RSWM Limited , a leading textile manufacturer, has reported a net profit of ₹6.3 crore for the second quarter, marking a significant turnaround from a loss of ₹21.2 crore in the same period last year. The company's financial results reflect improved operational efficiency and strategic management amid challenging market conditions.

Financial Highlights

• Revenue: RSWM posted a revenue of ₹1,150.00 crore, compared to ₹1,166.00 crore in the same quarter of the previous year, showing a marginal decline of 1.4% year-over-year.
• EBITDA: The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) nearly doubled to ₹78.80 crore from ₹42.40 crore in the corresponding quarter last year.
• EBITDA Margin: EBITDA margin expanded significantly to 6.8% from 3.6%, indicating improved operational efficiency.
• Profit Before Tax: RSWM reported a profit before tax of ₹10.10 crore, compared to a loss of ₹32.10 crore in the same quarter of the previous fiscal year.

Segment Performance

The company's financial results show a balanced performance across its two main segments:

Strategic Developments

The company has made significant strategic moves to strengthen its position:

1. Renewable Energy Investment: RSWM has entered into investment agreements with Adani Group companies for securing 60 MW of renewable energy (solar & wind) for its power requirements in Rajasthan.

2. Acquisition in Recycling Business: The Board has approved the purchase of a 100% stake in LNJ Greenpet Private Limited, a company focused on bottle-to-bottle recycled PET resin business, for ₹20.01 crore.

3. Operational Restructuring: RSWM announced the closure of spinning operations at its Chhata unit, effective November 6, 2025, as part of its operational optimization efforts.

Outlook

RSWM's return to profitability and strategic initiatives in renewable energy and recycling indicate a forward-looking approach to sustainable growth. The company's focus on operational efficiency and strategic acquisitions positions it well to capitalize on future opportunities in the textile sector.

RSWM Limited , a leading textile manufacturer and the flagship company of LNJ Bhilwara Group, has taken a significant step towards sustainability by signing an agreement with Adani Energy Solutions Ltd. (AESL) for the supply of 60MW of renewable energy. This partnership marks a crucial milestone in RSWM's commitment to environmental responsibility and operational efficiency.

Key Highlights of the Agreement

Impact on RSWM's Sustainability Goals

The collaboration between RSWM and AESL is set to have a substantial impact on RSWM's energy profile and sustainability efforts:

1. Increased Renewable Energy Usage: The agreement will boost RSWM's renewable energy contribution from the current 33% to 70% of its total energy requirements.
2. Carbon Footprint Reduction: By significantly increasing its reliance on green power, RSWM aims to reduce its carbon footprint substantially.
3. Long-term Energy Security: The partnership enhances RSWM's long-term energy security, ensuring a stable and sustainable power supply for its operations.
4. Operational Efficiency: The move is expected to improve RSWM's operational efficiency by providing a reliable and clean energy source.

AESL's Expanding Portfolio

Adani Energy Solutions Ltd., as part of this agreement, will manage the entire green power value chain for RSWM's additional power requirements. This aligns with AESL's broader strategy in the Commercial & Industrial (C&I) sector:

• AESL is targeting a C&I portfolio of 7,000MW over the next five years.
• The company aims to serve bulk electricity users with customized energy solutions, focusing on reliable, competitively priced, and increasingly green power.

Leadership Perspectives

Mr. Riju Jhunjhunwala, Chairman, Managing Director and CEO of RSWM Ltd, emphasized the company's vision: "This achievement underscores our long-term vision to align growth with sustainability and reinforce our position as a forward-looking industrial leader."

Mr. Kandarp Patel, CEO of Adani Energy Solutions Ltd, highlighted the partnership's significance: "This collaboration is a testament to the scalability and impact of renewable power in strengthening industrial growth while ensuring sustainability."

Conclusion

The partnership between RSWM and AESL represents a significant step towards sustainable industrial practices in India's textile sector. By sourcing 70% of its total energy requirement from renewable sources, RSWM is setting a benchmark well above the national average of 31% clean energy mix. This initiative not only contributes to RSWM's sustainability goals but also aligns with broader national and global efforts to transition towards cleaner energy sources in industrial operations.