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1 — At a Glance
Baroda Rayon closed FY26 with revenue of ₹61.77 crore, down from ₹99.6 crore the year before — a 38% drop. Net profit fell in step, from ₹40.35 crore to ₹22.21 crore. The company carries the word “Rayon” in its name and makes none; the rayon plant has been idle since August 2008, and the textile segment now contributes 2% of revenue, with real estate doing the other 98%.
The number that demands attention is the operating margin: 31% for the full year, peaking above 34% in the September quarter. The number that demands worry sits on the balance sheet — ₹642 crore of inventory against ₹61.77 crore of annual sales, the bulk of it unsold industrial units in Surat. A company books its profit when units sell; here, the units accumulate faster than they clear.
Borrowings stand at ₹176 crore, down from ₹295 crore three years ago. ROE for the year was 5.29%, ROCE 3.69% — single digits, on a balance sheet that has swelled to ₹732 crore.
A property developer’s profit is only as real as its sales velocity. The rest is construction-in-progress wearing a profit’s clothing. Whether FY26’s margin survives contact with a slower sales quarter is the question the rest of this entry circles.
2 — Introduction
The Baroda Rayon Corporation was incorporated in 1958 and began making viscose filament yarn in 1962. It went non-operational in August 2008. In 2022-23, Mr. Damodarbhai Patel and his group bought the company with a stated objective: monetize the land bank through real estate development. The rayon never came back. The land did the talking.
What sits on the books now is a Surat real-estate developer. Three projects run under the banner: Shree Laxminarayan Industrial Park, and Surat Textile Bourse Phase-I Parts A and B. The promoters carry, per the Infomerics rating report, over 35 years of experience in Surat real estate between the chairman and his lieutenants.
FY26’s recent moves were financial housekeeping. In May 2025 the company availed a ₹100 crore term loan from State Bank of India for the Part B project. In March 2025 it settled outstanding dues with three creditors — Bhavani Syntex (₹46.5 crore), Unipat Rayon, and Ramsons Properties — by handing over old Nylon plant machinery and a couple of industrial units rather than cash. The dead textile business, it turns out, still had scrap value to trade.
3 — Business Model: WTF Do They Even Do?
Strip the name plate off and Baroda Rayon is a company that inherited a defunct yarn factory’s land and is now selling that land back to the market as industrial real estate. The product is plots and pre-built industrial units in Surat — the Textile Bourse, fittingly, sells real estate to the textile trade the company itself abandoned.
The mechanics are a developer’s standard loop: estimate a project cost, fund it with promoter contribution plus bank debt plus customer advances, build, sell units, repeat. Surat Textile Bourse Phase-I Part A has an estimated cost of ₹344.83 crore; per the Infomerics report, ₹304.57 crore (88% of cost) was incurred by March 2026, with 225 of 323 units sold — roughly 70%. Part B is earlier in its life: ₹99.27 crore incurred against a ₹185.35 crore budget, with 19 of 197 units sold, around 10%.
That gap between Part A (70% sold) and Part B (10% sold) is the whole business in miniature. One project nearly home, one barely begun, and a balance sheet holding the construction cost of both until buyers arrive.
The textile segment still appears in the accounts, but the company’s own filing is blunt about it: operational activity has been at a standstill since August 2008, and the revenue under “textile” is essentially other income. A company keeps a segment on the books out of habit, not output.
Does a single-city developer with two live projects and one nearly-sold count as a real estate company, or a land-monetization vehicle with a construction crew attached?
4 — Financials Overview
Figures are standalone, in ₹ crore. (The company
