India Ratings upgrades RSWM's long-term credit outlook to stable

Indian textile manufacturer RSWM, the flagship company of LNJ Bhilwara Group, has secured a revised long-term credit rating outlook, signaling improved financial stability following a challenging two-year period.

India Ratings and Research (Ind-Ra) upgraded the outlook for the company from negative to stable, while simultaneously affirming its long-term issuer rating at IND A. The decision marks a notable operational milestone for the manufacturer, which had maintained a negative outlook over the past two financial years.

Financial prudence drives rating upgrade

According to Ind-Ra, the revised outlook reflects a strong financial position, disciplined capital management, and consistent operational performance by the textile producer. The company, which manufactures value-added synthetic, mélange, cotton, and blended yarns, as well as denim fabric, knitted fabric, and green polyester fibre, exports its product portfolio to over 70 countries globally.

The shift in credit sentiment follows targeted corporate restructuring efforts under the RSWM 2.0 initiative, a program designed to enhance operational efficiencies and optimize balance sheet performance.

“The revision of our outlook to stable reflects the strength of RSWM’s business fundamentals, financial discipline, and resilience,” RSWM chairman, managing director, and CEO Riju Jhunjhunwala said in a press statement. “We remain committed to driving sustainable growth while maintaining a prudent approach to capital allocation and balance sheet management.”

Strategic market positioning

The company has focused heavily on shifting its product mix toward higher-margin, value-added textiles to combat volatile raw material pricing and fluctuating global demand across key export markets.

RSWM joint managing director Rajeev Gupta noted that the positive rating action directly validates these internal adjustments. “This positive rating action is a recognition of our continued focus on operational excellence and financial prudence under the RSWM 2.0 initiative,” Gupta said. “We will continue to strengthen our market position through innovation, efficiency, and value creation for all stakeholders.”