Revised Financial Results for Year Ended March 31 2026
Awaiting price reaction for this filing.
Rainbow Denim has resubmitted its audited results for FY26, correcting a clerical rounding error (in ten lakhs vs lakhs) in the Statement of Assets and Liabilities; the underlying financial numbers are unchanged. For the full year, revenue from operations rose to Rs. 27,054.15 lakhs from Rs. 16,431.47 lakhs, a jump of about 65%, while net profit climbed to Rs. 2,342.32 lakhs (EPS Rs. 17.63) from Rs. 1,395.23 lakhs (EPS Rs. 10.50), also around 68% higher. Q4 FY26 profit, however, dipped to Rs. 486.54 lakhs from Rs. 866.22 lakhs a year ago despite higher revenue. The balance sheet shows a sharp build-up in total assets to Rs. 28,363.33 lakhs, with long-term borrowings of Rs. 7,912 lakhs and short-term borrowings of Rs. 12,591 lakhs, while cash flow from operations was negative at Rs. (2,161.20) lakhs. The auditor issued an unqualified opinion but flagged an Emphasis of Matter about the new management not having received historical books and records from the previous liquidator/resolution professional.
The headline FY26 results look strong with revenue and profit both growing sharply, but the negative operating cash flow, mounting working capital (inventories and receivables nearly doubled), and a very high debt-to-equity ratio of roughly 3.4x suggest growth is largely debt-funded. For shareholders, this revised filing carries no change in reported earnings, but the high leverage and stretched working capital remain key risks to watch.