India's RSWM swings to profit in Q1 FY26 despite revenue decline

RSWM Ltd (Rajasthan Spinning & Weaving Mills) has reported revenue of ₹1,169 crore (~$133.32 million) for the first quarter of fiscal 2026 (FY26), ended June 30, 2025, marking a modest 3.2 per cent year-on-year decline, primarily due to subdued export demand.

Despite the slight dip in revenue, gross profit improved by 1.3 per cent YoY to ₹440 crore, with gross margin rising to 37.3 per cent—an increase of 152 basis points compared to the same quarter last year and 307 bps over the previous quarter. This margin improvement was driven by better cost optimisation measures and a more profitable product mix.

EBITDA for the quarter surged by 50.6 per cent YoY to ₹81 crore, with EBITDA margin expanding to 6.9 per cent, up 243 bps YoY and 63 bps quarter-on-quarter (QoQ), RSWM said in a release.

Most notably, RSWM swung to a net profit of ₹7 crore (~$797,870) in Q1 FY26, marking a turnaround from a loss of ₹13.7 crore in the same period last year. The PAT margin improved to 0.6 per cent, reversing last year’s negative margin and increasing 46 bps sequentially.

The company continues to focus on strategic growth through operational streamlining, waste reduction, and tighter financial discipline. With an emphasis on higher-margin synthetic yarns, export-led growth, and lean inventory management, RSWM aims to strengthen cash flow and profitability. It is also positioning itself to benefit from evolving global trade dynamics, including the India–UK Free Trade Agreement, which provides tariff advantages, and the ongoing India–EU trade discussions that could enhance sustainable export opportunities. However, it remains vigilant amid geopolitical uncertainties, the release added.

“FY26 will be a pivotal year for the Indian textile sector as global dynamics evolve. The India–UK FTA marks a key milestone, placing India on par with global competitors in the UK apparel market. The ongoing India–EU FTA signals a major opportunity, as the EU’s focus on ESG-aligned sourcing aligns with India’s strengths in organic cotton, handloom textiles, and recycled fibres. European buyers are increasingly seeking responsible, high-value sourcing, further strengthening India’s regional relevance,” said Riju Jhunjhunwala, CMD of RSWM Limited.

"Looking ahead, our focus remains on enhancing operational agility, advancing ESG objectives, and expanding global presence. With continued policy support, progressive trade agreements, and strong customer engagement, RSWM is poised to become a leading force in the global textile value chain. We remain committed to innovation, sustainability, and delivering long-term value to all stakeholders,” Jhunjhunwala added.

ALCHEMPro News Desk (HU)