Ruby Mills Limited , a prominent player in the textile and real estate sectors, has reported a remarkable financial performance for the second quarter. The company's results showcase significant growth across key financial metrics, indicating a strong recovery and robust business operations.

Financial Highlights

Ruby Mills demonstrated substantial growth in both revenue and profitability:

Revenue Growth

The company's revenue from operations witnessed a substantial increase of 66.7% year-over-year, rising to ₹856.40 crore from ₹513.80 crore in the same quarter of the previous fiscal year. This significant growth in revenue indicates a strong demand for the company's products and services across its business segments.

Profitability Surge

Ruby Mills' net profit for the quarter showed an impressive jump of 294.3%, reaching ₹110.00 crore compared to ₹27.90 crore in the corresponding quarter of the previous year. This substantial increase in profitability reflects the company's improved operational efficiency and effective cost management strategies.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) doubled to ₹173.10 crore from ₹85.00 crore in the same period last year, representing a growth of 103.6%. This significant improvement in EBITDA indicates enhanced operational performance and increased profitability at the core business level.

Margin Compression

Despite the overall positive performance, it's worth noting that the EBITDA margin compressed to 20.21% from 16.54% in the previous year. This compression in margin suggests that while the company has significantly increased its revenue and profitability, it may have faced some pressure on its operational costs or pricing.

Segment Performance

As per the company's segmental reporting:

1. Textiles Segment: Revenue stood at ₹748.64 crore, contributing significantly to the overall revenue.

2. Real Estate and Related Segment: This segment generated revenue of ₹107.80 crore, complementing the company's primary textile business.

Balance Sheet Position

As of September 30, 2025, Ruby Mills reported:

• Total Assets: ₹11,288.97 crore
• Total Equity: ₹6,539.30 crore
• Total Liabilities: ₹4,749.67 crore

The company maintains a strong balance sheet position, with a healthy equity base supporting its operations and future growth initiatives.

Ruby Mills' impressive Q2 results demonstrate the company's resilience and ability to capitalize on market opportunities. The substantial growth in revenue and profitability, coupled with a strong balance sheet, positions the company well for sustained growth in the coming quarters. However, investors and analysts may want to keep an eye on the EBITDA margin compression and its potential impact on future profitability.

Ruby Mills , a century-old textile company, has recently found itself in the crosshairs of the Enforcement Directorate (ED). The company disclosed that the ED has attached its bank balance of Rs 2,59,90,569.00 held with Bank of India through an order dated October 16, 2025.

Background of the Attachment

The attachment relates to a complex financial transaction dating back to 2012. Here's a breakdown of the key events:

ED's Allegations and Company's Response

The ED's primary contention is that while Ruby Mills returned the principal advance to RRL's Resolution Professional, the interest earned on the term deposits created from these advance payments is subject to attachment.

Ruby Mills has stated that this matter has no impact on its current business operations or financial commitments. The company is seeking legal advice and plans to appeal the order. In its disclosure, Ruby Mills emphasized:

1. The transaction with RRL was a routine commercial transaction in the ordinary course of business.
2. The company denies any knowledge of fraud by third parties.
3. Ruby Mills has maintained high standards of corporate governance and financial integrity throughout its century-long operations.

Implications and Next Steps

While the attachment of Rs 2.60 crore is significant, Ruby Mills has assured stakeholders that it does not affect its present business operations or financial obligations. The company's next steps include:

1. Seeking advice from its legal team and advisors
2. Planning to appeal the ED's order
3. Continuing to maintain transparency with investors through regulatory disclosures

Conclusion

This case highlights the complex nature of long-term financial transactions and the scrutiny they can face from regulatory bodies. As the situation unfolds, stakeholders will be watching closely to see how Ruby Mills navigates this regulatory challenge while maintaining its business operations and financial commitments.