RSWM Limited Reports Q2 FY26 Profit Amid Challenging Market Conditions
RSWM Limited, a textile manufacturer, reported a profit of ₹6.28 crore in Q2 FY26, compared to a loss of ₹21.20 crore in Q2 FY25. Despite a slight revenue decline of 1.4% to ₹1,149.95 crore, EBITDA grew by 85.6% to ₹78.77 crore, with the EBITDA margin expanding to 6.8%. The company plans to acquire LNJ Greenpet Private Limited, invest in renewable energy, and has announced the closure of spinning operations at its Chhata unit. The yarn segment remains the primary revenue driver, contributing 79.2% of total revenue.
*this image is generated using AI for illustrative purposes only.
RSWM Limited , a leading textile manufacturer, has reported a profit for the second quarter of fiscal year 2026, demonstrating resilience in the face of challenging market conditions.
Financial Highlights
For the quarter ended September 30, 2025, RSWM Limited reported:
| Metric | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Revenue | 1,149.95 | 1,165.91 | -1.4% |
| EBITDA | 78.77 | 42.43 | +85.6% |
| EBITDA Margin | 6.8% | 3.6% | +318 bps |
| Net Profit | 6.28 | -21.20 | Turnaround to profit |
All financial figures in ₹ Crore, except percentages
Key Performance Factors
Revenue: Despite a slight 1.4% year-on-year decline, RSWM Limited maintained a revenue of ₹1,149.95 crore in Q2 FY26.
Profitability: The company achieved a turnaround, reporting a net profit of ₹6.28 crore compared to a loss of ₹21.20 crore in the same quarter last year.
EBITDA Growth: EBITDA increased by 85.6% year-on-year, reaching ₹78.77 crore, with the EBITDA margin expanding by 318 basis points to 6.8%.
Segment Performance: The yarn segment continued to be the primary revenue driver, contributing 79.2% of the total revenue in Q2 FY26.
Strategic Initiatives
RSWM Limited has undertaken several strategic initiatives to strengthen its market position:
Acquisition Plans: The company plans to acquire a 100% stake in LNJ Greenpet Private Limited for ₹20.01 crore, aiming to integrate bottle-to-bottle recycled PET resin business into its operations.
Renewable Energy Investment: RSWM has entered into agreements with Adani Group companies to secure 60 MW of renewable energy for its operations in Rajasthan, demonstrating a commitment to sustainable practices.
Operational Restructuring: The company announced the closure of spinning operations at its Chhata unit effective November 6, 2025, as part of its ongoing efforts to optimize operations.
Management Commentary
Riju Jhunjhunwala, Chairman & Managing Director and CEO of RSWM Limited, stated, "Our focus on operational efficiency and strategic initiatives has enabled us to deliver a profitable quarter despite market headwinds. The acquisition of LNJ Greenpet and investments in renewable energy align with our long-term vision for sustainable growth."
Outlook
While RSWM Limited faces ongoing challenges in the textile market, the company's improved profitability and strategic moves may position it for potential growth. The management remains cautiously optimistic about future performance, emphasizing continued focus on cost management and value-added products.
Investors and analysts will be watching closely to see if RSWM can build on this quarter's positive momentum in the coming months, particularly in light of global economic uncertainties and evolving market dynamics in the textile industry.
Historical Stock Returns for RSWM
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.57% | -2.58% | +3.93% | +6.61% | -24.81% | +155.02% |
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