Banswara Syntex Limited has informed the Exchange about the Transcript of earnings call held on August 8, 2025
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Banswara Syntex reported Q1 FY26 total income of INR309.6 crores, up 12.7% year-on-year, but slipped into a loss at the PAT level with a loss of INR1.4 crores versus profit last year. EBITDA rose marginally to INR21.9 crores (margin of 7.1%), hurt by a temporary labour shortage in the yarn division which pushed yarn capacity utilisation down to 70%. Garments were the strongest segment, growing 42% YoY to INR75 crores with capacity utilisation at 78%, while fabric revenue grew only 4% to INR117 crores. Management maintained its full-year FY26 targets of INR1,550 crores in revenue and a 12% EBITDA margin, expecting a recovery from Q3 FY26 onwards, and guided capex of around INR100 crores for the year against INR148 crores last year. Net debt stood at INR465 crores as of 30 June, with management indicating deleveraging is unlikely this year but expected to begin in FY27.
Short-term pain is visible in the bottom line, but management's confidence in hitting the INR1,550 crore revenue and 12% EBITDA target by year-end keeps the longer-term thesis intact; however, high net debt of INR465 crores and rising interest/depreciation costs mean profit before tax will stay under pressure until utilisation normalises, which is a watchpoint for shareholders.