RSWM Limited has informed the Exchange about Transcript
RSWM · price
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Awaiting price reaction for this filing.
RSWM reported Q1 FY26 revenue of ₹1,169 crore, down 3.2% YoY due to weak exports, but profitability improved sharply: gross profit rose to ₹440 crore (margin 37.3%, up 152 bps YoY), EBITDA jumped 50.6% YoY to ₹81 crore (margin 6.9%), and the company swung to a PAT of ₹7 crore versus a ₹13.7 crore loss a year ago. The board approved ₹92 crore of capex to expand knitting capacity at Mordi and Chhata by 20% (from 750 to 900 metric tons/month), expected to add about ₹220 crore in annual revenue with 18-20% ROI and a 5-year payback. Management also announced a ₹50 crore renewable energy push (raising green capacity from 74 MW to 124 MW, taking 45% of consumption to renewables) and is rationalizing the loss-making spinning operations at Chhata. Total borrowings stand at ₹1,600 crore, with the CFO stating new debt will be matched by repayments so debt ratios remain unchanged; total FY26 capex guided at ₹150-200 crore.
The earnings beat on margins, return to profit, and clear capex plan for higher-value knitting and denim capacity are positives for shareholders, but the 3.2% revenue dip, ongoing US tariff uncertainty (indirect hit through customers), and a still-heavily-indebted balance sheet (₹1,600 crore) keep near-term sentiment cautious. The stock may react to the margin expansion story and knitting expansion, though lack of firm guidance on reaching double-digit EBITDA could limit upside.