RSWM achieves margin expansion despite revenue decline in Q3

Indian textile manufacturer RSWM has announced its financial results for the third quarter and nine months of the 2025/26 financial year. The company reported a revenue of 10.93 billion rupees for the quarter ending December 31, 2025, a decrease of 5 percent. Management attributed this decline to softer demand conditions and uneven global textile trends.

Chairman, managing director, and chief executive officer Riju Jhunjhunwala highlighted the India–EU Free Trade Agreement as a structural positive for Indian exporters, noting that RSWM is well-positioned to meet stringent EU sustainability and labour standards.

Q3 highlights

Despite the volume moderation, the company achieved significant margin expansion through improved operating efficiencies and a favourable product mix. EBITDA for the third quarter rose to 820 million rupees, representing 41.7 percent year-over-year (YoY) growth.

Gross margin expanded to 39.2 percent, up 78 basis points quarter-over-quarter and 310 basis points YoY, while EBITDA margin improved to 7.4 percent, representing a 260 basis point expansion YoY. Profit after tax remained positive at 42 million rupees, despite a one-time exceptional labour-related service cost.

Nine-month results and turnaround

For the first nine months of the fiscal year, revenue reached 34.12 billion rupees. EBITDA for the period increased to 2.42 billion rupees from 1.54 billion rupees in the corresponding period of the previous year. Profit after tax reached 174 million rupees, marking a significant turnaround from a loss of 429 million rupees in 9M FY25.

The company continues to prioritise its environmental initiatives, which include recycling approximately 1.83 billion PET bottles annually and reducing CO2 emissions by 800,000 tonnes per annum.

RSWM operates 11 manufacturing plants with a total capacity of 627,000 spindles and 172 looms, exporting to over 70 countries worldwide.