Baroda Rayon Corporation Ltd Q1 FY26 – From Viscose Dreams to Real Estate Schemes, ₹604 Cr Land Revaluation & Employee Dues Still Pending
1. At a Glance
Imagine a company born in 1958 to spin yarn, but by 2008 it had spun only losses. After shutting down textile operations, Baroda Rayon decided: “Yarn se paisa nahi ban raha? Chalo builder ban jaate hain.” Welcome to India, where failed textile mills reincarnate as real estate developers.
2. Introduction
Baroda Rayon is like that uncle who once ran a textile mill, then shut shop, didn’t pay all his employees, and now sells real estate plots while planning a comeback in viscose yarn.
Textile operations? Dead since 2008. Employee dues? Still pending after 17 years. Main business today? Selling land converted into stock-in-trade and revalued at ₹604 Cr. Revenue in FY23 was 70% plot sales and 30% asset sales — basically a garage sale in corporate format.
And yet, the stock trades at ₹146 with a market cap of ₹334 Cr, because hey, India loves a good turnaround story, even if it’s more “CID” than “Startup India.”
3. Business Model – WTF Do They Even Do?
Earlier: Manufactured viscose filament yarn, nylon yarn, and by-products. Now:
Real Estate: Selling 1,030 industrial units and 503 open plots in phases.
Dream Factory: Greenfield viscose project at Dahej (15,000 MTPA capacity) with a 12 MW captive power plant — still just a plan.
Financial Gymnastics: Converting land into stock-in-trade, revaluing, and booking profits on asset sales.
This isn’t a “business model”; it’s a “survival model.” Question: Can a company that couldn’t run yarn operations for 17 years suddenly run a 15,000 MTPA plant?
4. Financials Overview
Source table
Metric
Latest Qtr (Jun ’25)
YoY Qtr (Jun ’24)
Prev Qtr (Mar ’25)
YoY %
QoQ %
Revenue
₹22.4 Cr
₹10.5 Cr
₹56.8 Cr
+113%
-60.6%
EBITDA
₹7.5 Cr
₹2.3 Cr
₹15.5 Cr
+224%
-51.9%
PAT
₹7.1 Cr
₹6.3 Cr
₹24.4 Cr
+12.7%
-70.9%
EPS (₹)
3.10
2.75
10.63
+12.7%
-70.8%
Commentary: Quarterly results are more volatile than Bigg Boss TRPs. One quarter it’s ₹56 Cr sales, next quarter back to ₹22 Cr. Clearly, revenue here depends on how many plots were sold that month.
5. Valuation Discussion – Fair Value Range
Method 1: P/E
EPS TTM ~ ₹18
Industry P/E ~41
Fair Value Range (P/E basis): ₹300 – ₹720 Cr market cap
