RSWM Ltd., the flagship textile arm of the LNJ Bhilwara Group, reported revenue of Rs 1,093 crore for the third quarter ended December 31, 2025 (Q3 FY26), with EBITDA rising 41.7 per cent year-on-year to Rs 82 crore and margins improving to 7.4 per cent.
Despite moderated volumes and softer demand conditions during the quarter, the company delivered strong margin expansion, supported by an improved product mix, operating efficiencies and disciplined cost management.
Revenue declined 5 per cent sequentially from Rs 1,150 crore in Q2 FY26 and 8.6 per cent year-on-year from Rs 1,195.6 crore in Q3 FY25. For the nine months ended FY26, revenue stood at Rs 3,412 crore compared to Rs 3,569.4 crore in the corresponding period last year.
Gross profit for Q3 FY26 stood at Rs 433.8 crore, with gross margins improving to 39.2 per cent — up 78 basis points quarter-on-quarter and 310 basis points year-on-year. For the nine-month period, gross profit rose to Rs 1,319.1 crore, with margins expanding 217 basis points year-on-year to 38.3 per cent.
EBITDA for the quarter increased to Rs 81.9 crore from Rs 57.8 crore in Q3 FY25, while EBITDA margin improved by 260 basis points year-on-year to 7.4 per cent. For 9M FY26, EBITDA rose to Rs 241.7 crore compared to Rs 154 crore in the year-ago period, with margins expanding to 7 per cent.
Profit after tax (PAT) for Q3 FY26 stood at Rs 4.2 crore, remaining positive despite a one-time exceptional labour-related service cost during the quarter. For the nine-month period, PAT improved to Rs 17.4 crore, marking a turnaround from a loss of Rs 42.9 crore in 9M FY25.
Management Commentary
Commenting on the performance, Riju Jhunjhunwala, Chairman & Managing Director and CEO, RSWM Ltd., said:
“RSWM’s FY26 performance highlights strong execution capabilities and operational resilience in an otherwise challenging global textile environment. Despite uneven demand trends, geopolitical pressures and cautious sourcing behaviour, the Company has maintained strategic clarity and disciplined execution. Its continued focus on differentiated offerings, manufacturing efficiency and prudent cost governance signals a conscious shift toward improving the quality of earnings, enhancing predictability and reducing exposure to cyclical volatility.
The India–EU Free Trade Agreement represents a structural positive for Indian textile and apparel exporters, particularly given Europe’s high import dependence. While tariff reductions improve competitiveness across yarn, fabric and apparel segments, the requirement to comply with stringent EU norms on sustainability, traceability and labour standards raises the competitive threshold. This is likely to favour organised, integrated and scale-driven players, positioning RSWM to gain relative advantage as smaller or less-prepared players face higher compliance barriers.
From a strategic standpoint, RSWM’s emphasis on circularity, renewable energy adoption and responsible resource management underscores a long-term, sustainability-led growth approach. The Company’s focus on financial prudence, customer engagement and value-added products reflects a balanced strategy aimed at building durable competitiveness while preparing for the next phase of growth, thereby strengthening long-term stakeholder value creation.”
