RSWM Limited Q1 FY27 Earnings Call Transcript Released

RSWM Limited has released the transcript of its Q1 FY27 earnings conference call, which was held on Wednesday, August 5, 2026. The call, initiated by Rik Capital, featured management including JMD Rajeev Gupta, CTO & CRO Manoj Bansal, President & CFO Nitin Tulyani, Chief Compliance Officer & CS Surender Gupta, and Senior General Manager - Corporate Finance Rakesh Jain.

During the call, management discussed the global textile industry's gradual recovery amidst uncertainty, with stabilizing demand in international markets but subdued discretionary consumer spending in developed economies. India's position as a preferred sourcing destination is strengthening due to its manufacturing ecosystem and policy support. Geopolitical developments, including the West Asia conflict, have impacted supply chains and energy costs, particularly affecting synthetic yarn.

Financially, for Q1 FY27, RSWM reported revenue from operations of ₹1,161 crores, a 1.7% sequential growth from Q4 FY26. Gross profit increased to ₹466 crores with margins expanding to 39.8%. EBITDA for the quarter stood at ₹94 crores, a 10.1% sequential growth and a 16.1% year-on-year increase, with EBITDA margins improving to 8%. Profit after tax for Q1 FY27 was ₹17 crores. Management highlighted a focus on product mix optimization, operational excellence, expanding value-added segments, and disciplined cost management under the RSWM 2.0 initiative. Sustainability and innovation, including the LNJ Greenpet's bottle-to-bottle recycling project, remain key strategic priorities.

Key discussions included the progress on graphene-based fiber development, with commercialization expected within the current financial year. A new joint venture for a denim garment unit received board approval, with RSWM as the majority shareholder, and initial phase targeting 5 lakh pieces per month. The company is also developing a food-grade chip project for bottles, aiming for a capacity of 50,000 metric tons per year and an expected revenue of ₹500 crores with an estimated 15% EBITDA margin, with commercial production targeted for Q1 FY28.

Capacity utilization was reported in the mid-90s for yarn businesses (Mélange at 92-93%, synthetic yarn at 96%, cotton yarn at 98%) and in the 90% range for denim fabric, with knit fabric at mid-80s. The company is also expanding its knitting operations with an investment of ₹92 crores, expected to reflect benefits from Q3 FY27 onwards, increasing capacity to 900 tons per month, including 150 tons of printing capacity.