RSWM Limited , a leading textile manufacturer, has reported a significant turnaround in its financial performance for the second quarter of fiscal year 2026, despite facing challenges in the global textile industry.

Key Financial Highlights

• Profitability: RSWM achieved a profit after tax (PAT) of ₹6.30 crores in Q2 FY26, compared to a loss of ₹21.00 crores in the same quarter last year.
• Revenue: The company's revenue slightly declined by 1.4% year-on-year to ₹1,150.00 crores.
• EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) surged by 85.6% YoY to ₹79.00 crores.
• EBITDA Margin: Margins expanded to 6.8% from 3.6% in the previous year.

Operational Performance

The company faced challenges due to lower capacity utilization in its melange and knit businesses. This was primarily attributed to the imposition of 50% tariffs on textile goods by the United States, which negatively impacted the entire supply chain.

Strategic Initiatives

RSWM has undertaken several strategic initiatives to improve its operational efficiency and financial performance:

1. Renewable Energy Investment: The company has invested in 70 MW of renewable energy capacity, aiming to achieve 70% green energy consumption. This is expected to result in annual savings of ₹30.00-40.00 crores.

2. Knit Division Expansion: RSWM announced a ₹92.00 crores investment to expand its knit division capacity from 700 to 900 tons monthly, including new printing facilities.

3. Financial Management: The company has reduced its finance costs by 11.5% YoY through better financial planning. It has also significantly reduced inventory by ₹121.00 crores and receivables by ₹51.00 crores compared to March 2025.

Industry Challenges

The textile industry is currently facing several challenges:

• The 50% U.S. tariffs on textile goods have disrupted the global textile supply chain.
• The removal of cotton import duty in India has negatively impacted cotton yarn prices by 5-6%.

Management Commentary

Rajeev Gupta, Joint Managing Director of RSWM Limited, commented on the results: "Despite the challenging environment, we have managed to turn around our performance through focused cost management and strategic initiatives. Our investments in renewable energy and capacity expansion are expected to drive long-term growth and profitability."

Outlook

While the company faces ongoing challenges due to global trade tensions and market dynamics, RSWM remains committed to its long-term growth strategy. The management expects the benefits of its recent investments and operational improvements to materialize in the coming quarters, potentially leading to sustained profitability and market competitiveness.

Investors and stakeholders will be closely watching how RSWM navigates the evolving industry landscape and capitalizes on its strategic initiatives in the coming months.

RSWM Limited , a leading textile manufacturer, has reported a significant turnaround in its financial performance for the first half of fiscal year 2026, while positioning itself to capitalize on upcoming trade agreements for export growth.

Financial Highlights

For the half-year ended September 30, 2025, RSWM reported:

• Revenue from operations of ₹2,319.14 crore, compared to ₹2,373.82 crore in H1 FY25
• Gross profit of ₹885.30 crore, up 2.7% year-on-year, with margins expanding to 37.8%
• EBITDA of ₹159.78 crore, a substantial 66.1% increase from ₹96.21 crore in H1 FY25
• Net profit of ₹13.24 crore, marking a turnaround from a loss of ₹34.88 crore in the previous year

Quarterly Performance

For Q2 FY26, the company achieved:

• Revenue of ₹1,149.95 crore
• EBITDA of ₹78.77 crore, up 85.6% year-on-year
• Net profit of ₹6.28 crore, compared to a loss of ₹21.20 crore in Q2 FY25

Strategic Initiatives

RSWM is actively preparing to leverage the opportunities presented by the India-UK Free Trade Agreement and the upcoming India-EU trade pact. These agreements are expected to reduce tariffs and enhance market access for Indian textile exports.

The company is focusing on:

1. Product Innovation: Continuous development to meet evolving market demands
2. Compliance Systems: Strengthening processes to align with international standards
3. Supply Chain Optimization: Improving efficiency to enhance competitiveness

Sustainability Focus

RSWM is reinforcing its commitment to sustainability through:

• Increased use of recycled fibers
• Investments in renewable energy
• Adoption of water-efficient technologies

These initiatives aim to align with the sustainability goals of global customers and contribute to responsible manufacturing practices.

Management Outlook

Riju Jhunjhunwala, Chairman & Managing Director and CEO of RSWM Limited, commented on the results: "As we move into the second half of the financial year, we expect a gradual recovery in exports and greater policy clarity. While short-term challenges may persist, the medium-term outlook remains positive."

Conclusion

RSWM's financial turnaround, coupled with its strategic focus on export growth and sustainability, positions the company well for future growth. The textile manufacturer's ability to navigate challenging market conditions while preparing for new opportunities demonstrates its resilience and forward-thinking approach in the evolving global textile landscape.

Investors and industry observers will be watching closely to see how RSWM capitalizes on the potential benefits of upcoming trade agreements and continues to drive operational improvements in the coming quarters.