Textile major RSWM Limited has staged a decisive turnaround in the financial year ended March 31, 2026, reporting a net profit of ₹52 crore against a loss of ₹41.3 crore in FY25 — marking the company’s return to the black after a bruising prior year.
The company, one of India’s largest manufacturers of synthetic, mélange, cotton and blended yarns, reported full-year revenue of ₹4,554 crore, down 5.6% from ₹4,825 crore a year ago, as softer pricing, geopolitical uncertainty and volatile raw material costs weighed on the top line. But what the company gave up in revenue, it more than recovered in profitability.
EBITDA jumped 40.5% year-on-year to ₹327 crore, with margins widening to 7.1% from 4.8% in FY25 — a gain of 231 basis points. Gross margins also improved significantly, rising to 38.1% from 35.6%, reflecting a better product mix and tighter cost control.
A Strong Finish to the Year
The fourth quarter offered further encouragement. Revenue came in at ₹1,142 crore, up 4.5% sequentially, with EBITDA of ₹85 crore and a PAT of ₹35 crore — more than eight times the ₹4.2 crore recorded in Q3 FY26. Year-on-year, quarterly PAT surged nearly 22 times from a meagre ₹1.6 crore.
The recovery was aided partly by the company’s adoption of the new Income Tax Regime from April 1, 2026, which triggered a reversal of deferred tax liabilities and gave an additional boost to the bottom line.
ESOP Issuance to Leadership Team
RSWM is set to lead the Textile industry by being the pioneer in establishing shared ownership through an Employee Stock Ownership Plan (ESOP) for their senior leadership team. As part of this initiative, 2% of the Company’s paid-up share capital will be designated for the ESOP, encompassing around 35 leadership positions.
Management Commentary
Speaking about the performance, Riju Jhunjhunwala, Chairman & Managing Director and CEO, RSWM Limited, said, “Over the past year, RSWM has delivered a decisive turnaround, transitioning from losses to profitability while strengthening our operational and financial foundation. This performance reflects focused execution across our core verticals, sharper product positioning, and disciplined cost management. Our revenues for FY26 stand at ₹4,554 crore, with EBITDA of ₹327 crore and PAT of ₹52 crore, which speaks for the steady momentum we have built through the year. As we look ahead, we remain committed to scaling high-value segments, enhancing global competitiveness, and deepening customer partnerships.”
Rajeev Gupta, Joint Managing Director, RSWM Limited, said, “The global textile industry continues to navigate a complex environment shaped by geopolitical developments, trade disruptions, and tariff uncertainties. Despite these challenges, RSWM has delivered consistent growth over the past year, reflecting the resilience of our business model and the strength of execution. Our ability to adapt through supply chain optimization, sharper market alignment, and stronger internal processes has enabled us to sustain the growth performance. As we look ahead, we remain focused on building on this momentum, leveraging emerging opportunities, and delivering sustainable growth in the quarters to come.”
RSWM Limited, the flagship company of LNJ Bhilwara Group, is one of the leading manufacturers and exporters of synthetic, cotton and blended yarns, melange yarns, knitted & denim fabric in India. Its 11 manufacturing plants with 6.13 lakh spindles, 172 looms, 96 circular and flat knitting machines that produce high-quality cotton, melange, synthetic novelty yarns, denim & knitted fabrics. It annually produces 24,000 MT Melange Yarn, 110973 MT Synthetic Yarn, 31027 MT Cotton Yarn, 34 Million Meters Denim Fabric, 9360 MT Knits Fabric, 43,000 MT Green Fibre. RSWM initiatives towards sustainability have helped in saving water 233500 KL per annum, reducing 8 lac tonnes per annum of CO2 emission and recycling approx. 18.3 billion PET bottles per annum.
