RSWMNSEQ4 & FY26May 7, 2026

RSWM Limited

7,703words

88turns

8analyst exchanges

3executives

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Management on call

Rajeev Gupta

Joint Managing

Manoj Bansal

Chief Transformation and Chief Risk Officer,

Nitin Tulyani

President and CFO, Mr. Surender Gupta – Chief

Key numbers — 40 extracted

rs,

textile landscape remains complex due to continuous challenges on account of geopolitical factors, I am pleased to share that we have navigated these headwinds with resilience and could turn around

70%

last conference call, having a tie-up with Adani round- the-clock power, we are now having around 70% of our energy mix coming from sustainable sources like wind and solar, and this continues to be a

24.7 lakh

rectors in April approved a proposal for the infusion of equity through the preferential issue of 24.7 lakh Convertible Warrants, which are equivalent to almost 36 crore, to LNJ Textile Advisory, LLP, wh

36 crore

through the preferential issue of 24.7 lakh Convertible Warrants, which are equivalent to almost 36 crore, to LNJ Textile Advisory, LLP, which is a Promoter Group company of LNJ Bhilwara Group. This sh

₹1,142 crore

uct category. Coming to the financial performance for Q4 FY26, revenue from operations stood at ₹1,142 crores, registering quarter-over-quarter growth of 4.5%, while declining 9.1% year-over-year, primarily

4.5%

FY26, revenue from operations stood at ₹1,142 crores, registering quarter-over-quarter growth of 4.5%, while declining 9.1% year-over-year, primarily due to weaker export demand. Our exports showed

9.1%

ations stood at ₹1,142 crores, registering quarter-over-quarter growth of 4.5%, while declining 9.1% year-over-year, primarily due to weaker export demand. Our exports showed a recovery of 11.4% qua

11.4%

ning 9.1% year-over-year, primarily due to weaker export demand. Our exports showed a recovery of 11.4% quarter-over-quarter at ₹368 crores, indicating early signs of improvement. Our domestic sales

₹368 crore

ily due to weaker export demand. Our exports showed a recovery of 11.4% quarter-over-quarter at ₹368 crores, indicating early signs of improvement. Our domestic sales remain relatively stable at ₹774 cror

₹774 crore

368 crores, indicating early signs of improvement. Our domestic sales remain relatively stable at ₹774 crores, reflecting resilience in the domestic market despite overall demand softness. Power and fuel

₹123.3 crore

esilience in the domestic market despite overall demand softness. Power and fuel costs stood at ₹123.3 crores in Q4, reflecting a sequential decline of ₹4.6 crores from ₹127.9 crores in Q3 FY26, driven by t

₹4.6 crore

softness. Power and fuel costs stood at ₹123.3 crores in Q4, reflecting a sequential decline of ₹4.6 crores from ₹127.9 crores in Q3 FY26, driven by the improved utilization for the renewable sources of e

Guidance — 20 items

Rajeev Gupta

opening

“It is my pleasure to welcome you to the RSWM Q4 and FY26 Earnings Conference Call, and we sincerely appreciate your continued interest and participation.”

Rajeev Gupta

opening

“As you all know, the past year, the year FY26, has been a period of strategic transformation and disciplined execution for RSWM.”

Rajeev Gupta

opening

“While the global textile landscape remains complex due to continuous challenges on account of geopolitical factors, I am pleased to share that we have navigated these headwinds with resilience and could turn around company performance, which is evident from the results shared yesterday for FY25-26.”

Rajeev Gupta

opening

“As we step into FY27, we do so with a cautious but confident outlook.”

Rajeev Gupta

opening

“As I mentioned earlier, FY26 has been a turnaround year for RSWM, where we could move from a negative PAT to a positive PAT.”

Rajeev Gupta

opening

“So this significant improvement, we are sure we will be able to carry this forward, and this will further strengthen our financial position for FY26-27, through our financial prudence, strong operational controls, and growth-oriented initiatives.”

