Transcript of Q4 & FY26 Earnings Conference Call held on Thursday, May 7, 2026
RSWM · price
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RSWM Limited reported a strong turnaround in FY26, moving from a loss of ₹41 crores PAT to a profit of ₹52 crores. Full-year revenue stood at ₹4,554 crores (down 5.6% YoY) due to weak global demand and the closure of Chhata operations (which contributed ₹250 crores). However, EBITDA improved significantly to ₹327 crores (up 40.5% YoY) with margins expanding by 231 basis points to 7.1%. Management attributed the improvement to better product mix, working capital optimization (inventory reduced by ₹110 crores), and cost controls (finance costs down 9.2% at ₹123 crores). Debt was reduced from ₹1,621 crores to ₹1,510 crores. Looking ahead, management expressed confidence in achieving double-digit EBITDA, driven by knitting expansion (₹92 crores CAPEX), new customer additions in US and EU markets, and improving utilization rates across businesses.
The company has successfully navigated a challenging year with visible margin improvement. The focus on profitability over volumes, working capital discipline, and debt reduction signals a stronger balance sheet. While revenue growth remains muted due to external headwinds, the path to double-digit EBITDA margins and potential revenue of ₹6,200-6,500 crore in 3-4 years appears achievable if market conditions normalize.