Rainbow Denim Limited Reports Strong Q3FY26 Performance with 80% Revenue Growth
Rainbow Denim Limited reported exceptional Q3FY26 results with revenue from operations surging 79.76% YoY to ₹6,508.11 lacs and net profit jumping to ₹681.52 lacs from ₹214.74 lacs in Q3FY25. The nine-month performance was equally impressive, with revenue reaching ₹20,207.11 lacs compared to ₹9,784.58 lacs in the previous year, while net profit increased to ₹1,855.79 lacs from ₹529.02 lacs. The Board approved these results on February 5, 2026, demonstrating the textile trading company's strong operational efficiency and market positioning.
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Rainbow Denim Limited has delivered impressive financial performance for the third quarter of FY26, demonstrating strong operational efficiency and market positioning. The textile trading company's results for the quarter ended December 31, 2025, reflect substantial growth across revenue and profitability metrics, indicating robust business momentum.
Quarterly Financial Performance
The company's Q3FY26 results showcase remarkable year-on-year improvement across key financial indicators. Revenue from operations experienced significant growth, while profitability metrics demonstrated the company's enhanced operational efficiency.
| Financial Metric: | Q3FY26 | Q3FY25 | Growth (%) |
|---|---|---|---|
| Revenue from Operations: | ₹6,508.11 lacs | ₹3,621.20 lacs | +79.76% |
| Total Revenue: | ₹6,517.64 lacs | ₹3,621.20 lacs | +80.01% |
| Net Profit: | ₹681.52 lacs | ₹214.74 lacs | +217.33% |
| Basic EPS: | ₹5.13 | ₹0.16 | +3,106.25% |
Nine-Month Performance Analysis
The company's nine-month performance for the period ended December 31, 2025, further reinforces its strong market position and operational capabilities. The extended period results demonstrate consistent growth trajectory and improved financial health.
| Parameter: | 9M FY26 | 9M FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations: | ₹20,207.11 lacs | ₹9,784.58 lacs | +106.53% |
| Total Revenue: | ₹20,217.90 lacs | ₹9,784.84 lacs | +106.64% |
| Net Profit: | ₹1,855.79 lacs | ₹529.02 lacs | +250.78% |
| Basic EPS: | ₹13.97 | ₹0.40 | +3,392.50% |
Cost Management and Operational Efficiency
Rainbow Denim Limited demonstrated effective cost management during Q3FY26, with total expenses amounting to ₹5,836.12 lacs compared to ₹3,406.46 lacs in Q3FY25. The company's cost structure reflects its expanded operations, with cost of material consumed at ₹4,715.46 lacs and purchase of stock-in-trade at ₹816.79 lacs. Employee benefit expenses stood at ₹295.73 lacs, while finance costs were ₹299.36 lacs for the quarter.
Corporate Governance and Compliance
The Board of Directors convened on February 5, 2026, to review and approve the unaudited financial results for Q3FY26. The meeting, which commenced at 1:30 PM and concluded at 2:00 PM, considered and approved the financial statements as required under Regulation 33 of SEBI Listing Regulations. The company's statutory auditors, Krishan Rakesh & Co., provided their limited review report confirming compliance with applicable accounting standards.
Business Operations and Segment Focus
Rainbow Denim Limited operates primarily in textile products trading and maintains a single reporting segment structure. The company's paid-up equity share capital remains at ₹1,328.37 lacs with a face value of ₹10 per share. The financial results have been prepared in accordance with Indian Accounting Standards (Ind-AS) and reflect the company's commitment to transparent financial reporting and regulatory compliance.
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