Banswara Syntex Ltd-$ — Q1 FY27 earnings call
Summary generated by AI from the official transcript Banswara Syntex Ltd-$ filed with BSE on 07 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Banswara Syntex reported total income of INR322.4 crores in Q1 FY27, up 4.1% year-on-year, with EBITDA of INR29.5 crores and a profit after tax of INR4.4 crores compared to a loss in the same quarter last year. Management said the quarter was affected by seasonal softness, labor shortages in the yarn division, and export logistics delays in the garment division due to the West Asia crisis. Management discussed the India-U.K. Free Trade Agreement, order book visibility through November-December, and planned capital investments of about INR140 crores for the year.
Numbers mentioned
Total income: INR322.4 crores (Q1 FY27)
p. 4
“Our total income increased by 4.1% to INR322.4 crores in quarter 1 FY27 on a year-on-year basis.”
Ravindra Toshniwal, page 4 of the filed PDF · View the filing
EBITDA: INR29.5 crores (Q1 FY27)
p. 4
“The EBITDA stood at INR29.5 crores during the quarter.”
Ravindra Toshniwal, page 4 of the filed PDF · View the filing
Profit before depreciation and tax: INR19.6 crores (Q1 FY27)
p. 4
“Profit before depreciation and tax came in at INR19.6 crores.”
Ravindra Toshniwal, page 4 of the filed PDF · View the filing
Profit after tax: INR4.4 crores (Q1 FY27)
p. 4
“The company recorded a profit after tax of INR4.4 crores in this quarter as compared to a loss of INR1.4 crores, which occurred in the quarter 1 of FY26.”
Ravindra Toshniwal, page 4 of the filed PDF · View the filing
Yarn division revenue: INR96 crores (Q1 FY27)
p. 4
“The yarn division recorded a revenue of INR96 crores in quarter 1 FY27 compared to INR110 crores in the corresponding quarter last year.”
Ravindra Toshniwal, page 4 of the filed PDF · View the filing
Yarn division capacity utilization: 70% (Q1 FY27)
p. 4
“Sales volume stood at 36 lakh kgs and the capacity utilization stood at 70% during the quarter.”
Ravindra Toshniwal, page 4 of the filed PDF · View the filing
Fabric division revenue: INR147 crores (Q1 FY27)
p. 5
“The division delivered a revenue of INR147 crores, representing a healthy 25% year-on-year growth.”
Ravindra Toshniwal, page 5 of the filed PDF · View the filing
Fabric division capacity utilization: 80% (Q1 FY27)
p. 5
“Sales volume increased by 18% year-on-year to 59 lakh meters and capacity utilization improved to 80% during the quarter.”
Ravindra Toshniwal, page 5 of the filed PDF · View the filing
Garment division revenue: INR69 crores (Q1 FY27)
p. 6
“The business reported a revenue of INR69 crores during quarter 1 FY27 compared to INR75 crores in the corresponding quarter last year.”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
Garment division capacity utilization: 69% (Q1 FY27)
p. 6
“The sales volume stood at 8 lakh pieces, while capacity utilization was 69% during this quarter.”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
Consolidated EBITDA margin: 9% (Q1 FY27)
p. 8
“In this first quarter, we achieved 9%, but we expect to cover it up an average 12% by the end of the year.”
Ravindra Toshniwal, page 8 of the filed PDF · View the filing
Exports as share of total turnover: 48%
p. 8
“The overall exports remains at 48%.”
Kavita Gandhi, page 8 of the filed PDF · View the filing
Jackets closed in Q1: 135,000 jackets (Q1 FY27)
p. 8
“In Q1, the demand for jackets has been relatively soft. I think we closed at about 135,000 jackets.”
Shaleen Toshniwal, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Consolidated EBITDA margin — 12% · FY27
stated conditionally by Ravindra Toshniwal
p. 11
“We had projected a margin of 12% EBITDA over this INR1,500 crores. So quarter 1 has been 9%. We hope to recover the rest in the 3 quarters that are to come to average out 12%.”
Ravindra Toshniwal, page 11 of the filed PDF · View the filing
Capital investment for the year — INR140 crores · FY27
stated firmly by Ravindra Toshniwal
p. 9
“This year, we will be investing another about INR140 crores is planned and already sanctioned.”
