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Elevated gas costs due to Gulf tensions
View Risks →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.
bullish
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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.
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Export Revenue (Q4)
₹368 crore
+11.4% QoQ
Sequential recovery in exports after weak demand.
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%.
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Guidance and risk preview
Management expects current quarter performance to be slightly better or equal to Q4 FY26 EBITDA of ₹85 crore.
Gas availability improved but costs have risen significantly, impacting denim margins.
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