Banswara Syntex FY26 net profit rises 32.8% to ₹2,840.20 lakh

Banswara Syntex reported a 32.8% rise in net profit to ₹2,840.20 lakh for the financial year ended March 31, 2026, compared to ₹2,139.11 lakh in the previous year. Revenue from operations for the year increased 5% to ₹1,35,578.44 lakh from ₹1,29,169.62 lakh in FY25. For the quarter ended March 31, 2026, the company recorded a net profit of ₹959.78 lakh, a significant increase from ₹512.86 lakh in the corresponding period of the previous year.

The Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The statutory auditors, M/s. K.G. Somani & Co. LLP, issued an unmodified opinion on the financial results. The company recognized an exceptional item of ₹891.38 lakh during the year, primarily due to the reassessment of employee benefit obligations following the implementation of new Labour Codes effective November 21, 2025.

Financial Performance

The company’s total income for FY26 stood at ₹1,36,967.42 lakh, up from ₹1,30,746.63 lakh in the previous year. Total expenses for the year increased to ₹1,32,180.19 lakh from ₹1,27,773.93 lakh. Earnings per share (EPS) for the year improved to ₹8.30 from ₹6.25 in the prior year. On a consolidated basis, net profit for the year rose to ₹3,120.05 lakh from ₹2,215.59 lakh in FY25.

Metric	FY26 (₹ in Lakhs)	FY25 (₹ in Lakhs)
Revenue from Operations	1,35,578.44	1,29,169.62
Total Income	1,36,967.42	1,30,746.63
Total Expenses	1,32,180.19	1,27,773.93
Net Profit	2,840.20	2,139.11
EPS (Basic)	8.30	6.25

Dividend and Appointments

The Board recommended a final dividend of ₹1 per equity share of ₹5 each for the financial year ended March 31, 2026, subject to the approval of members at the ensuing Annual General Meeting. If approved, the dividend will result in a cash outflow of ₹342.32 lakh.

In governance matters, the Board approved the re-appointment of M/s. Ankit Maheshwari & Associates as Chief Internal Auditor and M/s. K.G. Goyal & Company as Cost Auditor for FY 2026-27. The company also re-appointed three whole-time directors—Mr. Rakesh Mehra, Mr. Ravindrakumar Toshniwal, and Mr. Shaleen Toshniwal—for a period of three years effective January 1, 2027. Additionally, Mr. Udeypaul Singh Gill was appointed as an Additional Director in the category of Non-Executive Independent Director for a term of five years effective May 20, 2026.

Other Key Decisions

Banswara Syntex approved changing its Registrar to an Issue and Share Transfer Agent (RTA) from M/s. Computech Sharecap Limited to M/s. Bigshare Services Private Limited. The existing RTA will continue to serve until the completion of data transition and other related procedures. The company also announced the resignation of Mr. Ketan Kumar Dave from the position of Company Secretary cum Compliance Officer effective May 19, 2026. Consequently, the trading window for directors and designated persons will open from May 22, 2026.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.76%	+3.76%	+2.73%	+10.69%	-14.09%	+40.20%

Banswara Syntex has announced its audited financial results for the year ended March 31, 2026. The company reported a standalone net profit of ₹28.40 crore for FY26, marking a 33% increase from ₹21.40 crore in the previous year. Total income for the year rose to ₹1,369.70 crore from ₹1,307.50 crore in FY25. The Board of Directors has recommended a final dividend of Re. 1 per equity share of ₹5 each for the financial year ended March 31, 2026, subject to shareholder approval. Additionally, the audio recording of the earnings conference call held on May 20, 2026, to discuss the Q4 and FY26 results has been made available on the company's website.

Financial Performance

For the full year, the company recorded an EBITDA of ₹143.60 crore, up 22.5% year-on-year, with an EBITDA margin of 10.5%. Profit before tax for the year stood at ₹39.00 crore. The company recognized an exceptional expense of ₹8.90 crore during the year related to the reassessment of employee benefit obligations following the implementation of new Labour Codes. In Q4 FY26, PAT increased 87.1% YoY to ₹9.60 crore, while Total Income grew 6.6% to ₹369.30 crore.

Metric	Year Ended 31-Mar-26 (₹ in Crs)	Year Ended 31-Mar-25 (₹ in Crs)
Total Income	1,369.70	1,307.50
Total Expenses	1,321.80	1,277.70
EBITDA	143.60	117.20
Net Profit	28.40	21.40
Earnings Per Share (Basic)	8.30	6.25

Segment Performance

The Yarn Division reported a revenue of ₹449 crore for FY26, a decline of 2% YoY, impacted by labour shortages and lower capacity utilization at 77%. The Fabric Division achieved a revenue of ₹569 crore, growing 5% YoY, driven by improving demand trends in the US market. The Garment Division was the standout performer, with revenue surging 18% YoY to ₹324 crore, supported by a healthy order book and capacity utilization improving to 72%.

Division	FY26 Revenue (₹ in Crs)	YoY Growth	Capacity Utilization (FY26)
Yarn	449	-2%	77%
Fabric	569	5%	76%
Garment	324	18%	72%

Balance Sheet and Outlook

The net debt increased by ₹27 crore to ₹483 crore as on March 31, 2026, primarily due to ongoing capex and working capital requirements. The overall debt-equity ratio stood at 0.8x. For FY27, the company targets a revenue range of ₹1,450–1,500 crore. Management aims to increase the revenue contribution from the Fabric and Garment segments from 63% in FY25 to 69% in FY27 to maintain margins. The company expects EBITDA margins to remain between 10.5% and 11% over the medium term.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE629D01020/604c135f-f24b-4e84-b905-2e6ea2e018f9.pdf