Ravindra Toshniwal, page 9 of the filed PDF · View the filing
Garment and Fabric business expansion — 20-25% in garment, 20% in fabric · FY28
stated as an aspiration by Ravindra Toshniwal
p. 9
“I mean in general, we are looking at an expansion next year of about 20%, 25% in garment and an expansion of about 20%.”
Ravindra Toshniwal, page 9 of the filed PDF · View the filing
Garment division quarterly sales — INR100 crores per quarter · next 3 quarters of FY27
stated conditionally by Shaleen Toshniwal
p. 10
“So I'm confident that we're looking at possibly a INR100 crores quarter sales from here onwards on the garment side.”
Shaleen Toshniwal, page 10 of the filed PDF · View the filing
Garment division full year revenue — INR375-380 crores · FY27
stated conditionally by Shaleen Toshniwal
p. 13
“So we are expecting in garments probably a INR100 crores quarter for the next 3 quarters, which will take us close to what we were expecting around INR375 crores, INR380 crores to finish plus whatever export incentives, etc.”
Shaleen Toshniwal, page 13 of the filed PDF · View the filing
Surat facility DTA availability — November or December
stated conditionally by Shaleen Toshniwal
p. 14
“So we're hoping that we should have the facility for use in DTA by November or December and operational for start in, let's say, April of '27.”
Shaleen Toshniwal, page 14 of the filed PDF · View the filing
Surat facility investment for expansion — INR200 crores additional revenue runway with about INR50 crores investment
stated as an aspiration by Shaleen Toshniwal
p. 14
“And that would give us additional runway to grow the business an additional INR200 crores with an approximate investment of about INR50 crores.”
Shaleen Toshniwal, page 14 of the filed PDF · View the filing
U.K. garment exports — INR50 crores · next year
stated conditionally by Shaleen Toshniwal
p. 17
“But we have now got a good inquiry pipeline, and we expect this to double next year to at least INR50 crores.”
Shaleen Toshniwal, page 17 of the filed PDF · View the filing
Garment division revenue this year — INR400 crores · FY27
stated conditionally by Shaleen Toshniwal
p. 16
“So we are looking at closing close to about INR400 crores this year.”
Shaleen Toshniwal, page 16 of the filed PDF · View the filing
EU operationalization for C&A — end December, early January
stated conditionally by Shaleen Toshniwal
p. 17
“and we're hopeful that this EU operationalization should happen by end December, early January, fingers crossed.”
Shaleen Toshniwal, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management gave export shares by division, jacket volume run-rates, segment EBITDA margin targets, and confirmed planned capex of INR140 crores this year for capacity expansion.
Answered by Ravindra Toshniwal
Asked by Akshay: What is the export contribution for fabrics and garments separately, jacket volumes, segment margins, and capacity expansion plans?
p. 8
“Right now if you get to the segment-wise margins, more or less, we expect the margins in the Fabric business to be about between 12% to 14% EBITDA and in the Garment business between, say, 8% to 10%.”
Ravindra Toshniwal, page 8 of the filed PDF · View the filing
Management attributed the garment revenue fall to a seasonally weak autumn/winter export window and delayed festive-season domestic shipments, saying the order book had since improved significantly.
Answered by Shaleen Toshniwal
Asked by Nishant: Why was the sequential drop in garment and yarn so sharp, and was the garment fall due to delayed shipments or lost demand?
p. 10
“Now to supplement it going forward, we're focusing on improving our autumn/winter product range.”
Shaleen Toshniwal, page 10 of the filed PDF · View the filing
Management reiterated a 12% EBITDA margin target for the year despite a 9% margin in Q1.
Answered by Ravindra Toshniwal
Asked by Pushkar Jain: What is the margin guidance for FY27 given the INR1,500 crores revenue guidance?
p. 11
“We had projected a margin of 12% EBITDA over this INR1,500 crores. So quarter 1 has been 9%. We hope to recover the rest in the 3 quarters that are to come to average out 12%. We are still maintaining that.”
Ravindra Toshniwal, page 11 of the filed PDF · View the filing
Management said garment and yarn growth engines were still ramping and expected visible growth pickup from Q2 onward, citing past investment amounts by division.
