RSWM reports return to profitability in turnaround fiscal year

Indian textile manufacturer RSWM Limited (RSWM) has announced its audited financial results for the fourth quarter and full fiscal year ended March 31, 2026. The flagship company of the LNJ Bhilwara Group reported a transition back to profitability, despite a contraction in total revenue.

For the full fiscal year 2026 (FY26), the company achieved a profit after tax (PAT) of 52 crore rupees, compared to a net loss of 41.30 crore rupees in the previous year. This recovery was supported by a 40.50 percent year-over-year (YoY) increase in EBITDA, which reached 327.10 crore rupees.

Financial performance overview

While the company saw a return to profit, total revenue for FY26 declined to 4,554 crore rupees from 4,825.30 crore rupees in the previous year. Management attributed the 5.60 percent decline to a softer pricing environment, geopolitical uncertainty, and volatility in raw material prices.

Key financial metrics for the period include Q4 revenue of 1,142 crore rupees, reflecting a sequential uptick of 4.50 percent from Q3, annual gross margin improvement to 38.10 percent from 35.60 percent in FY25, strengthening of EBITDA margin to 7.10 percent for the full year, and fourth quarter PAT at 34.60 crore rupees, a significant increase from the 1.60 crore rupees reported in the same quarter last year.

Chairman and managing director and CEO of RSWM Limited, Riju Jhunjhunwala, stated that the performance reflects “focused execution across our core verticals, sharper product positioning, and disciplined cost management”.

Introduction of employee stock ownership plan

In a move to foster a culture of shared ownership, RSWM has announced the issuance of an Employee Stock Ownership Plan (ESOP) for its senior leadership team. The company is among the first in the textile industry to implement such a model for its executives.

The program will designate 2 percent of the company's paid-up share capital for approximately 35 leadership positions. According to the company, the initiative aims to retain essential talent and align individual success with organizational growth.

RSWM operates 11 manufacturing plants equipped with 6.13 lakh spindles and 172 looms. The company also highlighted its sustainability achievements, including the recycling of approximately 18.30 billion PET bottles per annum and the reduction of 8 lakh tonnes of CO2 emissions annually.

Joint managing director of RSWM Limited, Rajeev Gupta, noted that while the global textile industry continues to navigate trade disruptions and tariff uncertainties, the company remains focused on supply chain optimization and market alignment to sustain growth in the coming quarters.