Banswara Syntex Ltd-$ — Q4 FY26 earnings call
Summary generated by AI from the official transcript Banswara Syntex Ltd-$ filed with BSE on 26 May 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 FY26 total income of approximately INR1,370 crores with EBITDA growth of 22.5% to about INR144 crores and PAT growth of 32.8% to INR28.4 crores, despite labor shortages in the Yarn division and geopolitical disruptions affecting the Middle East business. The Garment division was a standout, with quarter four revenue up 40% year-on-year to INR96 crores helped by new business from Walmart, while Fabric revenue reached a record INR569 crores for the year. Management guided to FY27 revenue of INR1,450 crores to INR1,500 crores with EBITDA margins expected between 10.5% and 11% over the medium-term.
Numbers mentioned
Yarn revenue: INR113 crores (Q4 FY26)
p. 3
“Our Yarn revenue stood at INR113 crores in quarter four FY26 as compared to INR123 crores”
Ravindra Toshniwal, page 3 of the filed PDF · View the filing
Yarn revenue: INR449 crores (FY26)
p. 4
“while FY26 revenues stood at INR449 crores versus INR460 crores in FY 2025”
Ravindra Toshniwal, page 4 of the filed PDF · View the filing
Fabric revenue: INR154 crores (Q4 FY26)
p. 4
“Our Fabric revenues stood at INR154 crores in quarter four FY26 as compared to INR145 crores in quarter four FY 2025”
Ravindra Toshniwal, page 4 of the filed PDF · View the filing
Fabric revenue: INR569 crores (FY26)
p. 4
“the FY26 revenues increased year-on-year by 5% to a record of INR569 crores in spite of all of the headwinds”
Ravindra Toshniwal, page 4 of the filed PDF · View the filing
Garment revenue: INR96 crores (Q4 FY26)
p. 5
“The Garment revenues increased in the last quarter by 40% to INR96 crores”
Ravindra Toshniwal, page 5 of the filed PDF · View the filing
Garment revenue: INR324 crores (FY26)
p. 5
“and for the entire FY26, the revenues increased by 18% to INR324 crores”
Ravindra Toshniwal, page 5 of the filed PDF · View the filing
Total income: approximately INR1,370 crores (FY26)
p. 5
“For FY26, the company reported total income of approximately INR1,370 crores”
Ravindra Toshniwal, page 5 of the filed PDF · View the filing
EBITDA: approximately INR144 crores (FY26)
p. 6
“During FY26, our EBITDA stood at approximately INR144 crores with a year-on-year growth of 22.5%, translating into the EBITDA margin of around almost 11%”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
PAT: INR28.4 crores (FY26)
p. 6
“the company reported a robust PAT of INR28.4 crores for FY26, registering a healthy year-on-year growth of 32.8%”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
Total income: INR369.3 crores (Q4 FY26)
p. 6
“For quarter four FY26, the company reported a total income of INR369.3 crores with EBITDA increasing 46% year-on-year to INR46 crores”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
PAT: INR9.6 crores (Q4 FY26)
p. 6
“PAT for the quarter stood at INR9.6 crores, reflecting a strong year-on-year growth of 87%”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
Net debt: INR483 crores (as on 31st March 2026)
p. 6
“The net debt as on 31st March, 2026 stood at INR483 crores as compared to INR456 crores as on 31st March”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
Debt-to-equity ratio: 0.8 times (as on 31st March 2026)
p. 6
“The overall debt-to-equity ratio remains comfortable at 0.8 times as on 31st March 2026”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
Dividend: 20% on face value, INR3.42 crores total payout (FY26)
p. 3
“the Board of Directors has again recommended a dividend of 20% on face value, translating into a total payout of INR3.42 crores to the shareholders”
Ravindra Toshniwal, page 3 of the filed PDF · View the filing
Fabric and Garment revenue contribution: 66% (FY26)
p. 5
“Fabric and Garment divisions contributing 66% of the revenue in FY26 as compared to 63% in FY 2025”
Ravindra Toshniwal, page 5 of the filed PDF · View the filing
Exceptional expense: about INR9 crores (FY26)
p. 6
“The company also recognized a one-time exceptional expense of about INR9 crores related to the implementation of the new labor code law”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
Tesca Textiles turnover: about INR100 crores (FY26)
p. 12
“The turnover there was about INR100 crores. And on INR100 crores, we earned almost a INR10 crores PAT”
Ravindra Toshniwal, page 12 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.