Rajeev Gupta

opening

“I would like to thank all the members of the RSWM family for their dedicated effort during this full year, FY25-26, the Board of Directors for the timely advice, the confidence of our valued shareholders, and the support of our chairman, which enabled us to turn around this Company in this year.”

Nitin Tulyani

opening

“Coming to the financial performance for Q4 FY26, revenue from operations stood at ₹1,142 crores, registering quarter-over-quarter growth of 4.5%, while declining 9.1% year-over-year, primarily due to weaker export demand.”

Nitin Tulyani

opening

“Power and fuel costs stood at ₹123.3 crores in Q4, reflecting a sequential decline of ₹4.6 crores from ₹127.9 crores in Q3 FY26, driven by the improved utilization for the renewable sources of energy.”

Nitin Tulyani

opening

“On a year-on-year basis, costs were marginally lower by ₹1.5 crores, compared to ₹124.7 crores in Q4 FY25, indicating a stable input cost management despite the external volatility.”

Risks & concerns — 15 flagged

Manoj Bansal – Chief Transformation and Chief Risk Officer, Mr.

— Richa Singh

It must be viewed in conjunction with the risk that the business faces that could cause or differ from future results and performance, which is expressed or implied by such forward- looking statements.

— Richa Singh

Discretionary spending, especially in Western countries, continues to be cautious, which is impacting overall demand.

— Rajeev Gupta

tariffs is a concern which all of us know.

— Rajeev Gupta

The recent impact of the Gulf War is also very significant.

— Rajeev Gupta

Another key concern has been energy availability, especially gas.

— Rajeev Gupta

As we step into FY27, we do so with a cautious but confident outlook.

— Rajeev Gupta

Power and fuel costs stood at ₹123.3 crores in Q4, reflecting a sequential decline of ₹4.6 crores from ₹127.9 crores in Q3 FY26, driven by the improved utilization for the renewable sources of energy.

— Nitin Tulyani

Coming to the Full Year ‘26 financial performance, our revenue from operations was ₹4,554 crores, reflecting a year-on-year decline of 5.6%, primarily impacted by the weak demand conditions, particularly in the first half.

— Nitin Tulyani

And then this disturbance in the Gulf between Iran and Israel put many things for challenge, particularly the availability of gas, and then transportation period for export, freight cost 7 | P a g e for export to these countries, dyes and chemical costs.

— Rajeev Gupta

So, that is a challenge, and we expect this to resolve.

— Rajeev Gupta

Sir, could you quantify the PAT impact of the deferred tax reversal in Quarter 4 and help us understand the normalised earnings trend rate going forward?

— Rishabh Sharma

So, if you want to understand the PAT, overall, there is an impact of ₹23 crores for the deferred tax liability, which we reversed.

— Nitin Tulyani

And the revenue decline has been sharper than the industry expectations over the last few quarters.

— Rishabh Sharma

See, regarding the Adani Power, we are anticipating the impact of almost ₹1 per unit in the overall reduction.

— Manoj Bansal

Q&A — 8 exchanges

Namaskar, Sir. Thank you, sir, firstly for the opportunity. And as you mentioned, we have laid the foundation for improving our return ratios going ahead. So, in context to that, sir, if you could give us some colour on what will bring that rate of change in terms of improved profitability and in terms of how the utilisation levels are currently, and what we are anticipating going ahead, firstly.

Rajeev Gupta

So if I could gather you right, you are talking about the utilisation of the plant operations. And what exactly are we expecting when we are alluding to the fact that our visibility will be improving on our profitability going ahead? Ok, so the year under discussion, particularly Quarter 4, has been really, really challenging for the entire textile industry. Needless to mention, this U.S. tariff was already creating a lot of issues. And then this disturbance in the Gulf between Iran and Israel put many things for challenge, particularly the availability of gas, and then transportation period f

Yes. Hi. Good evening. First, congrats, Mr. Rajeev and the entire RSWM team, on delivering a very good set of numbers, even though it was a very challenging period. So, I just wanted to say kudos to you all. So, my first question, I just want to know, in your spinning division, what percentage is currently structurally not viable at the current yarn and cotton spread? And 9 | P a g e what are the plans for those divisions? Are you looking at shutting it down, or are you looking to continue to operate it, but maybe at lower levels? Can you help me understand that?

