Banswara Syntex Q2 FY27 results: net profit up 9.3% to ₹7.74 crore, revenue up 2.9%

How did Banswara Syntex perform in Q2 FY27?

Banswara Syntex recorded consolidated revenue of ₹354.87 crore in Q2 FY27, up 2.9% from ₹344.71 crore in Q2 FY26 and 12.4% from ₹315.83 crore in Q1 FY27. EBITDA was ₹31.87 crore, compared with ₹30.09 crore a year earlier and ₹22.16 crore in the previous quarter. The EBITDA margin was 9.0%, up 0.3 percentage points year on year and 2.0 percentage points sequentially.

Profit before tax was ₹10.55 crore, up 19.3% from ₹8.84 crore in Q2 FY26 and 104.1% from ₹5.17 crore in Q1 FY27. After tax of ₹3.23 crore, the company reported a net profit of ₹7.74 crore, against ₹7.08 crore a year earlier and ₹4.61 crore in the previous quarter. Basic EPS was ₹2.26, compared with ₹2.07 in Q2 FY26 and ₹1.35 in Q1 FY27. On the standalone basis, revenue was ₹354.46 crore and net profit was ₹8.11 crore.

What changed in Banswara Syntex's costs and profit?

Total expenses rose 2.8% to ₹348.21 crore from ₹338.73 crore in Q2 FY26. Cost of materials increased ₹4.67 crore, or 3.0%, to ₹158.81 crore, while employee cost rose ₹8.78 crore, or 10.6%, to ₹91.42 crore. Other expenses increased ₹10.84 crore, or 12.6%, to ₹96.68 crore, finance costs rose ₹0.81 crore, or 7.7%, to ₹11.36 crore, and depreciation rose ₹0.28 crore to ₹13.84 crore.

Other income increased ₹1.02 crore, or 35.7%, to ₹3.88 crore from ₹2.86 crore in Q2 FY26. Tax expense rose ₹0.72 crore, or 28.7%, to ₹3.23 crore. There was no exceptional item in either quarter. Management said yarn was affected by higher raw-material and export-freight costs and supply-chain disruptions, while higher working-capital borrowings and additional term-loan disbursements increased finance costs.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue rose 3.1% to ₹670.70 crore from ₹650.68 crore in H1 FY26, while total income increased 3.6% to ₹681.18 crore. Profit before tax rose 142.6% to ₹15.72 crore from ₹6.48 crore, and net profit increased 116.3% to ₹12.35 crore from ₹5.71 crore. Basic EPS rose 116.2% to ₹3.61 from ₹1.67.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹1,347.43 crore, up from ₹1,272.20 crore at 31 March 2026, and total equity was ₹593.83 crore against ₹584.90 crore. Borrowings increased to ₹515.12 crore from ₹473.65 crore, while cash rose to ₹3.18 crore from ₹1.60 crore. Inventories were ₹377.40 crore against ₹303.19 crore, trade receivables were ₹224.62 crore against ₹243.53 crore, and trade payables were ₹91.48 crore against ₹80.24 crore.

H1 FY27 operating cash flow was ₹22.82 crore, compared with ₹19.67 crore in H1 FY26. Investing cash flow was negative ₹37.50 crore against negative ₹48.07 crore, financing cash flow was ₹16.26 crore against ₹25.02 crore, and capital expenditure was ₹36.01 crore against ₹49.39 crore.

How has Banswara Syntex done over the last 8 quarters?

Revenue reached its highest quarterly level at ₹365.65 crore in Q4 FY26 and its lowest at ₹305.97 crore in Q1 FY26. It recovered to ₹354.87 crore in Q2 FY27 after ₹315.83 crore in the previous quarter, while revenue rose year on year in each of the last six quarters.

Quarterly net profit peaked at ₹14.00 crore in Q3 FY26 and bottomed at a loss of ₹1.37 crore in Q1 FY26. It fell to ₹4.61 crore in Q1 FY27 before recovering to ₹7.74 crore in Q2 FY27. The EBITDA margin was highest at 11.8% in Q4 FY26 and lowest at 5.8% in Q1 FY26, then fell to 7.0% before recovering to 9.0%.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, together with the statement of assets and liabilities and the half-year cash-flow statement. No dividend or fund-raising decision was disclosed in the same-day filings. The board also approved the appointment of Dinesh Nolkha and Ruzbeh Irani as non-executive independent directors for five consecutive years from 3 November 2026, subject to shareholder approval, and approved a postal ballot notice for the appointments.

The board appointed Utkarsh Gaur as company secretary and compliance officer with effect from 12 November 2026, and Sudhanshu Singhal as chief operating officer for the Garment division with effect from 2 November 2026. The trading window for directors, key managerial personnel and connected persons was scheduled to open on 5 November 2026.

What did Banswara Syntex's management say?

Management guided FY27 revenue, including other income, to ₹1,450–1,500 crore, EBITDA including other income and excluding OCI and exceptional items to ₹153–165 crore, and the EBITDA margin to 10.5%–11%. It expects Fabric and Garment to increase their revenue contribution from 63% in FY25 to 69% in FY27, while Yarn revenue is expected to reach steady-state growth and production output and capacity utilisation are expected to improve in H2 FY27.

Vice-Chairman Ravindra Kumar Toshniwal said Yarn’s domestic sales improved sequentially in Q2 FY27, supported by higher captive consumption in the Fabric division. He said Fabric had encouraging Q3 order visibility and Garment sales improved through exports, although logistics challenges caused dispatch delays and jacket orders remained strong. Management also said it remained confident of achieving its FY27 guidance.

Management identified higher raw-material and export-freight costs, supply-chain disruptions, subdued key export markets, vessel delays and logistical challenges as constraints. It said finance costs rose because of higher working-capital borrowings and additional term-loan disbursements, while power and fuel costs increased because of higher coal prices and grid power tariffs. The presentation did not provide details of analysts’ questions.

How did Banswara Syntex shares react?

After the filing appeared, the stock was up 3.2% after 5 minutes, 1.8% after 15 minutes and 5.7% after 30 minutes. It closed 7.0% higher on the reaction day from the pre-results close. By the next day's close, it was 4.9% above that pre-results close; no five-day reaction was available.

The Other Textile Products industry median move was 0.4% on the reaction day and 0.6% by the next day's close. Banswara Syntex therefore exceeded the industry by 6.5 percentage points on the reaction day and 4.3 percentage points by the next day's close. The Nifty Microcap 250 was up 1.4% on the reaction day. Earlier reaction-day moves were positive on five of the eight listed dates and negative on three, including 2.3% lower on 31 July 2026 and 8.2% lower on 15 May 2025.

How did other Other Textile Products companies do?

Among 61 Other Textile Products companies compared on revenue growth, the median was 24.1%, above Banswara Syntex’s 2.9% consolidated revenue growth. Thirteen peers grew more slowly than Banswara Syntex, while 48 grew faster. Of 64 peers for which profit was compared, 43 reported higher profit.