1. At a Glance
RSWM Ltd — the textile arm of the mighty LNJ Bhilwara Group — looks like that overachieving cousin who owns 12 factories but still gets trolled for earning less than his electricity bill. The company’s share price, currently at ₹155, is down 7.9% over the past year, which is ironic considering it’s one of the few textile companies that actually knows what ESG stands for (no, not “Extra Slow Growth”).
With a market cap of ₹733 crore, RSWM trades at a head-spinning P/E of 90.9, suggesting either investors are seeing the next Reliance in denim or the market simply forgot to divide by the right number. The book value is ₹279, giving a P/B ratio of just 0.56, so you’re technically buying ₹1 worth of assets for 56 paise — what a clearance sale!
In Q2 FY26, revenue clocked ₹1,151 crore (down 1.3% QoQ), but PAT leapt 142% QoQ to ₹7.43 crore. Yes, that’s right — the kind of rebound you’d expect after seeing your ex with someone else. The company’s ROCE is 2.6%, ROE is -3.2%, and Debt-to-Equity sits at 1.16x. For a company that’s been weaving since 1960, those numbers scream “we make fabrics, not fortunes.”
But with ₹200 crore in fresh capex, renewable energy ambitions, and a clientele featuring everyone from H&M to IKEA, RSWM’s comeback arc could be as dramatic as a Bollywood hero returning after intermission.
2. Introduction
Imagine being in the textile business for 65 years, exporting to 70 countries, supplying to Levi’s and H&M, yet still having to explain to investors why your P/E looks like a GST rate. Welcome to RSWM Ltd, the Bhilwara-based textile giant that’s seen more economic cycles than some of its spindles.
RSWM isn’t just another spinning mill; it’s the flag-bearer of LNJ Bhilwara Group — the same empire that runs HEG Ltd (the graphite electrode legend) and Maral Overseas. Together, they form an industrial family tree so diversified, even your mutual fund would feel insecure.
Now, what’s fascinating is RSWM’s dual personality: on one hand, it produces 1.7 lakh tonnes of yarn and 31 million metres of fabric annually; on the other, it posts profits smaller than the GST on its denim exports. It’s like a gym bro who lifts 200 kilos but faints while paying rent.
In the last few quarters, RSWM has gone through what can best be described as “creative destruction.” It shut down Chhata spinning, acquired Ginni Filaments’ plant, invested ₹92 crore in knitting modernization, pumped ₹50 crore into renewables, and still found time to report a profit. If multitasking were a balance sheet item, RSWM would score an A+.
So yes, the numbers may look tight, but the strategy screams bold. The company’s new-age narrative revolves around green fibres, sustainable yarns, and renewable power, positioning it for a textile future that’s not just about cotton — it’s about conscience.
3. Business Model – WTF Do They Even Do?
RSWM is in the business of making what you’re probably wearing right now. They produce green fibres, yarns, knitted fabrics, and denim — essentially everything except the guilt of buying fast fashion.
Let’s decode it:
- Yarn Division – The bread and butter (or warp and weft) of RSWM. They make synthetic, blended, and mélange yarns under fancy
- brands like ULTIMA® and Kapaas (the latter being their premium combed compact yarn line). FY25 saw yarn production at a whopping 177,416 MT with 90%+ utilization. That’s enough thread to wrap around Earth several times — and still have extra for export packaging.
- Denim Division – The company’s denim fabric capacity stands at 32.4 million metres per annum, running at 90% utilization. With over 3,000 denim variants, RSWM’s denim catalog is so vast, even your fashion influencer friend would get confused choosing.
- Knitted Fabrics – Single Jersey, Rib, Fleece, Terry, Pique — sounds like a menu, but it’s actually fabric. Their capacity stands at 9,360+ MT per annum, soon to increase by 20% after the recent ₹92 crore expansion.
- Green Polyester Fibres – This is RSWM’s eco-warrior card. Made from recycled PET bottles, this division plays into the sustainability narrative — so next time you buy an RSWM T-shirt, you’re technically saving the planet (one plastic bottle at a time).
So yes, RSWM’s business model is diversified, globally connected, and slightly addicted to capex — the textile equivalent of a tech startup buying every new gadget just to “stay innovative.”
4. Financials Overview
| Metric | Latest Qtr (Sep FY26) | YoY Qtr (Sep FY25) | Prev Qtr (Jun FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,151 | 1,166 | 1,170 | -1.3% | -1.6% |
| EBITDA (₹ Cr) | 72.4 | 38.1 | 72.8 | 90% | -0.5% |
| PAT (₹ Cr) | 7.43 | -17.6 | 8.37 | 142% | -11% |
| EPS (₹) | 1.58 | -3.73 | 1.78 | — | -11% |
Commentary:
So, in short — sales are flat, profits doubled, margins improved, and investors are still yawning. The OPM rose to 6.3%, the highest in the last 12 quarters, indicating someone in the finance team finally discovered Excel macros. PAT of ₹7.43 crore may look small, but considering last year was a loss-making mess, it’s like watching a spinner score a fifty.
EBITDA at ₹72 crore means the looms are humming fine, though depreciation and interest (₹70 crore combined) continue to eat into the profits like termites on old accounting books.
5. Valuation Discussion – Fair Value Range Only
Let’s do some educated number crunching (with sarcasm included).
Method 1: P/E Multiple
- Current EPS (TTM): ₹1.71
- Industry P/E: ~20
- Fair Value = ₹1.71 × 20 = ₹34.2
But current price is ₹155. Conclusion: the stock market clearly has more faith than auditors.
Method 2: EV/EBITDA
- EV =
