RSWM posted a strong Q2 FY27, with revenue climbing to Rs 1,322 crore and EBITDA rising 47.1% year-on-year to Rs 116 crore. The company is pushing forward with its 'RSWM 2.0' transformation, focusing on value-added products like premium denim and knit garments, despite headwinds from rising input costs and a recent legal provision for electricity duty.
RSWM Reports Robust Growth in Q2 FY27 With Strategic Expansion
RSWM Limited reported Q2 FY27 revenue of Rs 1,322 crore and an EBITDA of Rs 116 crore.
Reader Takeaway: Strong operational growth and value-added expansion offset by input cost pressures and one-time legal provisions.
What just happened
RSWM delivered a strong performance for the quarter ended September 2026, marking a 15% revenue growth and a 47.1% jump in EBITDA compared to the same period last year. Profit After Tax (PAT) reached Rs 25 crore. This growth comes despite a one-time exceptional provision of Rs 11.5 crore related to electricity duty on captive solar generation following a Rajasthan High Court ruling.
Why this matters
The results highlight the progress of the 'RSWM 2.0' strategy, which prioritizes margins over raw volume. By focusing on differentiated, higher-value products, the company aims to move up the value chain. Strategic investments, including a new 74% stake in a joint venture with Spain-based NDS9, suggest a long-term pivot toward the premium denim and garment space.
Strategic Developments
RSWM is executing three major growth levers:
- Joint Venture: The LNJ NDS9 Global Private Limited partnership targets premium denim and knit manufacturing with a Rs 208 crore phase-one investment.
- Knitting Expansion: A Rs 92 crore project is set for completion by December 2026, adding 250 MT of capacity to support higher-margin production.
- LNJ GreenPET: This bottle-to-bottle recycling initiative is expected to come online in Q1 FY28, with an estimated annual revenue contribution of Rs 200 crore.
Risks to watch
Investors should monitor the company's ability to pass on volatile raw material costs—specifically cotton and polyester—which pressured margins in the fabric division this quarter. Additionally, the execution of new capital expenditure projects remains a key sensitivity for future cash flows. The company currently carries a standalone debt of Rs 1,480 crore, with annual repayment obligations of approximately Rs 180 crore in the coming year.
What to track next
The management remains optimistic that H2 FY27 will outperform H1, provided raw material prices stabilize and the fabric division's profitability recovers. Key monitoring points include the successful commercialization of the NDS9 joint venture and the operational launch of the GreenPET facility.