Revenue — INR1,450 crores to INR1,500 crores · FY27
stated firmly by Ravindra Toshniwal
p. 6
“we remain optimistic about the company's growth trajectory and expect revenues between the range of INR1,450 crores to INR1,500 crores in FY 2027, this in spite of all of the headwinds”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
EBITDA margin — 10.5% to 11% · medium-term
stated as an aspiration by Ravindra Toshniwal
p. 6
“At the EBITDA level, we expect margins to remain between the range of 10.5% to 11% over the medium-term”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
Fabric and Garment revenue contribution — nearly 70% · medium-term
stated as an aspiration by Ravindra Toshniwal
p. 6
“Our strategic objective remains to further increase our contribution from the Fabric and Garment business to nearly 70% over the medium-term”
Ravindra Toshniwal, page 6 of the filed PDF · View the filing
Garment business growth — another 20% · next year
stated as an aspiration by Ravindra Toshniwal
p. 8
“let's just say that our target to grow in the next year in the Garment business is another 20%”
Ravindra Toshniwal, page 8 of the filed PDF · View the filing
Fabric business growth — another 20% · next year
stated as an aspiration by Ravindra Toshniwal
p. 8
“we are also targeting growth in the Fabric business next year to the extent of another 20%”
Ravindra Toshniwal, page 8 of the filed PDF · View the filing
Capex — INR135 crores to INR140 crores · FY27
stated firmly by Kavita Gandhi
p. 13
“The capex has been planned around INR135 crores to INR140 crores”
Kavita Gandhi, page 13 of the filed PDF · View the filing
Garment capex — INR3 crores to INR5 crores · FY27
stated conditionally by Kavita Gandhi
p. 13
“Garmenting will be as per the current before expansion, what Ravi ji explained some time back, it will be in the range of around INR3 crores to INR5 crores”
Kavita Gandhi, page 13 of the filed PDF · View the filing
Long-term debt — FY28 onwards
stated firmly by Kavita Gandhi
p. 11
“from FY 2028 onwards, you will see a reduction happening in the long-term”
Kavita Gandhi, page 11 of the filed PDF · View the filing
Garment division growth — 18% to 20% · next year
stated as an aspiration by Kavita Gandhi
p. 16
“Next year, we are projecting the Garment division is projecting around 18% to 20% growth”
Kavita Gandhi, page 16 of the filed PDF · View the filing
Revenue capacity of Garment setup — close to INR400 crores
stated as an aspiration by Ravindra Toshniwal
p. 16
“Revenue capacity could be even INR450 crores, but we are targeting that we'll get to close to INR400 crores”
Ravindra Toshniwal, page 16 of the filed PDF · View the filing
Revenue — INR2,000 crores
stated as an aspiration by Ravindra Toshniwal
p. 17
“I'm aware that we have the capacity, and we have said in the past that we'll get to INR2,000 crores without any significant capex, and I maintain that”
Ravindra Toshniwal, page 17 of the filed PDF · View the filing
Garment orders and demand — from second quarter onwards
stated conditionally by Ravindra Toshniwal
p. 5
“While quarter one may remain relatively subdued, we do expect business momentum to improve progressively in the Garment business from the second quarter onwards”
Ravindra Toshniwal, page 5 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.
Walmart was a new addition contributing about INR15 crores of the quarter's growth, alongside existing customers like JC Penney and Mango.
Answered by Ravindra Toshniwal
Asked by Akshay Ajmera: Have new customers such as Walmart or JC Penney been added in export business?
p. 7
“Walmart has been definitely a new addition, and we saw the impact of that happening in our quarter four results in the Garment division, where we achieved INR96 crores turnover.”
Ravindra Toshniwal, page 7 of the filed PDF · View the filing
Management explained the shift to finer counts and higher-value products like Siro Compact Yarn reduces production volume even as installed capacity value rises.
Answered by Ravindra Toshniwal
Asked by Dhruv Talajia: Why has installed capacity declined year-on-year despite investment?
p. 9
“So, we have moved our product mix. Like we said, we have made Siro Compact Yarn, and we've gone up to a capacity of about 200 tons per month in Siro Compact, which is a low production yarn.”
Ravindra Toshniwal, page 9 of the filed PDF · View the filing
CFO said no reduction is expected this year due to planned capex, with long-term debt reduction beginning FY28.
Answered by Kavita Gandhi
Asked by Garvita Jain: How does the company plan to reduce debt?
p. 11
“there will not be a reduction. You will see some high in long term FY2027 due to planned capex on that. But from FY 2028 onwards, you will see a reduction happening in the long-term.”
Kavita Gandhi, page 11 of the filed PDF · View the filing
Management said segmental EBITDA is not meaningful due to significant internal transfers between yarn, fabric and garment divisions.
Answered by Ravindra Toshniwal
Asked by Runit Kapoor: What is the EBITDA for the garmenting segment specifically?
p. 12
“Almost 80% of the fabric we use in our Garment division is made using our own yarn and our own fabric.”
Ravindra Toshniwal, page 12 of the filed PDF · View the filing
Tesca performed well with INR100 crores turnover and INR10 crores PAT, but the company does not plan to increase its 40% stake as partners prefer not to dilute.
