RSWM Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript RSWM Ltd filed with BSE on 13 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
RSWM reported Q4 FY26 revenue of ₹1,142 crores, up 4.5% quarter-over-quarter but down 9.1% year-over-year, with EBITDA at ₹85 crores and margin at 7.4%. For full year FY26, revenue was ₹4,554 crores, down 5.6% year-over-year, while EBITDA grew 40.5% to ₹327 crores and the company reported a PAT of ₹52 crores compared to a loss of ₹41 crores in FY25. Management attributed the quarter's performance to gas supply disruptions from the Gulf conflict, U.S. tariffs, and cotton import duty, alongside cost control and product mix optimisation efforts.
Numbers mentioned
Revenue from operations: ₹1,142 crores (Q4 FY26)
p. 6
“revenue from operations stood at ₹1,142 crores, registering quarter-over-quarter growth of 4.5%, while declining 9.1% year-over-year, primarily due to weaker export demand”
Nitin Tulyani, page 6 of the filed PDF · View the filing
Exports revenue: ₹368 crores (Q4 FY26)
p. 6
“Our exports showed a recovery of 11.4% quarter-over-quarter at ₹368 crores, indicating early signs of improvement”
Nitin Tulyani, page 6 of the filed PDF · View the filing
Domestic sales: ₹774 crores (Q4 FY26)
p. 6
“Our domestic sales remain relatively stable at ₹774 crores, reflecting resilience in the domestic market despite overall demand softness”
Nitin Tulyani, page 6 of the filed PDF · View the filing
Power and fuel costs: ₹123.3 crores (Q4 FY26)
p. 6
“Power and fuel costs stood at ₹123.3 crores in Q4, reflecting a sequential decline of ₹4.6 crores from ₹127.9 crores in Q3 FY26”
Nitin Tulyani, page 6 of the filed PDF · View the filing
EBITDA: ₹85 crores (Q4 FY26)
p. 6
“EBITDA stood at ₹85 crores, up 4.3% quarter-over-quarter and 8.5% year-over-year, with margin being stable at 7.4% quarter-over-quarter, and improving by 115 basis points year-over-year”
Nitin Tulyani, page 6 of the filed PDF · View the filing
Revenue from operations: ₹4,554 crores (FY26)
p. 6
“our revenue from operations was ₹4,554 crores, reflecting a year-on-year decline of 5.6%, primarily impacted by the weak demand conditions, particularly in the first half”
Nitin Tulyani, page 6 of the filed PDF · View the filing
Gross profit: ₹1,753 crores (FY26)
p. 7
“Our gross profit improved to ₹1,753 crores, up by 1.4% year-over-year, with the margin expanding to 38.1%, an increase of 246 basis points”
Nitin Tulyani, page 7 of the filed PDF · View the filing
Cost of raw material: ₹2,801 crores (FY26)
p. 7
“The cost of raw material declined 9.5% year-over-year to ₹2,801 crores”
Nitin Tulyani, page 7 of the filed PDF · View the filing
Other income: ₹51 crores (FY26)
p. 7
“Our other income increased significantly to ₹51 crores in FY26, from ₹29 crores in FY25”
Nitin Tulyani, page 7 of the filed PDF · View the filing
Finance cost: ₹123 crores (FY26)
p. 7
“The full-year finance cost for FY26 was ₹123 crores, down from ₹135 crores in FY25”
Nitin Tulyani, page 7 of the filed PDF · View the filing
EBITDA: ₹327 crores (FY26)
p. 7
“The EBITDA stood at ₹327 crores, from ₹233 crores, registering a strong growth of 40.5% year-over-year, with margins improving to 7.1% from 4.8%, an expansion of 231 basis points”
Nitin Tulyani, page 7 of the filed PDF · View the filing
PAT: ₹52 crores (FY26)
p. 7
“Our PAT stood at ₹52 crores, compared to the loss of ₹41 crores last year, with margins improving to 1.1% from being (-0.9%), which clearly reflects a strong turnaround in profitability”
Nitin Tulyani, page 7 of the filed PDF · View the filing
Net worth: ₹1,372 crores (FY26)
p. 7
“our net worth increased to ₹1,372 crores in FY26, from ₹1,308 crores in FY25”
Nitin Tulyani, page 7 of the filed PDF · View the filing
Total borrowing: ₹1,510 crores (FY26)
p. 7
“Total borrowing reduced to ₹1,510 crores from ₹1,621 crores year-over-year, reflecting continued deleveraging and a stable capital structure”
Nitin Tulyani, page 7 of the filed PDF · View the filing
Inventory: ₹620 crores (FY26)
p. 8
“we saw improved working capital efficiency, with inventory reducing to ₹620 crores from ₹730 crores”
Nitin Tulyani, page 8 of the filed PDF · View the filing
Trade receivables: ₹631 crores (FY26)
p. 8
“trade receivables declining to ₹631 crores from ₹696 crores”
Nitin Tulyani, page 8 of the filed PDF · View the filing
PAT impact of deferred tax reversal: ₹23 crores (Q4 FY26)
p. 13
“there is an impact of ₹23 crores for the deferred tax liability, which we reversed”
Nitin Tulyani, page 13 of the filed PDF · View the filing
Knitting business expansion capex: ₹92 crores
p. 14
“we are having ₹92 crores of expansion in our knitting business”
Rajeev Gupta, page 14 of the filed PDF · View the filing
GreenPET (B2B) project total capex: ₹427 crore
p. 16
“this B2B project has a total CAPEX of ₹427 crore, which you already shared with the public domain”
Manoj Bansal, page 16 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.
