R&B Denims Q2 profit rises 57% as revenue increases 33%

R&B Denims Limited reported consolidated profit of Rs 11.19 crore for the quarter ended September 30, 2026, up 57% year on year, as revenue from operations rose 33% to Rs 149.24 crore. The Board approved the unaudited results on November 5, 2026, following an unmodified limited review.

What did R&B Denims report for the September quarter?

R&B Denims reported total income of Rs 155.76 crore for the September 2026 quarter, compared with Rs 115.56 crore in the September 2025 quarter. Revenue from operations accounted for Rs 149.24 crore of the latest total, while other income was Rs 6.52 crore, versus Rs 2.93 crore a year earlier.

Profit before tax rose to Rs 13.62 crore from Rs 9.32 crore in the comparable quarter, and tax expense was Rs 2.43 crore versus Rs 2.19 crore a year earlier. As a result, profit for the period increased by Rs 4.06 crore year on year to Rs 11.19 crore. There were no exceptional items or discontinued operations in either quarter.

The figures are consolidated, covering R&B Denims and its subsidiaries and partnership firms: RB Industries, RICON Industries and Ricon Textile Limited. The statutory auditor issued an unmodified limited-review conclusion on the September-quarter statement, which was prepared under Indian Accounting Standard 34, Interim Financial Reporting.

How did R&B Denims’ earnings change from the June quarter?

R&B Denims’ profit for the September 2026 quarter was Rs 11.19 crore, compared with Rs 4.38 crore in the June 2026 quarter. Profit before tax more than doubled from Rs 6.04 crore to Rs 13.62 crore over the sequential period, while total income rose from Rs 122.55 crore to Rs 155.76 crore.

Revenue from operations rose by Rs 29.91 crore sequentially, from Rs 119.34 crore in June to Rs 149.24 crore in September. Sales of products and services increased to Rs 146.95 crore from Rs 116.89 crore, whereas other operating revenue declined to Rs 2.29 crore from Rs 2.44 crore.

Basic and diluted earnings per share were Rs 0.22 for the September quarter, compared with Rs 0.17 in June and Rs 0.26 a year earlier. R&B Denims said earnings per share for all periods shown were retrospectively adjusted for the April 2026 share split and bonus element, which affects per-share comparisons despite the increase in quarterly profit.

Which costs shaped R&B Denims’ September-quarter earnings?

R&B Denims’ total expenses were Rs 142.13 crore in the September quarter, up from Rs 106.24 crore a year earlier but below total income of Rs 155.76 crore. Cost of materials consumed was Rs 76.01 crore, compared with Rs 73.38 crore in the September 2025 quarter, while purchases of stock-in-trade were Rs 31.90 crore against no amount reported in that line a year earlier.

Inventory changes were an expense of Rs 9.00 crore in the latest quarter, versus Rs 5.65 crore in the prior-year quarter. Employee-benefit expense rose to Rs 7.34 crore from Rs 6.82 crore, and depreciation and amortisation increased to Rs 5.50 crore from Rs 3.75 crore.

Finance costs fell to Rs 1.33 crore from Rs 1.85 crore year on year, while other expenses declined to Rs 11.07 crore from Rs 14.79 crore. These movements occurred alongside the rise in total income, producing a Rs 4.30 crore year-on-year increase in profit before tax to Rs 13.62 crore.

Why was R&B Denims’ first-half profit growth lower than Q2 growth?

R&B Denims’ profit for the half year ended September 30, 2026 was Rs 15.57 crore, only modestly above Rs 15.36 crore in the corresponding 2025 half year. The contrast with the 57% rise in September-quarter profit reflects the June-quarter result of Rs 4.38 crore, compared with Rs 8.23 crore in the June 2025 quarter implied by the reported first-half and September-quarter figures.

First-half revenue from operations nonetheless increased to Rs 268.58 crore from Rs 215.24 crore, while total income rose to Rs 278.30 crore from Rs 224.11 crore. Profit before tax declined to Rs 19.66 crore from Rs 20.70 crore because first-half expenses increased to Rs 258.64 crore from Rs 203.41 crore.

Material consumption for the six months was Rs 176.71 crore, up from Rs 144.47 crore, and purchases of stock-in-trade were Rs 37.49 crore compared with nil in the prior-year half. Finance costs, however, declined to Rs 3.03 crore from Rs 3.91 crore, while depreciation and amortisation rose to Rs 9.67 crore from Rs 7.53 crore.

What do R&B Denims’ balance sheet and cash flows show?

R&B Denims had total assets of Rs 370.15 crore on September 30, 2026, compared with Rs 356.30 crore on March 31, 2026. Total equity was Rs 254.42 crore and total liabilities were Rs 115.73 crore, versus Rs 252.12 crore and Rs 104.18 crore, respectively, at the prior financial year-end.

Current borrowings rose to Rs 67.82 crore from Rs 55.44 crore, while non-current borrowings declined to Rs 15.80 crore from Rs 16.46 crore. The reported debt-equity ratio was 0.33 at September 30, 2026, compared with 0.40 a year earlier and 0.29 at March 31, 2026.

Net cash from operating activities during the half year was Rs 26.69 crore, up from Rs 8.68 crore in the corresponding 2025 period. Investing activities used Rs 23.69 crore, including Rs 22.88 crore for property, plant, equipment and capital work-in-progress, while cash and cash equivalents ended the period at Rs 19.02 lakh versus Rs 1.79 crore at March 31, 2026.

How did the April 2026 share actions affect R&B Denims?

R&B Denims split its equity shares from a face value of Rs 2 each to Re 1 each with effect from April 2, 2026. The company then allotted 89,973,440 fully paid bonus shares in a 1:2 ratio on April 6, 2026 through capitalisation of securities premium.

Paid-up equity share capital consequently increased to Rs 26.99 crore at September 30, 2026 from Rs 17.99 crore previously. R&B Denims said it retrospectively adjusted the weighted average shares used for basic and diluted earnings per share under Indian Accounting Standard 33, Earnings per Share, for both the split and bonus issue.

Conclusion

R&B Denims’ September-quarter results showed improvement over both the prior-year and June quarters, with revenue from operations reaching Rs 149.24 crore and profit for the period at Rs 11.19 crore. The half-year comparison was more restrained, with profit at Rs 15.57 crore versus Rs 15.36 crore a year earlier despite a Rs 53.34 crore increase in revenue from operations.

The next results will show whether September-quarter profit and revenue momentum continues after higher first-half purchases of stock-in-trade and a Rs 22.88 crore half-year investment in property, plant, equipment and capital work-in-progress. Investors can also track current borrowings, which were Rs 67.82 crore at September 30, 2026, and cash and cash equivalents of Rs 19.02 lakh.