Raj Rayon Industries has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026, to the Bombay Stock Exchange and the National Stock Exchange of India. The filing, made pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, outlines the company’s operational performance, governance structures, and environmental impact for FY26.

The company reported a total turnover of ₹11,797.17 crore for the period, marking a significant increase from the previous year's figure of ₹8,493.79 crore. This growth reflects the scaling up of its manufacturing operations, which are primarily focused on polyester chips, partially oriented yarn (POY), and polyester texturised yarn (PTY). POY manufacturing alone contributed 68.66% to the total turnover.

Operational and Workforce Metrics

As of the end of FY26, Raj Rayon employed 244 permanent employees and 168 permanent workers at its single plant location in Silvassa, Dadra and Nagar Haveli and Daman and Diu. The workforce composition remains heavily male-dominated, with 93.85% of employees being male.

The report discloses a high turnover rate for permanent workers, which stood at 83% in FY26, up from 20% in FY25. In contrast, the turnover rate for permanent employees was 26%, compared to 5% in the prior year. The company noted that it has recently initiated production in its factory unit and is in the process of implementing comprehensive well-being measures for its workforce.

Environmental Disclosures

Under Principle 6, the company detailed its energy and water consumption patterns. Total electricity consumption surged to 94,771,463 Giga Joules in FY26, a substantial rise from 222,192 Giga Joules in FY25. Fuel consumption was reported as zero for FY26, whereas it stood at 257,530 Giga Joules in the previous year.

Water withdrawal increased to 319,375 kilolitres in FY26 from 263,895 kilolitres in FY25, primarily sourced from groundwater (292,000 kilolitres) and third-party sources (27,375 kilolitres). The company stated that it recycles all used water after treatment for plantation activities and maintains rainwater harvesting systems to replenish groundwater levels. No water discharge was reported for either year.

What the Numbers Show

A notable divergence exists between the reported revenue growth and the absolute scale of energy consumption disclosed in the report. While revenue grew by approximately 39% year-on-year, the reported electricity consumption figure jumped by over 42,000% in absolute Giga Joule terms. This massive discrepancy in magnitude suggests a potential change in reporting methodology or unit classification between FY25 and FY26, as the previous year's fuel consumption was also recorded in Giga Joules but at a much lower absolute value.

Governance and Social Responsibility

The company confirmed compliance with CSR norms under Section 135 of the Companies Act, 2013, citing a net worth of ₹156.47 crore. It reported zero complaints related to human rights, sexual harassment, or discrimination during the year. Training on human rights covered 22.54% of permanent employees and 8.93% of permanent workers. The Board of Directors includes two women, representing 33.33% of the total board strength.

Raj Rayon Industries has scheduled its 33rd Annual General Meeting for September 30, 2026, to transact business including the adoption of audited financial statements for FY26 and the ratification of significant related-party transactions. The meeting will be held via video conferencing or other audio-visual means.

Related-Party Transaction Limits

The most material item on the agenda involves seeking shareholder approval for related-party transactions with six entities controlled by promoters and directors. The Board proposes limits for the period from October 1, 2026, to September 30, 2027.

SVG Fashions Private Limited, the holding company, accounts for the vast majority of this exposure with a proposed transaction limit of ₹900 crore. This figure represents 20.11% of Raj Rayon’s annual consolidated turnover based on FY25-26 data. The remaining five entities have significantly lower limits, ranging from ₹5 crore to ₹10 crore.

These transactions involve internal purchases, sales of goods, job work, corporate guarantees, and inter-corporate deposits. The Audit Committee has approved these arrangements on an arm’s length basis, citing industrial standards for pricing and government/bank rates for financial instruments.

Director Re-appointment

Ms. Sapna Rajkumar Agarwal, a non-executive woman director, retires by rotation and offers herself for re-appointment. She holds a Bachelor of Commerce degree and has expertise in the fashion industry. Ms. Agarwal attended four Board meetings during the year and holds 35,00,000 shares (0.63%) of the company. She is also a director in SVG Fashions Private Limited.

Cost Auditor Ratification

Shareholders will also ratify the remuneration of M/s. C. Sahoo & Co. as Cost Auditors for FY27. The approved fee is ₹1,00,000 plus out-of-pocket expenses and applicable taxes.

What the Numbers Show

The concentration of related-party exposure is heavily skewed toward the holding company. While the total proposed transaction value across all six entities is substantial, ₹900 crore with SVG Fashions alone constitutes nearly 96% of the total proposed limit of approximately ₹930 crore. This indicates a deep operational and financial dependency on the promoter group for the coming fiscal year.