R&B Denims Ltd H1 FY26 Results – From Yarn to Yachts of Profit: 15.9% ROCE, 53.7% Profit Growth, and a Denim Story Woven in Cashmere Confidence
1. At a Glance
The Surat-based denim dynamo, R&B Denims Ltd, just rolled out its H1 FY26 results like a perfectly washed pair of Levi’s — smooth, tight, and slightly overpriced. At a market cap of ₹1,083 crore and a stock price of ₹120, this textile hustler from Gujarat is strutting down the financial runway with a P/E of 32.8x, ROCE of 15.9%, and ROE of 12.3%. The latest quarter (Sep FY26) saw sales jump 20.6% QoQ to ₹113 crore and PAT rise 53.7% to ₹7.13 crore. That’s not growth — that’s a denim-clad mic drop.
The company’s denim division contributes 97.8% of revenue (because let’s be real, nobody’s buying their solar panels yet). Despite no dividend, the company is rewarding shareholders the old-school way — through stock appreciation. In the last year alone, returns hit +32.2%, outpacing the jeans industry average. But can it stay in fashion, or will it fade like cheap indigo? Keep reading.
2. Introduction
Once upon a time in Surat — the textile Las Vegas of India — two fabric families, the RawatKhedias and the Boranas, decided they were tired of supplying others’ denim dreams. So, in 2012, they stitched together R&B Denims, an empire of fabric, flair, and financial finesse.
Today, R&B isn’t just rolling out jeans material; it’s producing attitude in meters. The company churns out 2 crore meters of denim per year, including high-width fabrics (up to 76 inches, wider than the average Bollywood ego). And now, they’re even branching into garment manufacturing — the vertical integration move every textile company dreams of before realizing tailoring is harder than Excel formulas.
But the real twist? While most textile firms battle sluggish demand, R&B keeps growing its profit margins, posting 11% OPM and an enviable EPS of ₹3.68. Sure, sales growth over five years is a modest 7.38%, but profit growth over the same period is a muscular 45%.
So what’s their secret? Efficient spinning, cost control, and maybe a bit of Gujarati jugaad.
3. Business Model – WTF Do They Even Do?
R&B Denims operates like the complete denim ecosystem — spinning, weaving, finishing, and now garmenting. Think of them as the “Maruti Suzuki of denim”: reliable, omnipresent, but secretly flexing premium ambitions.
Their product portfolio is vast — from 100% cotton to organic blends, tencel, stretch, metallic coatings, and coated finishes. Basically, if your jeans sparkle in a nightclub, chances are R&B made the fabric.
They also run an advanced spinning facility via their subsidiary Ricon Industries, which manufactures ring-spun, open-end, and specialized yarns. In FY25, R&B acquired 67% of Ricon Textile Pvt. Ltd. for ₹3.35 crore — a smart move that gives them upstream control and EPS accretion from FY26.
Their solar (0.4%) and wind (1.8%) divisions barely matter, but hey, it’s 2025 — every company needs a “green” line item to impress ESG enthusiasts.
Exports form just 4% of revenue, meaning they’re deeply domestic. But that’s a double-edged sword — steady demand, limited currency cushion. In short: R&B makes fabric, sells it across India, and occasionally ships a few rolls abroad — all while expanding into garments and yarns to reduce dependency on third-party suppliers.
4. Financials Overview
Quarterly Results Lock: Q2 FY26 (Half-Yearly Data refers to Sep 2025)
Let’s roll out the fresh quarterly fabric of numbers:
Metric (₹ Cr)
Sep 2025 (Latest)
Sep 2024 (YoY)
Jun 2025 (QoQ)
YoY %
QoQ %
Revenue
112.63
93.35
102.61
20.6%
9.7%
EBITDA
11.99
10.97
11.28
9.3%
6.3%
PAT
7.13
4.64
8.23
53.7%
-13.4%
EPS (₹)
0.79
0.52
0.91
51.9%
-13.2%
Commentary:
Revenue is stitching up a nice pattern, rising 20.6% YoY, but the PAT shows a sharper glow-up of 53.7%, meaning better cost control and possibly improved realizations.
EBITDA margins at 10.65% remain consistent — not flashy, not frayed.
EPS at ₹0.79 for the quarter annualizes to ₹3.16, giving a forward P/E near 38x — pricey, but fashion
