Any current/future capex/capital investment/strategic investment?

Knit fabric expansion: ₹92 Cr Capex progressing in phased manner; expected fully operational by H1 FY 2027. Modernization Capex: Approximately ₹50 Cr spent last year; similar levels expected for next 2-3 years focused on improving power efficiency, digitalization, quality, and productivity with payback in 12-24 months. Renewable energy investment: ₹60 Cr equity paid for group captive solar power project with Adani; additional ₹22-25 Cr planned for 9.6 MW behind-the-meter solar installation. LNJ GreenPET project: Total cost ₹427 Cr; funded 70:30 debt to equity/internal accrual; revenue po

Future growth expectations in earnings/operating earnings/profits/EPS?

RSWM targets around ₹5,000 Cr revenue by FY 2026-27, implying approx. 10% growth from the current ₹3,400 Cr (Page 17). Focus on better capacity utilization, especially in knit, mélange, and denim segments (Pages 16-17). EBITDA margin improvement aimed toward double-digit levels (10-11%) within 6-8 quarters, supported by tariff benefits and efficient cost control (Page 15). EBITDA margins improved to 7.4% in Q3 FY26, up from 4.8% YoY, reflecting structural improvements expected to sustain (Pages 5-6). Profit After Tax (PAT) turnaround observed: Q3 FY26 PAT at ₹4 Cr (excluding a one-time

Current/ Expected Orderbook/ Pending Orders?

The company is seeing improved demand visibility following global supply chain realignment and trade agreements. Order inflows were soft in most of 2025 but expected to recover due to tariff reductions under the India-US interim trade framework and India-EU FTA. India-EU FTA effective January 2026 will provide zero tariffs, improving competitiveness and expected to boost orders significantly. Indian textile players expect a CAGR growth of 8%-10% in exports, with import market potential in the EU alone growing from $8 billion to $35-40 billion. The knit fabric expansion targeted to be operation

Future growth expectations in sales/revenue/volumes?

Targeting around ₹5,000 Cr revenue by FY 2026-27, implying approximately 10% growth from current ₹4,500 Cr levels. Growth driven primarily by better capacity utilization in knit, mélange, and denim segments. Major expansion planned in knit capacity with additional production of 200 tonnes. Yarn business operates at high 90%+ capacity utilization; focus is on improving utilization in knit and mélange segments. Stable to improving EBITDA margins expected alongside volume growth. Favorable outlook supported by new FTAs with EU and UK, expected from early next fiscal year. Anticipated CAGR growth

Any current/future new fundraising through debt or equity?

For the LNJ GreenPET project (cost ₹427 Cr), funding is expected at a 70:30 debt-to-equity ratio: - Approximately ₹300 Cr through debt. - ₹127 Cr through internal accruals or equity infusion. The company's capital allocation remains selective and disciplined, focusing on projects with clear returns and shorter payback periods. There is no specific mention of any other immediate debt or equity fundraising. The company aims to maintain a prudent leverage profile with financial flexibility for demand volatility. Modernization Capex of about ₹50 Cr annually is planned, funded mainly through ca

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RSWM LtdQ4 FY27Textiles & Apparels

RSWM Ltd Q4 FY27 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹192P/E: 11.8Market Cap: ₹734 CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 4

Margin

Category 1

Fundraise

Yes

Order

N/A

Capex

Yes

3 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 4

→Targeting around ₹5,000 Cr revenue by FY 2026-27, implying approximately 10% growth from current ₹4,500 Cr levels.
→Growth driven primarily by better capacity utilization in knit, mélange, and denim segments.
→Major expansion planned in knit capacity with additional production of 200 tonnes.
→Yarn business operates at high 90%+ capacity utilization; focus is on improving utilization in knit and mélange segments.
→Stable to improving EBITDA margins expected alongside volume growth.
→Favorable outlook supported by new FTAs with EU and UK, expected from early next fiscal year.
→Anticipated CAGR growth of 8-10% in exports to Europe due to tariff parity.
→Incremental modernization and cost-efficiency projects to support competitive positioning and margins.
→No negative revenue growth expected; emphasis on sustainable, profitable volume growth.

Margin guidance

Category 1

→RSWM targets around ₹5,000 Cr revenue by FY 2026-27, implying approx. 10% growth from the current ₹3,400 Cr (Page 17).
→Focus on better capacity utilization, especially in knit, mélange, and denim segments (Pages 16-17).
→EBITDA margin improvement aimed toward double-digit levels (10-11%) within 6-8 quarters, supported by tariff benefits and efficient cost control (Page 15).
→EBITDA margins improved to 7.4% in Q3 FY26, up from 4.8% YoY, reflecting structural improvements expected to sustain (Pages 5-6).
→Profit After Tax (PAT) turnaround observed: Q3 FY26 PAT at ₹4 Cr (excluding a one-time ₹10 Cr expense) and nine-month PAT at ₹17 Cr, moving from losses in prior periods (Page 6).
→Return on Capital Employed (ROCE) improving, increasing from 3.3% to 5.1%, with aspiration to steadily move back to peak levels (~13%) (Page 16).
→Positive impact anticipated from FTAs with EU and UK, with expected CAGR growth of 8-10% from expanded market access (Page 18).

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Fundraise plans

Yes

→For the LNJ GreenPET project (cost ₹427 Cr), funding is expected at a 70:30 debt-to-equity ratio:
→ - Approximately ₹300 Cr through debt.
→ - ₹127 Cr through internal accruals or equity infusion.
→The company's capital allocation remains selective and disciplined, focusing on projects with clear returns and shorter payback periods.
→There is no specific mention of any other immediate debt or equity fundraising.
→The company aims to maintain a prudent leverage profile with financial flexibility for demand volatility.
→Modernization Capex of about ₹50 Cr annually is planned, funded mainly through cash flow.
→No explicit plans for fresh equity fundraise were outlined during the call.

Order book

→The company is seeing improved demand visibility following global supply chain realignment and trade agreements.
→Order inflows were soft in most of 2025 but expected to recover due to tariff reductions under the India-US interim trade framework and India-EU FTA.
→India-EU FTA effective January 2026 will provide zero tariffs, improving competitiveness and expected to boost orders significantly.
→Indian textile players expect a CAGR growth of 8%-10% in exports, with import market potential in the EU alone growing from $8 billion to $35-40 billion.
→The knit fabric expansion targeted to be operational by H1 FY2027 will help access new orders in fashion-intensive segments like kidswear, women’s wear, and loungewear.
→Political and geopolitical improvements are expected to aid better capacity utilization and revenue growth, impacting order book positively.
→No explicit numerical data on current or pending order book shared, but outlook is optimistic for order recovery and growth.

Capex plans

Yes

→Knit fabric expansion: ₹92 Cr Capex progressing in phased manner; expected fully operational by H1 FY 2027.
→Modernization Capex: Approximately ₹50 Cr spent last year; similar levels expected for next 2-3 years focused on improving power efficiency, digitalization, quality, and productivity with payback in 12-24 months.
→Renewable energy investment: ₹60 Cr equity paid for group captive solar power project with Adani; additional ₹22-25 Cr planned for 9.6 MW behind-the-meter solar installation.
→LNJ GreenPET project: Total cost ₹427 Cr; funded 70:30 debt to equity/internal accrual; revenue potential ₹475-500 Cr, ramping up over 2-3 years.
→Industry 4.0: Investment in digital tools and automation through SaaS partner Green Stitch for sustainability and operational efficiency.
→Continuous evaluation and phased replacement of older machinery based on payback and efficiency improvements.

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