R&B Denims Q4 FY26: ₹138 Crore of Sales, ₹1 Crore of Profit

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1 — At a Glance

R&B Denims closed its March 2026 quarter with revenue of ₹137.65 Cr, up 37.9% over the same quarter a year earlier and 21.8% over the December quarter. The top line did exactly what a growing textile maker’s top line is supposed to do.

The bottom line went the other way. Quarterly net profit landed at ₹1.12 Cr, down 85.3% year-on-year from ₹7.61 Cr, and down 86.5% from the prior quarter’s ₹8.29 Cr. Operating margin fell to 4.40% from 12.21% a year earlier — the lowest margin in the eight quarters on the sheet.

For the full year, revenue rose 27% to ₹466 Cr while net profit eased to ₹25 Cr from ₹27 Cr. A year of more sales and slightly less profit, with almost all of the damage concentrated in the final quarter.

Outside the financials, the period carried a 1:2 bonus issue and a face-value split (both effective April 2026), and a search proceeding initiated by SEBI at the company, promoter and CFO premises on April 22–23, 2026. The market currently pays 11.6x earnings here, against an industry P/E of 24.6.

A quarter where the revenue line and the profit line stopped agreeing — the rest of this entry is the record of how they got there.

2 — Introduction

R&B Denims Ltd was incorporated in 2010 and manufactures denim textile products out of Surat, Gujarat. The business runs through a collaboration of the RawatKhedia and Borana groups, both with over three decades in textiles, and operates a vertically integrated facility with an annual fabric capacity of about 2 crore metres per annum — among the few Indian denim makers able to produce high-width denim up to 76 inches.

FY26 was a year of corporate machinery as much as fabric. The board approved a 1:2 bonus and a Re 1 face-value split, raised authorised capital to ₹30 crore, and saw Amit Dalmia move into the combined role of Chairman and Managing Director from April 2025. The company also commenced a garment-manufacturing line in April 2025 and consolidated its subsidiary Ricon Textile, in which it had taken a 67% stake for ₹3.35 Cr.

The year then took a regulatory turn: a SEBI search at the company, promoter and CFO premises on April 22–23, 2026, on which the company stated there was no material impact on financials or operations at the time. Against that backdrop, the headline was a strong nine months giving way to a weak fourth quarter.

3 — Business Model: WTF Do They Even Do?

They weave denim. A great deal of denim, in a great many ways. The product sheet reads like a fabric shop that refused to specialise: 100% cotton, blends, cotton-tencel, organic cotton, power stretch, cotton elastane, even metallic-coated “shiny” fabric, across weaves named plain, twill, satin, dobby, herringbone and honeycomb. If a pair of jeans can be made from it, R&B has probably listed it.

The model is vertical integration — spinning yarn at one end (via subsidiary Ricon Industries, with 2,208 open-end rotors and 11,520 ring spindles), weaving fabric in the middle, and from April 2025 stitching garments at the far end. The logic of owning every step is control; the cost of owning every step is that a margin wobble anywhere shows up in the consolidated number, and in FY26 it did.

Geographically, the FY24 mix was 96% domestic and 4% exports — this is a company that sells to India first and the world as an afterthought. One customer, Denim Corporation, supplied 11% of FY24 revenue; everyone else stayed under 10%.

For years the segment table also carried solar and wind energy lines, run purely to cut the factory’s power bill. From FY26 the company stopped reporting them separately, having decided the renewable sideshow was a cost-saving footnote rather than a business. The encyclopedia salutes the honesty: a textile company quietly admitting its windmills were never a second act.

Reader question: a maker that spins, weaves and now stitches owns more