RSWM's September-quarter profit rises to Rs 25.58 crore

RSWM Limited reported consolidated net profit of Rs 25.58 crore for the quarter ended September 30, 2026, compared with Rs 7.43 crore a year earlier, as revenue from operations increased to Rs 1,322.29 crore from Rs 1,151.05 crore. The result included a Rs 11.50 crore exceptional provision related to an electricity-duty dispute.

How did RSWM perform in the September 2026 quarter?

RSWM’s consolidated profit after tax rose by Rs 18.15 crore year on year to Rs 25.58 crore in the September 2026 quarter, while it increased from Rs 19.65 crore in the preceding June 2026 quarter. Revenue from operations rose by Rs 171.24 crore from the year-earlier quarter and by Rs 161.05 crore sequentially, reaching Rs 1,322.29 crore.

Profit before tax and share of associate profit was Rs 35.79 crore, versus Rs 11.21 crore in September 2025 and Rs 27.31 crore in June 2026. Consolidated earnings per share, not annualised for quarterly periods, were Rs 5.43 basic and Rs 5.35 diluted, compared with Rs 1.58 each a year earlier. Half-year consolidated profit after tax was Rs 45.23 crore, against Rs 15.80 crore in the previous corresponding half year.

The quarter’s total comprehensive income was Rs 179.96 crore, higher than net profit because it included other comprehensive income of Rs 154.38 crore. That item principally reflected an unrealised fair-value gain and was separate from the Rs 25.58 crore reported profit after tax. The board approved the unaudited results on November 2, 2026, after review by the Audit Committee.

Which RSWM segments drove the quarterly result?

RSWM’s yarn segment produced a consolidated result of Rs 88.64 crore before interest and tax in the September 2026 quarter, up from Rs 31.91 crore a year earlier and Rs 63.43 crore in June 2026. Fabric recorded a Rs 5.25 crore segment loss, compared with a Rs 12.47 crore profit in September 2025 and a Rs 0.50 crore loss in the preceding quarter.

Yarn segment revenue was Rs 1,147.39 crore, compared with Rs 984.38 crore a year earlier, while fabric revenue rose to Rs 307.83 crore from Rs 258.80 crore. Total segment revenue was Rs 1,455.22 crore, but inter-segment revenue of Rs 132.93 crore was eliminated to arrive at revenue from operations of Rs 1,322.29 crore. The group also recorded a Rs 0.07 crore result from food-grade recycled polyethylene terephthalate, or rPET, chips.

Consolidated segment profit before interest and tax totalled Rs 83.46 crore, compared with Rs 44.38 crore in the year-earlier quarter. Finance cost was Rs 32.68 crore, leaving Rs 47.29 crore before tax, exceptional items and associate share, versus Rs 10.80 crore a year earlier. Other unallocable expenditure net of income was Rs 3.49 crore, compared with unallocable income of Rs 1.81 crore in September 2025.

What affected RSWM’s reported profit and comprehensive income?

RSWM recognised an exceptional provision of Rs 11.50 crore in the September 2026 quarter in relation to the electricity-duty exemption dispute on captive solar-power generation. The Rajasthan High Court decided the matter against the petitioners on April 6, 2026, and RSWM said it had filed a Special Leave Petition before the Supreme Court. After the balance-sheet date, it deposited Rs 7.42 crore under protest and without prejudice to its rights and contentions.

Before the Rs 11.50 crore exceptional item, consolidated profit before tax was Rs 47.29 crore, compared with reported profit before tax of Rs 35.79 crore. The previous corresponding quarter had no exceptional item. RSWM described the provision as prudent while the Supreme Court matter remains pending adjudication, and the filing does not state a final outcome for the dispute.

Other comprehensive income was affected by a Rs 176.72 crore unrealised gain on fair valuation of equity investments during the half year ended September 30, 2026, excluding deferred tax. This included a Rs 180.78 crore unrealised gain in the September quarter on shares received through the composite scheme involving HEG Advanced Materials Limited, HEG Limited and Bhilwara Energy Limited, effective September 1, 2026. The September-quarter comprehensive-income figure therefore differs from operating and net profit.

What do RSWM’s cash flow and balance sheet show?

RSWM generated Rs 207.38 crore of consolidated operating cash flow in the first half of financial year 2027, compared with Rs 300.80 crore in the corresponding prior-year period. Operating profit before working-capital changes increased to Rs 195.79 crore from Rs 157.48 crore, but trade receivables rose by Rs 111.10 crore and inventories increased by Rs 12.05 crore, using cash.

Consolidated investing cash outflow was Rs 232.08 crore, compared with Rs 37.67 crore a year earlier, including Rs 251.85 crore for property, plant, equipment and intangible assets including capital advances. Financing activities generated Rs 27.60 crore, compared with an outflow of Rs 267.96 crore in the prior period, as Rs 180.01 crore of borrowing proceeds exceeded Rs 102.91 crore of repayments. Closing cash and cash equivalents stood at Rs 8.26 crore, compared with Rs 5.50 crore a year earlier.

Total consolidated assets were Rs 4,029.90 crore at September 30, 2026, compared with Rs 3,617.22 crore at March 31, 2026. Long-term borrowings increased to Rs 726.05 crore from Rs 648.95 crore, while current borrowings rose to Rs 1,023.11 crore from Rs 1,014.67 crore. Trade receivables of Rs 741.62 crore exceeded the March 2026 balance of Rs 630.52 crore, consistent with the half-year working-capital movement.

Conclusion

RSWM’s September-quarter result combined higher revenue and higher profit after tax, led by the yarn segment’s Rs 88.64 crore result. Fabric revenue rose to Rs 307.83 crore but the segment recorded a Rs 5.25 crore loss, while the Rs 11.50 crore exceptional provision reduced reported pre-tax profit. Half-year operating cash flow was Rs 207.38 crore, although receivables and investment spending absorbed funds.

The disclosed matters to watch next are the Supreme Court’s adjudication of the electricity-duty dispute, following RSWM’s Rs 7.42 crore deposit under protest, and the development of LNJ NDS9 Global Private Limited. RSWM holds 74% of that subsidiary, incorporated on August 20, 2026, and the filing says its denim and knit-garment project cost was revised to about Rs 208.26 crore, with completion indicated within 12 months.