Rajeev Gupta

So, I appreciate your continued discussions from the last investor's call we had. Last time, we discussed that we'll cut down certain operations, spindles or the products where we are not able to have the right margins. So, we did that as we discussed in the last conference call, also. Operations of Chhata spinning were curtailed, which was having inefficient production, and we were not able to clock the required margins there. A few other products within the businesses were changed for the better products where the margins were there. A lot of work has been done on product mix and elevating t

Hello. Thank you for the opportunity. Sir, could you quantify the PAT impact of the deferred tax reversal in Quarter 4 and help us understand the normalised earnings trend rate going forward? 11 | P a g e

Nitin Tulyani

So, if you want to understand the PAT, overall, there is an impact of ₹23 crores for the deferred tax liability, which we reversed. If we had opted for the existing income tax rates, we would have closed the PAT at ₹29 crores. And this is clearly given in the notes to accounts, also if you have gone through the same. Okay. Got it. And the revenue decline has been sharper than the industry expectations over the last few quarters. So, are we losing market share in any categories, or is it a weakness entirely in demand? Okay. So, good that you observed that. I was expecting this question. So, thi

Hi, team. Rajeev ji, Nitin ji, many congrats on this genuine operational turnaround that the company is showing. I hope it is not some cyclical optical recovery, but I think that all the efforts that you are putting in since the last two years or so they tend to be showing fruits right now.

Nitin Tulyani

Thank you, Rohit. So, I have some questions. Very quickly, I will go through them. The first one being that we see this good growth, but in terms of the recovery that is coming through, how much percent would you attribute to maybe product mix or maybe the discounting, which you must be giving lower to the clients or customers? In addition to that, the energy optimisation or inventory discipline, or is it because of the exit of some low-margin businesses? How much percent would you give to each of these entities? Okay. So, Rohit, first of all, thank you very much. And I will assure you that th

Hello. Thank you very much for the opportunity, sir. And congratulations on wonderful recovery of the company. So, sir, I have two questions. As you stated that US tariffs impacted the company, so would you say that the US order book has fully recovered after the tariff settlement?

Rajeev Gupta

So, I will say that it is under recovery. Normally, the garmenting is a long cycle. Once you miss a cycle sampling and the product orders are done to maybe the alternate countries, it takes time to come back to the supplier. And wherever we stuck to those customers to offer discounts, so those volumes are coming back. But product development, which we suffered during this period of three to six months, that is still impacting. And if everything goes well, I think another two quarters, things should be back to normalcy. Okay. And the second question is that what percentage of total exports are

Sir, I wanted to understand the power cost. In the standalone, I can see ₹495 crores, while in consolidated it is ₹484 crores. So, first question is why the consolidated number is lower than the standalone number in terms of power and fuel? And second is the investment of ₹60 crores in the renewable energy. What is the power cost reduction that we are looking at?

Nitin Tulyani

So, coming to your first question with respect to the power cost, like in our consolidated financial, we have another entity called BG Wind Private Limited, which is primarily for the wind energy. So, maybe because of that you are finding the difference. And coming to the power cost impact which you are talking about, I would like Manoj ji to answer this question. 17 | P a g e See, regarding the Adani Power, we are anticipating the impact of almost ₹1 per unit in the overall reduction. And how many units would that be? Can you help me translate that in terms of amount, sir, for the next year?

