Transcript of Earning Call held on 20th May, 2026.
BANSWRAS · price
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Banswara Syntex reported FY26 total income of ~INR1,370 crores with EBITDA of ~INR144 crores (22.5% YoY growth, ~11% margin) and PAT of INR28.4 crores (32.8% YoY growth). Q4 was particularly strong with PAT up 87% YoY to INR9.6 crores. Yarn division faced headwinds due to labor shortages (capacity utilization at 77-78%) with revenue declining 2% to INR449 crores. Fabric division delivered record revenue of INR569 crores (up 5% YoY) driven by premium products and wool-blended fabrics. Garment division was the star performer with 18% revenue growth to INR324 crores, adding Walmart as a key new customer. Management guided for FY27 revenue of INR1,450-1,500 crores and EBITDA margins of 10.5-11% over the medium-term, with H2 expected to be stronger than H1. Net debt stood at INR483 crores with planned capex of INR135-140 crores for FY27.
The company demonstrated resilience with strong profitability growth despite headwinds. The strategic shift toward higher-value Fabric and Garment segments (now 66% of revenue) and new customer additions like Walmart provide visibility for continued growth. Near-term margin pressure remains due to raw material cost increases and geopolitical uncertainties, but medium-term outlook is positive with margin stability expected.