Mélange yarn utilisation — 85% to 90% · within this quarter or early next quarter
stated as an aspiration by Rajeev Gupta
p. 9
“In mélange yarn, the utilisation is to the tune of 65% to 70%, which we expect to go back to 85% to 90% level, maybe within this quarter or early next quarter”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Denim utilisation — 85% to 90%
stated as an aspiration by Rajeev Gupta
p. 9
“We currently are able to utilise +80%, and we can improve it further to 85% to 90% to optimise our operations”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Knit utilisation — +85% level
stated as an aspiration by Rajeev Gupta
p. 9
“Knit operations were affected more. We were having the utilisation below 80%, which can go to the +85% level”
Rajeev Gupta, page 9 of the filed PDF · View the filing
EBITDA margin — double-digit
stated as an aspiration by Rajeev Gupta
p. 11
“we are more than you are looking forward to seeing double-digit EBITDA at the earliest”
Rajeev Gupta, page 11 of the filed PDF · View the filing
Knitting business EBITDA improvement — 3% to 4% · once expansion implemented in Q3
stated conditionally by Manoj Bansal
p. 16
“once this is in place, we are definitely expecting EBITDA improvement by 3% to 4% in the current levels”
Manoj Bansal, page 16 of the filed PDF · View the filing
GreenPET project operational start — Q1 of next financial year
stated firmly by Manoj Bansal
p. 16
“we want to make it operational next year, the 1st Quarter of the financial year”
Manoj Bansal, page 16 of the filed PDF · View the filing
GreenPET construction start — middle of May
stated firmly by Manoj Bansal
p. 16
“we intend to start towards the middle of May”
Manoj Bansal, page 16 of the filed PDF · View the filing
Power cost reduction from Adani renewable tie-up — ₹1 per unit
stated as an aspiration by Manoj Bansal
p. 19
“we are anticipating the impact of almost ₹1 per unit in the overall reduction”
Manoj Bansal, page 19 of the filed PDF · View the filing
Loan repayment — next 3 to 4 years
stated as an aspiration by Nitin Tulyani
p. 12
“the loans which are there, we are repaying them year-over-year, and hopefully in the next 3 to 4years, our current loan outstanding will be minimised”
Nitin Tulyani, page 12 of the filed PDF · View the filing
RSWM revenue — ₹6,200 to ₹6,500 crore · next three, four years
stated as an aspiration by Rajeev Gupta
p. 17
“Yes, it is possible. The way India is growing, RSWM will not miss out this opportunity”
Rajeev Gupta, page 17 of the filed PDF · View the filing
US order book recovery — another two quarters
stated conditionally by Rajeev Gupta
p. 18
“if everything goes well, I think another two quarters, things should be back to normalcy”
Rajeev Gupta, page 18 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 said utilisation in denim, knit and mélange businesses should improve in coming quarters, aided by normalisation of gas costs and internal efficiencies.
Answered by Rajeev Gupta
Asked by Saket Kapoor: What will drive improved profitability and how are utilisation levels currently trending?
p. 9
“So, I think in all three businesses, there is a potential to improve utilisation between 7% to 10% in the coming quarters against the utilisation level in Quarter 4”
Rajeev Gupta, page 9 of the filed PDF · View the filing
Management said gas availability improved in April but costs rose significantly and may remain elevated until the Gulf situation normalises.
