RSWM Limited, a flagship company of the LNJ Bhilwara Group, reported a consolidated net profit of Rs. 19.65 crore (US $2.06 million) for the quarter ended June 30 (Q1 FY ’27), marking a 135% increase from Rs. 8.37 crore (US $0.88 million) in the corresponding period of FY ’26.
Standalone net profit rose even more sharply by 140% to Rs. 16.74 crore (US $1.75 million) from Rs. 6.96 crore (US $0.73 million). The significant bottom-line growth was achieved despite revenue from operations remaining largely stable at Rs. 1,161.24 crore (US $121.50 million).
Gross profit increased to Rs. 465.6 crore (US $48.71 million), with gross margin improving to 39.80%, an expansion of 253 basis points year-on-year. EBITDA rose to Rs. 8.50 crore (US $0.89 million), with EBITDA margin strengthening to 7.32% from 5.94% in Q1 FY ’26. Total expenses declined by 2.17% on a standalone basis and 2.40% on a consolidated basis, contributing significantly to the margin expansion.
The yarn segment remained the primary profit driver, generating revenue of Rs. 992.94 crore (US $10.39 million) and a pre-tax profit of Rs. 59.39 crore (US $6.21 million), up from Rs. 26.51 crore (US $2.77 million) in Q1 FY ’26. This performance was supported by the company’s focus on value-added products such as ‘Kapaas’, a premium combed compact yarn.
In contrast, the fabric segment recorded revenue of Rs. 283.42 crore (US $2.97 million) but incurred a pre-tax loss of Rs. 0.50 crore (US $0.05 million), reversing a profit of Rs. 15.90 crore (US $1.66 million) in the same period last year.
The denim segment continues to face headwinds, while the newer knitted fabric unit is undergoing capacity upgrades.
RSWM has acquired 100% equity shareholding in LNJ GreenPET Private Limited for a total consideration of Rs. 20.01 crore (US $2.09 million), paid in cash.
LNJ GreenPET is a greenfield project located on approximately 44 acres of land in Ratlam, Madhya Pradesh, aimed at manufacturing food-grade recycled PET chips and granules.
Commercial production is expected to commence in Q1 FY ’28. To support this and other corporate purposes, the company proposes to raise Rs. 36.06 crore (US $3.77 million) through the issuance of 24.70 lakh convertible warrants to the promoter group, LNJ Textiles Advisory LLP, at Rs. 146 (US $1.53) per warrant.
Additionally, RSWM is expanding its knitting operations with a Rs. 92 crore (US $9.63 million) investment to upgrade machinery from Birla Advanced Knits Private Limited. The investment is aimed at enhancing production efficiency and scaling up knitted fabric capabilities, with completion expected by H1 FY ’27. Benefits from the upgrade are likely to reflect from Q3 FY ’27 onwards.
The Board had previously approved the incorporation of a joint venture, LNJ NDS9 Global Private Limited, for a denim garment manufacturing facility at a project cost of Rs. 186.30 crore (US $19.49 million).
