Swaraj Suiting Ltd H1FY26 – From Bhilwara to Blue Jeans Billionaire: The 43 Million Meter Fabric Symphony Nobody Saw Coming

1. At a Glance

Swaraj Suiting Ltd (NSE: SWARAJ) is the rare Bhilwara textile that didn’t stop at weaving dreams — it went ahead and dyed them Indigo Blue. As of November 2025, this Rs.557 croremarket-cap textile beast is strutting around in full denim swagger. The stock, priced at ₹253, has clocked a46.2% 3-month rally, while denim enthusiasts and investors are still trying to spell “Polyester Viscose” correctly. The company reportedH1FY26 Sales of ₹204 croreand aPAT of ₹17.9 crore, flaunting anROE of 25.6%andROCE of 18.1%— numbers that could make even Raymond raise an eyebrow.

Debt? Oh yes — ₹332 crore of it, but hey, every denim legend needs a little stretch. WithEBITDA margin at 21.9%and quarterly profit growth of80.9%, Swaraj Suiting is now spinning, dyeing, and laughing all the way to the bank. No dividends, no problem — who needs payouts when the looms are printing money (and jeans) at full speed?

2. Introduction – The Bhilwara Textile That Grew Up Into Denim Royalty

Once upon a time in Bhilwara, Rajasthan — a town where 90% of people know what a loom is — Swaraj Suiting began life in 2003 as a humble fabric producer. Two decades later, it’s the kind of vertically integrated textile player that’s giving industrial design engineers nightmares. From spinning to finishing, they’ve now covered the whole textile chain like a Bollywood hero covering all genres.

But here’s the punchline: Swaraj didn’t just stop at polyester viscose suiting — it went full rockstar with denim. After acquiringModway Suiting Pvt Ltdin 2019, it launched“Swaraj Denim”, a brand aimed at becoming the H&M supplier that doesn’t cry during raw material price swings.

FY25 was a blockbuster — new spinning units, new processing houses, and a new obsession with expansion. Management clearly took “dress for success” too literally. With clients likeZara, Mango, Reliance Trends, and Mufti, this company is now dressing half of India — and perhaps your favorite jeans too.

The latest chapter: an aggressivepreferential issue worth ₹263.69 crore(43.76 lakh shares + 67.97 lakh warrants) to fund expansion and working capital. Because in textile land, more spindles mean more swagger.

3. Business Model – WTF Do They Even Do?

Swaraj Suiting’s business model is like a textile buffet — a bit of everything, all under one air-jet-loom-filled roof.

They manufacturedenim fabrics,polyester viscose fabrics, andcustom-developed denimthat even international fashion houses fancy. Their operations stretch across:

• Yarn Dyeing Division (Neemuch, MP)– Three Indigo dyeing ranges;36 million metersannual capacity.
• Weaving Division (Bhilwara & Neemuch)–195 air-jet loomsproducing27 million metersof greige cotton.
• Cotton Spinning Unit (New, FY25)–7,296 tonnes per annumcapacity; a move towards backward integration.
• Denim Process House (FY25)–25 million meters per annumof finished denim fabric.
• Cotton Process House (FY25)–18 million meters per annumof finished cotton.

Add that up, and you get a mind-numbing70 million+ metersof total capacity — enough to wrap the whole of Jaipur twice.

The genius is in the integration — Swaraj makes its own yarn, dyes it, weaves it, and finishes it in-house. No third-party delays, no quality tantrums — just pure, continuous textile jazz.

Clients likeZara, Mufti, H&M, Mango, andJohn Playersdon’t shop here — they source here. That’s the level.

4. Financials Overview (Half-Yearly Data – Consolidated Figures in ₹ Crore)

Data Type:Half-Yearly Results (H1FY26)

Annualised EPS = ₹8.14 × 2 = ₹16.28→P/E ≈ 15.5xat CMP ₹253.

If denim could talk, it’d say “I’m premium, but not overpriced.”

Despite a heavy capex cycle, EBITDA doubled YoY — clear evidence that expansion is not just for show. The QoQ dip is seasonal (and also because FY25’s March quarter was ridiculously strong).

5. Valuation Discussion – Fair Value Range Only

Method 1: P/E Method

Industry P/E: 19.6Company P/E: 13.5Annualised EPS: ₹16.28

• Lower Range:₹16.28 × 12