RSWM reports resilient Q2, returns to profit

RSWM Ltd., a prominent manufacturer of yarns and fabrics in India, reported a resilient performance in the second quarter of fiscal Year 2026, achieving a total revenue of 1,150 crore rupees despite a muted market environment.

The quarter marked a definitive financial turnaround, with EBITDA soaring 85.6 percent year-over-year to 79 crore, resulting in a significant 318 basis point expansion in margin to 6.8 percent. The company returned to strong bottom-line profitability, posting a profit after tax (PAT) of 6 crore, reversing a loss in the prior year period, driven primarily by cost management and a favourable product mix that boosted gross profit margin to 38.4 percent.

Commenting on the outlook, Riju Jhunjhunwala, chairman, managing director and CEO, acknowledged the evolving global trade environment but positioned the company for future opportunities, noting, “The recently signed India–UK Free Trade Agreement and the upcoming India–EU trade pact are expected to be important milestones for the sector. These agreements will help reduce tariff barriers and enhance access to major international markets.”

He confirmed that RSWM is "well-prepared to take advantage of these developments through continuous product innovation, stronger compliance systems, and improved supply chain efficiency," while reaffirming that sustainability remains a "central part of our long-term strategy," involving the expansion of recycled fibers and investment in renewable energy.

Looking ahead, the management expressed an expectation for "a gradual recovery in exports and greater policy clarity" in the second half of the fiscal year, maintaining a positive medium-term outlook rooted in innovation and agility.