Answered by Ravindra Toshniwal
Asked by Runit Kapoor: What is the update on Tesca Textiles and plans to increase stake?
p. 12
“Now, we do not yet plan to increase our stake in it. The partners we have are both French and Korean, and they would not like to dilute their stake.”
Ravindra Toshniwal, page 12 of the filed PDF · View the filing
Management said polyester raw material costs rose about 25% due to the Middle East situation, with only partial pass-through so far, and demand from the region has weakened.
Answered by Ravindra Toshniwal
Asked by Akshay Satija: What is the impact of the Middle East conflict on raw material prices and demand?
p. 13
“the whole Middle East scenario has increased raw material costs for polyester because it is based on petrochemical. And that is an increase which is almost about 25% on the raw material front.”
Ravindra Toshniwal, page 13 of the filed PDF · View the filing
Management expects the UK FTA to start around September and the EU deal to be finalized by December end, though timing is uncertain.
Answered by Ravindra Toshniwal
Asked by Akshay Satija: When will FTAs with UK and EU materially benefit the business?
p. 15
“The U.K. is expected to start, I think, by September, when it happens, it will happen. And the European Union has said that they will finalize by December end”
Ravindra Toshniwal, page 15 of the filed PDF · View the filing
Management estimated potential revenue capacity of INR450 crores versus a target closer to INR400 crores.
Answered by Ravindra Toshniwal
Asked by Nirbhay Mahawar: What revenue capacity exists if demand were not a constraint, including Surat?
p. 16
“Revenue capacity could be even INR450 crores, but we are targeting that we'll get to close to INR400 crores.”
Ravindra Toshniwal, page 16 of the filed PDF · View the filing
Management said it is too early to give a definitive timeline given geopolitical and labor uncertainties, though it maintains the capacity exists.
Answered by Ravindra Toshniwal
Asked by Nirbhay Mahawar: When can the company reach INR2,000 crores in revenue?
p. 17
“It’s a very difficult question to answer at this particular time in the global geopolitical scenario. So, let's give this a break until the next quarter and then maybe we can address this better.”
Ravindra Toshniwal, page 17 of the filed PDF · View the filing
Management said pass-through typically takes six months to a year due to retailers fixing seasonal prices in advance.
Answered by Ravindra Toshniwal
Asked by Mohammed Murtaza: How quickly can wool price increases be passed on to customers?
p. 18
“normally, it takes at least six months before a customer is even willing to entertain a new price. Sometimes it takes up to one year”
Ravindra Toshniwal, page 18 of the filed PDF · View the filing
Management said the brand is growing slowly with monthly sales around INR15 lakhs and is not being aggressively funded yet.
Answered by Ravindra Toshniwal
Asked by Mohammed Murtaza: What is the status of the One Mile D2C brand?
p. 18
“I think that the average sales is now at about INR15 lakhs per month, no more.”
Ravindra Toshniwal, page 18 of the filed PDF · View the filing
Risks flagged
Labor shortages impacting capacity utilization in spinning
p. 4
“Lower utilization levels during the quarter were primarily due to the labor shortages, particularly in spinning and these challenges have continued to persist during the initial phase of quarter one FY 2027.”
Ravindra Toshniwal, page 4 of the filed PDF · View the filing
Geopolitical conflict in the Middle East disrupting shipping and raw material costs
p. 3
“The continued conflict in the Middle East has impacted key shipping routes and global logistics networks, resulting in longer transit timelines, higher freight costs, and cargo insurance costs”
Ravindra Toshniwal, page 3 of the filed PDF · View the filing
Rising wool, polyester and energy input costs pressuring margins
p. 4
“We also did face sharp increases in the wool fiber prices, the polyester fiber prices, chemical dyestuffs, and the energy cost, which have, to some extent, impacted the margin.”
Ravindra Toshniwal, page 4 of the filed PDF · View the filing
Reduced near-term demand visibility in Garment orders from retail brand caution
p. 5
“Recent geopolitical developments and elevated raw material costs have impacted just the near-term demand visibility, particularly in quarter one FY 2027 in our Garment orders.”
Ravindra Toshniwal, page 5 of the filed PDF · View the filing
Shipments to Middle East delayed causing lost revenue and profitability
p. 14
“In quarter four, we had product about INR8 crores or INR9 crores, which would have added to our top line and helped our profitability more that could not be shipped because customers didn't accept it in time.”
Ravindra Toshniwal, page 14 of the filed PDF · View the filing
Reduced sales expected to Middle East due to sluggish demand
p. 14
“So, we expect maybe about INR10 crores, INR20 crores reduction could happen.”
Ravindra Toshniwal, page 14 of the filed PDF · View the filing
Labor constraint limiting ability to scale up garment production
p. 17
“Because again, in the Garment division, labor is also a big constraint. And when we ramp-up, even though the capex is available, if you do not have a steady supply of orders throughout the year and the labor goes away during a particular period and doesn't come back for a while, then you lose that momentum.”
Ravindra Toshniwal, page 17 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.