🧵 Raj Rayon Is Up 150x – But Is It a Revival Story or Operator’s Yarn?

At a Glance

Raj Rayon Industries manufactures polyester chips, POY (Partially Oriented Yarn), and DTY (Drawn Textured Yarn). It was bankrupt and shut till FY21. Now it’s bouncing back — from ₹0 sales to ₹849 Cr in FY25. ROE has turned positive, promoter holding is 94%, and shareholders are piling in. But does the story have threads… or holes?

1. 🧶 WTF Do They Even Do?

Let’s get textile-techy:

• Product line: Polyester Chips, POY & DTY
• End usage: These are raw materials used in textiles, garments, home furnishings
• Business model: B2B – sells to textile processors and manufacturers
• Part of SVG Group (unclear strength, mostly promoter-level control)

Operations were halted for years. From FY20 to FY22, they had negligible revenue. But post-2022, it’s been a full-blown revival:

• FY22: ₹0 revenue
• FY23: ₹137 Cr
• FY24: ₹745 Cr
• FY25: ₹849 Cr

That’s a Cinderella recovery… or the setup to a Netflix scam doc.

2. 💰 Financials – From Dust to Polyester

Let’s not pretend — the FY22 “profit” was likely a writeback or one-time gain