RSWM Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year April 1, 2025 to March 31, 2026, in compliance with Regulation 34(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report is filed on a standalone basis and forms part of the company's Integrated Annual Report 2025-26. The report was signed by Surender Gupta, Chief Compliance Officer & Company Secretary, and submitted on August 01, 2026.

Business Overview and Financial Profile

RSWM Limited, formerly Rajasthan Spinning & Weaving Mills Limited, is incorporated with CIN L17115RJ1960PLC008216 and has a paid-up capital of ₹47,10,16,840 (47.10 Crores). The company's total turnover for FY 2025-26 stood at INR 4,553.98 crores, compared to INR 4,825.29 crores in the previous year. Exports accounted for 30.68% of total turnover, with the company serving 68 countries internationally during FY 2025-26. The company's net worth as reported for CSR purposes stood at INR 1,371.65 crores.

The following table summarises the company's primary product/service contribution to turnover:

The company operates 11 national manufacturing plants and 10 offices, with no international facilities. It serves customers across 28 states and 3 Union Territories domestically, and 68 countries internationally.

Workforce and Employee Well-Being

As at the end of FY 2025-26, RSWM Limited employed a total workforce comprising 1,728 employees and 16,390 workers. The gender distribution and composition are detailed below:

The Board of Directors comprised 9 members, of whom 1 (9.09%) is female. No female representation was recorded among Key Management Personnel (other than Board) for the reporting period. The company reported a permanent employee turnover rate of 19.97% in FY 2025-26, compared to 25.12% in FY 2024-25, and a permanent worker turnover rate of 53.55% versus 42.82% in the prior year. Wellbeing spending as a percentage of total revenue stood at 0.14% in FY 2025-26, up from 0.11% in FY 2024-25. All permanent employees received 100% coverage under health insurance, accident insurance, and day care facilities, while maternity benefits were extended to all eligible female permanent employees.

Environmental Performance

RSWM Limited reported notable improvements in its environmental metrics during FY 2025-26. Total energy consumed from renewable sources increased to 789.54 TJ from 524.23 TJ in the previous year, while total energy consumed from non-renewable sources declined to 2,571.44 TJ from 3,500.84 TJ. Overall total energy consumption stood at 3,360.98 TJ compared to 4,025.07 TJ in FY 2024-25.

Scope 1 GHG emissions declined to 1,15,640 metric tonnes of CO2 equivalent in FY 2025-26 from 1,94,290 metric tonnes in FY 2024-25, a reduction of 40.48% year-on-year. Scope 2 emissions decreased to 2,99,590 metric tonnes of CO2 equivalent from 3,33,110 metric tonnes, a reduction of 10.06% year-on-year. Biogenic emissions from biomass combustion, reported separately per GHG Protocol guidance and excluded from Scope 1 totals, were 26,936.24 metric tonnes of CO2 equivalent in FY 2025-26. The GHG inventory was independently prepared by an ISO 14064 certified consultant covering all RSWM facilities.

Total water withdrawal for FY 2025-26 was 18,04,679.44 kiloliters, compared to 18,83,332 kiloliters in FY 2024-25, reflecting a 4.18% year-on-year reduction. The company has implemented Zero Liquid Discharge (ZLD) systems at all applicable wet-processing units, ensuring no external wastewater discharge. Total waste generated in FY 2025-26 was 10,453.49 metric tonnes compared to 7,984.76 metric tonnes in FY 2024-25, with the increase primarily attributed to the scale-up of PET bottle recycling operations at the Ringas plant.

Governance, Ethics, and Compliance

RSWM Limited reported zero monetary penalties, fines, settlements, or compounding fees imposed by any regulatory, law enforcement, or judicial authority during FY 2025-26. No instances of disciplinary action against Directors, KMPs, employees, or workers for bribery or corruption were recorded. The company reported zero data breaches during the year. The Lost Time Injury Frequency Rate (LTIFR) for workers improved to 0.19 in FY 2025-26 from 0.50 in FY 2024-25, while the employee LTIFR remained at 0. Total recordable work-related injuries for workers stood at 9, compared to 19 in the prior year.

The company's accounts payable days stood at 40 in FY 2025-26, compared to 41 in FY 2024-25. Sales to dealers/distributors as a percentage of total sales were 14.18% in FY 2025-26 versus 6% in FY 2024-25. Related party purchases as a percentage of total purchases were 1.34%, and related party sales as a percentage of total sales were 0.43%.

Sustainability Initiatives and CSR

RSWM Limited achieved 100% utilization of its green fibre manufacturing capabilities during FY 2025-26 and commissioned renewable energy procurement from the Adani Group, contributing to a renewable share of electricity at 23.15%. The company has outlined a Net Zero GHG emissions target by FY 2050 and aims to increase the renewable energy share to 30%+ of total electricity consumption by FY 2027. Recycled Polyester Fiber usage in spinning accounted for 58.10% of total input material in FY 2025-26, up from 56.46% in FY 2024-25, while 100% of plastic PET bottles used in recycled fibre manufacturing were recycled inputs.

Under CSR, the company undertook projects in Rajasthan covering food provision, poverty and malnutrition eradication, preventive healthcare, sanitation, safe drinking water, and education and vocational skills. CSR spending in aspirational districts included ₹30.51 lakhs for healthcare and sanitation initiatives and ₹1.75 lakhs for education and livelihood projects. A total of 1,82,500 persons benefitted from healthcare-related CSR projects and 62,600 persons from education-related projects, with 100% of beneficiaries from vulnerable and marginalized groups in both categories. Approximately 43.17% of input materials were sourced directly from MSMEs in FY 2025-26, and 56.83% were sourced from within India.

