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.

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:

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:

1. 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.

2. 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.

3. 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.