RSWM500350Quarterly results

Q2 results, revised Rs.208.26 crore garment project, Rs.46.24 crore subsidiary investment, 9,70,000 ESOPs

Q2 & H1 FY27 unaudited results approved.

By ScoutQuest · Mon 2 Nov 2026, 6:36 PM IST · 3 min read

Standalone Q2 Revenue: Rs. 1,322.29 crore
Standalone Q2 Net Profit: Rs. 24.53 crore
Revised Garment Project Cost: approx. Rs.208.26 crore from approx. Rs. 186.30 crores

Q2 and H1 FY27 results

The Board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with the statement of assets and liabilities and the cash flow statement. The statutory auditors issued a limited review report on them.

Key standalone figures

Revenue from operations: Rs. 1,322.29 crore for the quarter against Rs. 1,149.95 crore a year earlier; Rs. 2,483.53 crore for the half year against Rs. 2,319.14 crore.
Net profit for the period: Rs. 24.53 crore for the quarter against Rs. 6.28 crore; Rs. 41.27 crore for the half year against Rs. 13.24 crore.
Basic earnings per share: Rs. 5.21 for the quarter (not annualised) and Rs. 8.76 for the half year.

On a consolidated basis, net profit was Rs. 25.58 crore for the quarter and Rs. 45.23 crore for the half year.

Garment project cost revised upward

The Board reviewed the earlier plan announced on 5 August 2026 to set up a Denim Garment facility with NDS9 Private Limited at approx. Rs. 186.30 crores and decided to revise the project cost to approx. Rs.208.26 crore. The addition is a Knit Garments facility in the first phase itself, which the company links to achieving economies of scale.

More money into the joint-venture subsidiary

The Board decided to further invest up to Rs. 46.24 crore, in one or more tranches, in LNJ NDS9 Global Private Limited, a subsidiary, by acquiring up to 4.62 equity shares of face value of Rs. 10/- each, in a manner that maintains the 74:26 ratio as per the Joint Venture Agreement. The company holds 74% of this entity, which became a subsidiary with effect from 20 August 2026.

Employee stock options

Under the RSWM Limited Employees Stock Option Plan 2026, the Nomination and Remuneration Committee approved the grant of 9,70,000 options at an exercise price of Rs. 146/- per option to eligible employees of the company and of its subsidiary.

Electricity duty matter

The Rajasthan High Court decided on 6 April 2026 a matter relating to the applicability of electricity duty exemption on captive solar power generation. The company has shared a Special Leave Petition before the Supreme Court against that judgment and has deposited Rs. 7.42 crore under protest. On a prudent basis it recognised a provision of Rs. 11.50 crore as exceptional items in the quarter ended 30 September 2026.

One-off gain kept outside profit

Under a Composite Scheme of Arrangement sanctioned by the NCLT, Indore Bench, the company received 1,59,06,195 equity shares of HEG Advanced Materials Limited and 15,91,955 equity shares of HEG Limited, each of face value Rs. 2. The fair valuation of these holdings produced an unrealised gain of Rs. 180.78 crore (excluding deferred tax). This sits in other comprehensive income, not in the reported net profit, so it lifts total comprehensive income rather than the profit and loss line.

How to read the bundle

The update mixes quarterly numbers with three decisions that change how money is spent: a costlier garment project, fresh capital into a joint-venture subsidiary, and an employee stock option grant.
The Rs. 11.50 crore provision is a charge taken in this quarter's profit, while the large fair-value gain on the new shareholdings is routed through other comprehensive income.
Read revenue, profit and the project and investment outlays together, since the growth spends cash while the results show the earnings base.

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