Outcome of Board Meeting
RSWM · price
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Awaiting price reaction for this filing.
RSWM's Board approved the unaudited Q1 FY26 (quarter ended June 30, 2025) financial results. Standalone revenue was about ₹1,288 Cr, up roughly 10% year-on-year from ~₹1,171 Cr in Q1 FY25. Standalone net profit jumped to ₹6.96 Cr from ₹1.59 Cr in Q1 FY25, while consolidated profit swung to ₹8.37 Cr from a loss of ₹4.28 Cr. Standalone EPS rose to ₹1.48 from ₹0.34. Statutory auditor Lodha & Co LLP gave an unmodified limited review report with no qualifications. Separately, the Board approved closure of the old spinning operations at the Chhata Unit (knitting will continue), a ₹92 Cr capex for knitting modernization at Mordi and Chhata (expected to lift knitting capacity by 20% and add ~₹220 Cr annual revenue), and a ~₹50 Cr investment to add 50 MW of solar and wind renewable energy capacity.
A sharp turnaround in profitability, especially at the consolidated level, and a clear growth plan via knitting capacity expansion and renewable energy should be viewed positively by shareholders. The Chhata spinning shutdown is a cost-rationalization move for underperforming old assets, not a major business contraction.