| P/E TTM | 13.31xSector 49.96x |
|---|---|
| Market Cap | ₹842.5 CrSmall Cap |
| RSI | 35.34Neutral Zone |
| 1-Year Return | 16.51%Price Growth |
| Metric | Q2-27 | Q1-27 | Q2-26 |
|---|---|---|---|
| Revenue from Operations | 1,322 | 1,161 | 1,151 |
| Other Income | 9.6 | 8.9 | 9.1 |
| Total Income | 1,332 | 1,170 | 1,160 |
| Profit Before Tax | 35.8 | 27.3 | 11.2 |
| Exceptional Items | -11.5 | 0.0 | 0.0 |
| Net Profit | 25.6 | 19.6 | 7.4 |
| Operating Margin | 2.7% | 2.3% | 1.0% |
| Net Profit QoQ | +30.6% | ||
| Net Profit YoY | +245.9% | ||
| Adj. Profit QoQ | +104.9% | ||
| Adj. Profit YoY | +2,117.6% | ||
Key highlights
- Net profit increased 245.9% YoY to ₹25.6 crore from ₹7.4 crore in the year-ago period
- Revenue from operations grew 14.8% YoY to ₹1,322 crore compared to ₹1,151 crore
- Operating margin expanded to 2.7% in Q2 FY27 from 1.0% in Q2 FY26
- Yarn segment revenue reached ₹1,147.4 crore with segment results of ₹88.6 crore
- Company recognized an ₹11.5 crore provision as an exceptional item following a High Court ruling
- Board revised the Denim Garment project cost to ₹208.26 crore to include a Knit Garments facility
Yarn Segment Powers Operational Recovery
The company's core yarn segment was the primary driver of top-line growth, generating revenue of ₹1,147.39 crore in Q2 FY27 compared to ₹984.38 crore in the corresponding period last year. This operational efficiency was reflected in the yarn segment's profit, which nearly trebled to ₹88.64 crore from ₹31.91 crore YoY. In contrast, the fabric segment faced headwinds, reporting a loss of ₹5.25 crore.
Despite these sectoral variances, consolidated operating margins improved significantly to 2.7%, reflecting better cost absorption and management's earlier guidance regarding power cost savings of approximately ₹40 crore annually starting in FY27.
Expansion and Investment Strategies
- Revised project cost for the Denim Garment facility to ₹208.26 crore from ₹186.30 crore
- Integration of a Knit Garments facility in the first phase to achieve economies of scale
- Approved additional investment of up to ₹46.24 crore in LNJ NDS9 Global Private Limited
- Subscription of up to 4.62 crore equity shares to maintain a 74:26 joint venture ratio
- Grant of 9,70,000 ESOPs at an exercise price of ₹146 per option to eligible employees
Exceptional Charge and Legal Contingencies
Profitability during the quarter was impacted by an exceptional item of ₹11.50 crore. This provision pertains to a Rajasthan High Court ruling dated April 06, 2026, which decided against petitioners regarding electricity duty exemptions on captive solar power generation. While RSWM has filed a Special Leave Petition before the Supreme Court of India, it has deposited ₹7.42 crore under protest.
The company decided to recognize the full provision on a prudent basis pending the final adjudication of the matter by the apex court.
Notes on Subsidiary Performance
- LNJ NDS9 Global Private Limited became a subsidiary effective August 20, 2026
- Consolidated results include a share of profit from associate LNJ Skills & Rozgar Private Limited
- Other Comprehensive Income includes ₹180.78 crore unrealised gain from fair valuation of equity investments
- Cash from operating activities for the half-year stood at ₹207.38 crore
What to watch next
- Earnings conference call scheduled for November 03, 2026, at 4:00 PM IST
- Supreme Court adjudication regarding the electricity duty exemption for captive solar power
- Execution milestones for the expanded Denim and Knit Garments facility within 12 months
- Implementation of annual power cost savings of ₹40 crore through FY27
| Share price | ₹178.87 |
|---|---|
| Market capitalisation | ₹842.51 Cr |
| Revenue (annual) | ₹4,554.13 Cr |
| Net profit (annual) | ₹52.01 Cr |
| Revenue (latest quarter) | ₹1,161.24 Cr+1.69% vs previous quarter |
| Net profit (latest quarter) | ₹19.65 Cr-41.93% vs previous quarter |
| P/E (TTM) | 13.31×Sector 49.96× |
| Promoter holding | 55.69%0.00% QoQ |
| FII holding | 0.73%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by RSWM Ltd announcing the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. Market figures from a third-party data provider.