Answered by Ravindra Toshniwal
Asked by Nirbhay Mahawar: Given large past investments, is the company content with muted revenue growth?
p. 12
“The investments that have been made, I wouldn't look at a 5-year window, but I'd just say in the last 3 years or so, we've done maybe about INR350 crores, in which maybe about INR150 crores happened in the Fabric business and about INR130 crores happened in the yarn business.”
Ravindra Toshniwal, page 12 of the filed PDF · View the filing
Management pointed to a strong order book for garments through December and fabric through November as the basis for maintaining guidance.
Answered by Ravindra Toshniwal
Asked by Mohit Oberoai: What gives confidence in achieving FY27 revenue guidance despite weak Q1 growth?
p. 13
“But you will see improvements in quarter 2, quarter 3 and quarter 4. That's why we are maintaining the guidance, order book position for garments is almost full up to December end.”
Ravindra Toshniwal, page 13 of the filed PDF · View the filing
Management said key regulatory approvals had been secured and remaining steps should be completed within a few months, targeting operational start by April 2027.
Answered by Shaleen Toshniwal
Asked by Akshay Satija: Is there any update on the Surat facility?
p. 13
“we have gotten all of the approvals from GIDC and a no objection certificate and recommendation for de-notification from GIDC.”
Shaleen Toshniwal, page 13 of the filed PDF · View the filing
Management attributed past stagnation to the dissolution of a joint venture with a French company and said the business had since rebuilt with a stronger product mix and improved export positioning under new FTAs.
Answered by Ravindra Toshniwal
Asked by Nishant: Looking at the last decade, why has the company not grown despite large capex? What is different this time?
p. 15
“Yes. I mean, so if you look at the decade ago, we had the joint venture with the French company that got dissolved. And we had made a lot of investment then into various spinning capacities, fabric capacities and finishing capacities, because of the dissolution of the joint venture, we lost those sales.”
Ravindra Toshniwal, page 15 of the filed PDF · View the filing
Management said moving toward export-heavy garment mix could lift EBITDA from a low single-digit level to 8-10% and potentially 12%.
Answered by Shaleen Toshniwal
Asked by Nishant: How much could the export shift improve garment margins?
p. 16
“So from a situation of probably coming of low 3%, 4% EBITDA, we will probably move higher to 8%, 10% EBITDA and possibly even push to 12%.”
Shaleen Toshniwal, page 16 of the filed PDF · View the filing
Management gave current fabric and garment export figures to the U.K. and said garment exports to the U.K. were expected to double next year.
Answered by Ravindra Toshniwal
Asked by Palkesh Jain: What percentage of exports currently come from the U.K., and what is the medium-term expectation?
p. 17
“I think the fabric part of our total business exposure to the U.K. is about INR70 crores, INR80 crores on an annual basis.”
Ravindra Toshniwal, page 17 of the filed PDF · View the filing
Risks flagged
Labor availability shortage during Q1 affecting yarn division production
p. 4
“the temporary labor shortage during this season due to the various festivals and marriages does impact our production during this quarter and resulted in a lower output and sales.”
Ravindra Toshniwal, page 4 of the filed PDF · View the filing
Export logistics disruption from West Asia geopolitical crisis delaying garment shipments
p. 6
“the geopolitical uncertainties with the West Asia crisis starting led to temporary export logistic constraints with the customer pickups in shipping being delayed, which resulted in the deferment of certain dispatches and had an impact on our revenue in this quarter.”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
Softer demand in Europe and Middle East for fabric
p. 5
“The demand remained healthy across the United States, the domestic market, while Europe and the Middle East witnessed a relatively softer demand.”
Ravindra Toshniwal, page 5 of the filed PDF · View the filing
Garment goods dispatch delays due to container availability causing margin backlog
p. 8
“Garment because of the goods not being dispatched in time due to the container availability, we had a backlog.”
Ravindra Toshniwal, page 8 of the filed PDF · View the filing
Weak autumn/winter export demand for garments in Q1
p. 10
“And unfortunately, that autumn/winter season has been a little bit weak for us in terms of export demand.”
Shaleen Toshniwal, page 10 of the filed PDF · View the filing
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