RSWM registers 41.1% Y-o-Y growth in EBITDA in Q3, FY26

Defying a general volume decrease across the domestic spinning sector, RSWM reported an improvement in its earnings quality for Q3 FY26. While the company’s quarterly revenue moderated to Rs 1,093 crore, it recorded a 41.7 per cent Y-o-Y growth in EBITDA to Rs 82 crore. Upto 260 basis points to 7.4 per cent-this margin expansion is the direct result of an aggressive shift away from commoditized cotton toward high-value mélange yarns, technical knits, and ‘green’ polyester fiber. By optimizing its product mix, the LNJ Bhilwara Group flagship successfully offset a one-time service cost of Rs 14 crore, maintaining a positive bottom line.

The timing of this internal transformation aligns with the operationalization of the India-EU FTA in early 2026. The pact eliminates the 12 per cent tariff disadvantage Indian exporters previously faced, opening duty-free access to a $263 billion import market. The FTA raises the competitive threshold by mandating strict sustainability and traceability standards, notes Riju Jhunjhunwala, Chairman and Managing Director. To meet European mandates, RSWM has scaled its circularity initiatives, now upcycling 6.5 million PET bottles daily into recycled fiber. This integration of ESG-compliant manufacturing with high-margin synthetics has allowed the firm to post a nine-month net profit of Rs 17 crore, a dramatic turnaround from the losses recorded in the previous fiscal period.

The textile flagship of the $1.2 billion LNJ Bhilwara Group, RSWM Ltd is a premier manufacturer of value-added yarns and fabrics. Operating 12 plants with 6.25 lakh spindles, it serves apparel and industrial markets in 78 countries. Its current growth strategy focuses on high-margin technical textiles and expanded recycled polyester capacity.