are the key risks for RSWM in FY27?
Key risks include 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.; 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..
Did RSWM meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full RSWM Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.