Answered by Rajeev Gupta
Asked by Saket Kapoor: Has gas availability normalised post-March and what happened to cost?
p. 10
“in April, availability of gas is there, but the cost has significantly gone for upward revision”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Management said Chhata spinning operations were curtailed due to inefficiency and no further closures are planned for now.
Answered by Rajeev Gupta
Asked by Ruben: What percentage of the spinning division is structurally unviable at current spreads and what are the plans?
p. 11
“Operations of Chhata spinning were curtailed, which was having inefficient production, and we were not able to clock the required margins there”
Rajeev Gupta, page 11 of the filed PDF · View the filing
Management quantified the impact and said PAT would have been lower without the tax regime change.
Answered by Nitin Tulyani
Asked by Rishabh Sharma: What is the PAT impact of the deferred tax reversal in Q4?
p. 13
“If we had opted for the existing income tax rates, we would have closed the PAT at ₹29 crores”
Nitin Tulyani, page 13 of the filed PDF · View the filing
Management attributed the decline to the Chhata closure and a tough export environment from U.S. tariffs.
Answered by Rajeev Gupta
Asked by Rishabh Sharma: Is the revenue decline due to market share loss or demand weakness?
p. 13
“this revenue decrease is on two fronts. One is that we closed Chhata operations”
Rajeev Gupta, page 13 of the filed PDF · View the filing
Management said the turnaround was largely internal, driven by product mix optimisation and working capital improvements.
Answered by Rajeev Gupta
Asked by Rohit Ohri: How much of the recovery is attributable to product mix versus other factors?
p. 14
“the turnaround which we are seeing is more because of internal operations than market-led”
Rajeev Gupta, page 14 of the filed PDF · View the filing
Management said recovery is underway but product development impact from the disruption is still being felt.
Answered by Rajeev Gupta
Asked by Nihar: Has the US order book fully recovered after the tariff settlement?
p. 18
“I will say that it is under recovery”
Rajeev Gupta, page 18 of the filed PDF · View the filing
Management explained the difference is due to a wind energy subsidiary and quantified the expected per-unit power savings from the Adani tie-up.
Answered by Nitin Tulyani
Asked by Pramod: Why is standalone power cost different from consolidated, and what is the expected power cost reduction from renewable investment?
p. 18
“we have another entity called BG Wind Private Limited, which is primarily for the wind energy”
Nitin Tulyani, page 18 of the filed PDF · View the filing
Management confirmed a 70-30 debt-equity structure for the ₹427 crore project.
Answered by Nitin Tulyani
Asked by Ruben: Is the GreenPET project being funded mostly through debt rather than equity?
p. 20
“the total project cost is ₹427 crores, out of which we have raised almost 70% of the amount by way of project financing”
Nitin Tulyani, page 20 of the filed PDF · View the filing
Risks flagged
Gas availability disruption due to Gulf conflict affecting denim division production
p. 4
“RSWM is also impacted because of this disruption of gas, especially our denim division, which has suffered production for some days during the month of March”
Rajeev Gupta, page 4 of the filed PDF · View the filing
U.S. tariffs impacting exports
p. 4
“U.S. tariffs is a concern which all of us know”
Rajeev Gupta, page 4 of the filed PDF · View the filing
Removal of RoDTEP export incentive for part of the year
p. 4
“RoDTEP was taken off for part of the year”
Rajeev Gupta, page 4 of the filed PDF · View the filing
Import duty on cotton during the quarter
p. 4
“Import duty on cotton was there for most part of this quarter”
Rajeev Gupta, page 4 of the filed PDF · View the filing
Volatility in raw material and input costs including dyes, chemicals and freight
p. 4
“The impact has been visible in terms of volatility in the key raw material costs and has also significantly increased the other cost components, like dyes and chemical costs, freight costs, impacting the overall cost structure of all textile products”
Rajeev Gupta, page 4 of the filed PDF · View the filing
Lag between cost increases and ability to pass on price increases in denim business
p. 10
“there is a lag between the cost increase and the price increase. To that extent, you always suffer, and sometimes it is not possible to increase all costs to the final product”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Rising gas costs even as availability normalises
p. 10
“Till the time things normalise in the Gulf, so this cost may still continue to be an issue with us”
Rajeev Gupta, page 10 of the filed PDF · View the filing
Cautious discretionary spending in Western markets affecting demand
p. 4
“Discretionary spending, especially in Western countries, continues to be cautious, which is impacting overall demand”
Rajeev Gupta, page 4 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.