1. Opening Hook
Just when global textile players were blaming cotton, climate, and customers for shrinking profits,RSWMpulled off a quiet comeback. Despite U.S. tariffs, cotton chaos, and discount-hungry buyers, the Bhilwara-based textile veteran turned its P&L from red to black — and did it without spinning excuses.
The management sounded like yoga instructors: calm, strategic, and laser-focused on “RSWM 2.0.” From renewable power to printed knits, they’re stitching resilience into every fibre. The punchline? They call it a turnaround — we call itrevenge of the yarn.Read on; it gets softer but sharper.
2. At a Glance
- Revenue ₹1,150 Cr (–1.4% YoY):Sales slipped, but not their composure.
- EBITDA ₹79 Cr (+86% YoY):Margins warmed up while cotton cooled off.
- PAT ₹6.3 Cr vs Loss ₹21 Cr:The “from loss to cloth” story of the quarter.
- Gross Margin 38.4% (+195 bps):Cotton cheaper, CFO happier.
- Finance Cost ₹30.6 Cr (–11% YoY):Even debt felt lighter this season.
- Inventory down ₹121 Cr:Finally, warehouses aren’t fashion museums.
- Renewable Power 70% of total:Green energy, but in RSWM’s case, also green savings — ₹30–40 Cr a year.
3. Management’s Key Commentary
“Textile industry faced panic after 50% U.S. tariffs.”(Translation: Uncle Sam’s trade tantrum turned our threads into thrillers.)
“We’ve invested ₹60 Cr in renewable energy; 70% of our power is now green.”(Translation: Our yarns are now guilt-free — both ethically and electrically.) 🌱
“Our knit capacity will rise from 700 to 900 tons, with new printing facilities.”(Translation: From plain cloth to designer ambitions — literally printing profits.)
“Gross profit up 4%, EBITDA up 86% YoY — thanks to cost control and mix.”(Translation: We squeezed more juice out of fewer reels.)
“Finance cost down 11.5%; working capital reduced by 10%.”(Translation: We finally
stopped funding our yarn with our stress levels.)
“Jammu project cancelled due to slow subsidies and poor GST math.”(Translation: Even government incentives couldn’t pass our payback test.) 😏
“Long-term outlook remains positive despite tariffs and cotton volatility.”(Translation: Tariffs come and go; Bhilwara spins forever.)
4. Numbers Decoded
| Metric | Q2 FY26 | Q2 FY25 | YoY Change | Comment |
|---|---|---|---|---|
| Revenue | ₹1,150 Cr | ₹1,166 Cr | –1.4% | Slight slip amid tariff tension |
| EBITDA | ₹79 Cr | ₹43 Cr | +85.6% | Margin doubled — thanks, cotton crash |
| EBITDA Margin | 6.8% | 3.6% | +318 bps | Efficiency stitched in |
| PAT | ₹6.3 Cr | –₹21 Cr | — | Finally in black threads |
| Finance Cost | ₹30.6 Cr | ₹34.6 Cr | –11.5% | Lenders can breathe too |
| H1 Revenue | ₹2,319 Cr | ₹2,374 Cr | –2.3% | Mild slowdown |
| H1 PAT | ₹13.2 Cr | –₹34.9 Cr | — | Full-year turnaround underway |
Bottom line:RSWM spun fiscal gold out of macro mayhem.
5. Analyst Questions
SK Capital:“Impact of green energy?”
“We save ₹1 per unit; ₹30–40 Cr annually.”(Translation: Solar panels pay faster than receivables.)
Kapoor & Co.:“Knit expansion ₹92 Cr — payback?”
“Yes, adding printing boosts mix and margins.”