RSWM Limited , the flagship company of the LNJ Bhilwara Group, has released its Integrated Annual Report for the financial year ended March 31, 2026, marking a decisive turnaround from loss to profit under its RSWM 2.0 transformation framework. The Company reported a Net Profit After Tax of ₹51.98 Crore for FY26, compared to a Loss After Tax of ₹41.28 Crore in FY25, driven by disciplined cost control, strategic asset rationalisation, and a deliberate shift from volume-led to margin-focused operations.

Key Financial Performance — FY26

Despite a 5.6% year-on-year decline in revenue from operations to ₹4,553.98 Crore, the Company delivered meaningful margin expansion across all profitability metrics. The following table summarises the key financial results:

The reported PAT includes a one-time benefit of ₹22.66 Crore arising from the reassessment of deferred tax liabilities following the Company's election of the new concessional corporate tax rate of 25.17% effective FY27 under the Income Tax Act, 2025. Normalised PAT, excluding this tax adjustment, stood at approximately ₹29 Crore.

Other income rose 74.6% to ₹51 Crore, partly reflecting the monetisation of non-core assets. Gross profit improved to ₹1,753 Crore, up 1.4% year-on-year, with gross margin expanding by 246 basis points to 38.1%, supported by better raw material management with costs down 9.6% year-on-year.

RSWM 2.0 — Strategic Pillars Driving the Turnaround

The RSWM 2.0 framework, launched in FY26, rests on four interlocking pillars that guided operational and capital decisions through the year.

1. Cash Conservation and Liquidity Optimisation Working capital costs were held below 9%. Tactical engagement with the repo rate cycle — which compressed from 6.5% to 5.2% — delivered a ₹7 Crore finance cost saving. The ₹36 Crore preferential warrant subscription by the Promoter Group reaffirmed promoter conviction in the strategy.

2. Product and Market Mix Optimisation The conversion of 20,000 spindles at the Kharigram unit from grey to dyed yarn exemplifies the value-addition mandate. Value-added products currently contribute less than 20% of sales, representing significant runway for margin-accretive growth.

3. Forward Integration into Value-Added Segments A ₹92 Crore investment in the Knit division lifts capacity from 750 MT to 900 MT per month, with 120 MT of in-house printing capability added — a segment in which the Company previously had no footprint. European machinery acquired from BAKPL at ₹54 Crore brings energy-efficient equipment into the manufacturing network.

4. Operational Cost Rationalisation and Capital Allocation Discipline Renewable sources now power 70% of total energy consumption, anchored by a 60 MW round-the-clock partnership with Adani Green Energy Solutions and a 9.6 MW behind-the-meter solar installation. All thermal boilers are transitioning from coal to biofuels. The cumulative annualised benefit to the bottom line is estimated at ₹30–40 Crore. Year-on-year power and fuel expenses declined by ₹17.6 Crore.

Strategic Asset Rationalisation

Two pivotal decisions shaped the FY26 operational landscape:

The Company also monetised non-viable spinning machines at the Chhata unit, its thermal power plant and surplus land at Jammu, converting dormant balance-sheet items into deployable capital.

Business Division Performance

The following table summarises key operational metrics across business divisions for FY26:

The Denim Division achieved approximately 100% capacity utilisation against an industry average of approximately 70%, underscoring its operational agility and demand strength. The Synthetic Yarn division developed and sold 1,980 tonnes of specialised yarn variants per month during FY26.

New Growth Engines

LNJ GreenPET at Ratlam: RSWM acquired 100% equity shareholding in LNJ GreenPET Private Limited for a total consideration of ₹20.01 Crore. The subsidiary is setting up a greenfield facility in Ratlam, Madhya Pradesh, at an investment of ₹427 Crore to produce bottle-to-bottle, food-grade recycled PET (rPET) chips and granules using Starlinger European technology, funded through a 70:30 debt-equity structure. The project is expected to generate annual revenue of ₹475–500 Crore at full maturity.

The Ringas facility currently processes nearly 6.5 million PET bottles every day, with recycled polyester contributing 50% of total polyester production, up from less than 10% at inception.

Credit Rating and Corporate Governance

India Ratings & Research (Ind-Ra) revised the Company's outlook from Negative to Stable while affirming its long-term issuer rating at IND A. The Board comprised 11 Directors as at March 31, 2026, including 6 Independent Directors (54.54% of the Board) and 1 Woman Director. Five Board meetings were held during FY26 with 95% attendance.

The Board has not recommended any dividend on equity shares for the year ended March 31, 2026. An amount of ₹801.69 Crore has been carried over to the next year.

Annual General Meeting and Key Ratios

The 65th Annual General Meeting is scheduled for Wednesday, 26th August, 2026 at 2:00 PM via Video Conferencing/Other Audio-Visual Means. The record date for e-voting is 19th August, 2026.

Key financial ratios for FY26 versus FY25 are presented below:

The Company's total contribution to the exchequer in terms of taxes and duties stood at ₹342.60 Crore for FY26. CSR expenditure for the year amounted to ₹32.26 Lakh, directed towards preventive healthcare, safe drinking water and promotion of education.