RSWM Strengthens Profitability with 42% EBITDA Growth in Q3 FY26
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RSWM Ltd., one of India’s leading manufacturers of value-added synthetic, mélange, cotton and blended yarns, denim fabric, knitted fabric and green polyester fibre, has reported its unaudited financial results for the third quarter and nine months ended December 31, 2025, delivering a performance that underscores operational discipline despite a challenging global textile environment.

For Q3 FY26, the company reported revenue of ₹1,093 crore, slightly lower than ₹1,150 crore in the previous quarter, reflecting softer demand conditions. For the nine-month period, revenue stood at ₹3,412 crore compared to ₹3,569 crore in the corresponding period last year. While topline growth moderated, profitability metrics showed notable improvement, highlighting a strategic shift toward better margins and improved earnings quality.

Gross profit for Q3 FY26 rose to ₹434 crore, with gross margins expanding to 39.2 per cent up 78 basis points quarter-on-quarter and 310 basis points year-on-year. The gains were driven by a favourable product mix and enhanced operating efficiencies. For the nine months, gross profit reached ₹1,319 crore, with margins improving 217 basis points year-on-year to 38.3 per cent.

EBITDA for the quarter stood at ₹82 crore, marking a strong 41.7 per cent year-on-year growth. EBITDA margins improved to 7.4 per cent, up 260 basis points compared to last year. For the nine-month period, EBITDA increased significantly to ₹242 crore from ₹154 crore a year earlier, with margins at 7.0 percent.

Profit after tax (PAT) for Q3 FY26 remained positive at ₹4 crore, despite a one-time exceptional labour-related service cost during the quarter. For the nine months, PAT improved to ₹17 crore, representing a turnaround from a loss in the corresponding period of FY25.

Commenting on the results, Chairman & Managing Director and CEO Mr. Riju Jhunjhunwala highlighted the company’s operational resilience amid geopolitical pressures and cautious global sourcing trends. He noted that RSWM’s emphasis on differentiated products, cost governance and manufacturing efficiency reflects a deliberate effort to enhance earnings predictability and reduce cyclical volatility.

He also pointed to the India–EU Free Trade Agreement as a structural positive for the sector. While tariff reductions could improve competitiveness, compliance with stringent EU norms on sustainability and traceability may favour organised, integrated players like RSWM. The company’s focus on circularity, renewable energy adoption and responsible resource management signals a long-term sustainability-led growth strategy aimed at strengthening stakeholder value in the years ahead.

03:55 PM, Feb 12

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