This article first appeared on GuruFocus .
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Yarn Revenue Q4 FY26:INR 113 crores, down from INR 123 crores in Q4 FY25.
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Yarn Revenue FY26:INR 449 crores, down from INR 460 crores in FY25.
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Fabric Revenue Q4 FY26:INR 154 crores, up from INR 145 crores in Q4 FY25.
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Fabric Revenue FY26:INR 569 crores, a 5% increase year-on-year.
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Garment Revenue Q4 FY26:Increased by 40% to INR 96 crores.
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Garment Revenue FY26:Increased by 18% to INR 324 crores.
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Total Income FY26:Approximately INR 1,370 crores.
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EBITDA FY26:Approximately INR 144 crores, a 22.5% year-on-year growth.
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EBITDA Margin FY26:Around 11%.
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Exceptional Expense FY26:INR 9 crores related to new Labor Code law.
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PAT FY26:INR 28.4 crores, a 32.8% year-on-year growth.
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Total Income Q4 FY26:INR 369 crores.
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EBITDA Q4 FY26:INR 46 crores, a 46% year-on-year increase.
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PAT Q4 FY26:INR 9.6 crores, an 87% year-on-year growth.
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Net Debt as of March 31, 2026:INR 483 crores, up from INR 456 crores.
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Debt to Equity Ratio:0.8 times as of March 31, 2026.
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Release Date: May 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Banswara Syntex Ltd ( BOM:503722 ) reported a strong year-on-year growth in EBITDA by 22.5%, reaching approximately 144 crores, despite elevated raw material costs and geopolitical disruptions.
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The company achieved a significant increase in garment revenues by 40% in the last quarter and 18% for the entire FY26, supported by a healthy order book and improved execution.
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Banswara Syntex Ltd ( BOM:503722 ) has added new clients such as Walmart, contributing to a 15 crore turnover increase in the garment division during Q4.
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The fabric division delivered a resilient performance with a 5% year-on-year revenue increase, reaching a record of Rs. 569 crores, driven by premium fabrics and wool blended products.
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The company is optimistic about medium-term demand recovery, supported by improving order visibility, customer additions, and anticipated benefits from the India-UK and European free trade agreements.
Negative Points
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The yarn division faced operational headwinds due to labor shortages, impacting capacity utilization and production volumes, resulting in a 2% year-on-year revenue decline.
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Geopolitical uncertainties, particularly in the Middle East, have affected key shipping routes, leading to longer transit timelines and higher logistics costs.
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The company recognized a one-time exceptional expense of about 9 crores related to the implementation of the new Labor Code law.
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Despite improvements, the company continues to face challenges in passing on increased raw material costs to customers, impacting profitability.
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The Middle East geopolitical situation has led to a reduction in sales to the region, with an anticipated drop of 10-20 crores in revenue for FY27.
Q & A Highlights
Q: Have you added new clients in your export business, such as Walmart or J.C. Penney? A: Yes, Walmart has been a new addition, contributing significantly to our Q4 results in the garment division. We expect continued momentum with Walmart and have pivoted towards more export customers, leveraging the competitive position due to the strong yuan and weak Indian rupee. - Ravindrakumar Toshniwal, Managing Director
Q: What is the expected growth in the garment and fabric divisions for the next year? A: We are targeting a 20% growth in both the garment and fabric divisions. This growth is based on our strategic pivot towards export markets and leveraging existing customer relationships. - Ravindrakumar Toshniwal, Managing Director
Q: How do you plan to address the labor shortages affecting capacity utilization? A: We are focusing on strategic product mix planning and predictive analytics to manage labor shortages. By identifying high-performing products and scaling their production, we aim to improve efficiency and manage with less labor. - Ravindrakumar Toshniwal, Managing Director
Q: What is the plan for reducing debt, particularly long-term debt? A: We plan to start reducing long-term debt from FY28 onwards. Working capital debt is linked to growth and inventory, and we are managing it within norms. - Kavita Gandhi, Chief Financial Officer
Q: How has the Middle East situation impacted raw material prices and demand? A: The Middle East situation has increased raw material costs for polyester by about 25%. While we have passed on some of these costs, the rupee depreciation has helped in exports. We anticipate a reduction in sales to the Middle East but expect compensation from other markets. - Ravindrakumar Toshniwal, Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
