Raj Rayon Industries reported a 146.4% increase in net profit to ₹3,399.28 lakh for the financial year ended March 31, 2026, compared to ₹1,380.61 lakh in the previous year. Revenue from operations rose 38.9% to ₹117,971.70 lakh from ₹84,937.94 lakh in FY25. The company’s board approved the audited financial results at a meeting held on May 14, 2026.

For the quarter ended March 31, 2026, the company recorded a profit after tax of ₹1,403.21 lakh, compared to ₹1,344.35 lakh in the corresponding period of the previous year. Total income for the quarter stood at ₹29,588.09 lakh. Earnings per share (EPS) for the full year increased to ₹0.61 from ₹0.25 in the previous year.

Qualified Audit Opinion

Bagaria & Co. LLP, the statutory auditors, issued a qualified opinion on the financial results. The qualification arises because the management is in the process of obtaining details for three inoperative bank accounts that have continued since the prior Corporate Insolvency Resolution Process. Consequently, the auditors were unable to comment on the potential impact of pending bank statements on the audited financial results. This qualification has been repetitive for the last three years.

Key Financial Metrics

The following table summarizes the financial performance for the year ended March 31, 2026:

Management Changes and Disclosures

The board accepted the resignation of Mr. Chintan Dharod as Company Secretary and Compliance Officer, effective from the close of business hours on May 14, 2026, due to personal reasons. Concurrently, the board appointed Ms. Ritu Shukla as the new Company Secretary and Compliance Officer effective May 15, 2026.

The company disclosed that it reversed a provision of ₹55 lakhs previously created for non-compliance with the minimum public shareholding requirement, citing an application made to authorities for a waiver. Additionally, the company reported outstanding qualified borrowings of ₹173.52 lakh as on March 31, 2026, with a credit rating of BBB/Stable/IND A3+.

Raj Rayon Industries Limited has announced its audited financial results for the quarter and year ended March 31, 2026, following a Board of Directors meeting held on May 14, 2026. In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company subsequently published its audited financial results as a newspaper advertisement in Free Press Gujarat and Lokmitra on May 31, 2026. The company reported a significant increase in annual net profit and revenue, alongside improved quarterly performance, key management changes, and updated balance sheet disclosures.

Financial Performance

Annual Results

For the financial year ended March 31, 2026, the company reported total income of Rs 1,18,461.74 lakh, compared to Rs 85,413.12 lakh in the previous year. Revenue from operations rose to Rs 1,17,971.70 lakh from Rs 84,937.94 lakh. Net profit for the year climbed to Rs 3,399.28 lakh, up from Rs 1,380.61 lakh in the prior year. Total comprehensive income for the year stood at Rs 3,400.38 lakh, against Rs 1,393.76 lakh previously. Earnings per share (EPS) — basic — increased to Rs 0.61 from Rs 0.25, while diluted EPS rose to Rs 0.42 from Rs 0.17.

Quarterly Results (Q4)

In the quarter ended March 31, 2026, Raj Rayon Industries delivered a year-on-year improvement across key standalone metrics. Net profit rose to Rs 140M from Rs 134M in the corresponding quarter of the prior year. Revenue expanded to Rs 2.95B from Rs 2.1B, reflecting strong top-line growth. EBITDA improved to Rs 161M from Rs 106M, with the EBITDA margin widening to 5.5% from 5.2% on a year-on-year basis.

Balance Sheet Highlights

As at March 31, 2026, total assets stood at Rs 59,830.42 lakh, up from Rs 50,158.62 lakh a year earlier. Total equity increased to Rs 15,647.46 lakh from Rs 12,247.09 lakh, supported by a rise in other equity to Rs 7,586.64 lakh from Rs 4,186.27 lakh. Property, plant and equipment grew to Rs 34,242.23 lakh from Rs 21,241.55 lakh, reflecting completion of capital work-in-progress which declined sharply to Rs 87.38 lakh from Rs 10,145.72 lakh. Inventories rose to Rs 11,809.98 lakh from Rs 10,866.43 lakh, while cash and cash equivalents improved to Rs 1,242.26 lakh from Rs 802.82 lakh.

Cash Flow and Borrowings

Net cash flow from operating activities for the year stood at Rs 11,906.01 lakh, compared to Rs 3,682.27 lakh in the prior year, driven by higher operating profit and increased trade payables. Net cash used in investing activities was Rs 8,301.50 lakh, primarily on account of capital expenditure of Rs 4,779.00 lakh and mutual fund investments of Rs 2,500.00 lakh. Net cash used in financing activities amounted to Rs 3,165.05 lakh. The net increase in cash and cash equivalents for the year was Rs 439.44 lakh.

As per disclosures under SEBI Circular No. SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/172, outstanding qualified borrowings declined to Rs 173.52 crore as on March 31, 2026 from Rs 194.46 crore as on April 1, 2025. Net worth increased to Rs 156.47 crore from Rs 122.47 crore over the same period. The company's highest credit rating remained BBB/Stable/IND A3+.

Management Changes

The board accepted the resignation of Mr. Chintan Dharod from the post of Company Secretary and Compliance Officer, effective from the close of business hours on May 14, 2026, citing personal reasons. Concurrently, the board appointed Ms. Ritu Shukla (Membership No. A63834 of ICSI) as the new Company Secretary and Compliance Officer effective May 15, 2026. Ms. Shukla has prior experience at Bank of Baroda as Assistant Manager and has worked in corporate secretarial and legal roles. She holds no shareholding in the company and is not related to any director.

Auditor's Report and Key Notes

The statutory auditors, Bagaria & Co. LLP, issued an audit report with a modified (qualified) opinion regarding the inability to comment on the impact of three inoperative bank accounts continuing from the pre-Corporate Insolvency Resolution Process period. This qualification is repetitive and has been present for the last three years. The management stated it is in the process of obtaining details from the relevant bankers to ascertain any financial impact, if any. The auditors have agreed with the management's comments.

Notably, other income includes Rs 2.50 crore received from the VAT department in Q2 of FY 2025-26, which was earlier provisioned or written off as an exceptional item in FY 2021-22. The company also reversed a provision of Rs 55 lakh created in earlier quarters for non-compliance with the minimum public shareholding requirement, on the basis that an application has been made to the concerned authorities for its waiver. The company is primarily engaged in the manufacturing and marketing of textile yarns.