Hi. Yes. So, it was good to see, like, you are doing this capital raise, even though you are just increasing your stake by 2.5%. I just wanted to understand that a little bit better, because earlier, in the news, it was saying that Bhilwara was looking at investing ₹700 crores for this green pet plan. But now, it seems to be largely done through RSWM, and we are raising debt for it. So, is there a possibility that maybe the promoter wouldn't be increasing more equity in this project? Did you just help me understand that?

Rajeev Gupta

So, we could not get your question. Can you rephrase it in a way that we can understand? Yes. So, before, it was like Bhilwara was looking at investing ₹700 crores. That's what I read in the news. Right? Yes. Now, I got it. You are talking about a B2B project. Yes. 18 | P a g e I agree with that. B2B project, earlier, as a Group, it was being explored by our Bhilwara Energy Group. But originally, this project was emphasized by RSWM, and we were exploring this project at a location other than the current location, which is Ratlam. And then, RSWM financials at that point of time, and overall fit

Thank you. So, in closing, I extend my sincere gratitude to our employees, stakeholders, and partners for their unwavering support. With collective effort and a shared vision, we are well positioned to drive innovation, strengthen our market presence, and deliver sustainable value. The road ahead holds great promise, and I am confident in our ability to grow and succeed in the years to come. Thanks.

Management

Speaking time

Rajeev Gupta

Moderator

Ruben

Rohit Ohri

Nitin Tulyani

Rishabh Sharma

Saket Kapoor

Manoj Bansal

Nihar

Pramod

Opening remarks

Richa Singh

Thank you, Yusuf. Good evening, and welcome everyone to the RSWM Limited Q4 and FY26 Earnings Conference Call. Today, from the Management, we have Mr. Rajeev Gupta – Joint Managing Director, Mr. Manoj Bansal – Chief Transformation and Chief Risk Officer, Mr. Nitin Tulyani – President and CFO, Mr. Surender Gupta – Chief Compliance Officer and Company Secretary. Before we proceed with this call today, I would like to take this opportunity to remind everyone about the disclaimer related to this conference call. Today's discussion may be forward-looking in nature, based on current beliefs and expectations of management. It must be viewed in conjunction with the risk that the business faces that could cause or differ from future results and performance, which is expressed or implied by such forward- looking statements. I now hand over the conference to Mr. Rajeev Gupta for ‘Industry Outlook’, followed by Mr. Nitin Tulyani to take over for the ‘Financial Overview’. Thank you, and over to you

Rajeev Gupta

Thank you, Richa. Good evening, everyone. I hope you and your families are doing well. It is my pleasure to welcome you to the RSWM Q4 and FY26 Earnings Conference Call, and we sincerely appreciate your continued interest and participation. The financial results of the RSWM Press Release and Investors' Presentations have been shared with the Stock Exchanges, and we trust you had an opportunity to review these. 2 | P a g e Let me start by briefly setting the context for the global and Indian economy. As you all know, the past year, the year FY26, has been a period of strategic transformation and disciplined execution for RSWM. While the global textile landscape remains complex due to continuous challenges on account of geopolitical factors, I am pleased to share that we have navigated these headwinds with resilience and could turn around company performance, which is evident from the results shared yesterday for FY25-26. Our focus has been on improving the quality of earnings rather tha

Nitin Tulyani

Thank you, sir. Good evening, everyone, and thank you for joining us on the Q4 and FY26 Earnings Call. I will take you through the key financial and operational metrics for the quarter and full year period ended March 2026. I think the business environment during the quarter reflected gradual stabilisation across the textile value chain following a period of demand volatility. While recovery in the global market remains measured, we are seeing early signs of improvement driven by the normalisation of the inventory level and relatively better visibility in the select sector. From an industry perspective, there is a clear shift towards the value-added and the differentiated product category. Coming to the financial performance for Q4 FY26, revenue from operations stood at ₹1,142 crores, registering quarter-over-quarter growth of 4.5%, while declining 9.1% year-over-year, primarily due to weaker export demand. Our exports showed a recovery of 11.4% quarter-over-quarter at ₹368 crores, ind

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