THE BOARD OF DIRECTORS OF THE COMPANY IN THEIR MEETING HELD ON TODAY CONSIDERED AND APPROVED UNAUDITED FINANCIAL RESULTS FOR QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER 2025
Awaiting price reaction for this filing.
Rainbow Denim's Board approved unaudited Q2 FY26 results with revenue from operations of Rs 6,892.37 lakh (vs Rs 6,806.63 lakh in Q1) and net profit of Rs 516.91 lakh (down from Rs 657.36 lakh in Q1). For the half year, revenue stood at Rs 13,699 lakh and net profit at Rs 1,174.27 lakh (EPS of Rs 8.84). Profit declined about 21% quarter-on-quarter despite a slight uptick in revenue, pointing to margin pressure from higher raw material and other expenses. The auditor (Krishan Rakesh & Co.) issued an unmodified limited review report. The company emerged from an NCLT liquidation process in July 2023 under a new management team.
Negative operating cash flow of Rs 964.60 lakh for H1 FY26 and a stretched debt-to-equity ratio of roughly 2.8x (total borrowings of Rs 13,838 lakh against equity of Rs 4,936 lakh) are red flags despite reported profits. The QoQ PAT decline and shrinking EBITDA margin may weigh on near-term sentiment, though the company is operationally profitable and backed by a clean auditor report.