Raghuvir Synthetics Ltd (514316)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Raghuvir Synthetics' revenue was ₹36.1 Cr (-56.4% year on year, +49.2% on the previous quarter), and net profit ₹-4.2 Cr (against a profit a year earlier); the operating margin was -4.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹36.1 | -56.4% | +49.2% |
| Operating profit | ₹-1.6 | to loss | loss widened |
| Net profit | ₹-4.2 | to loss | loss widened |
| EPS (₹) | -1.09 | to loss | loss widened |
| Operating margin | -4.4% | — | — |
📢 Recent Corporate Announcements
Raghuvir Synthetics has issued notice for its 44th Annual General Meeting scheduled for September 28, 2026. Key agenda items include the re-appointment of Chairman & Managing Director Sunil Agarwal for a 5-year term from July 2027 to June 2032 at an annual remuneration of ₹3.60 crore. The meeting will also consider the appointment of four Independent Directors and the adoption of FY26 financial statements. Remote e-voting runs from September 25 to September 27, 2026, with a cut-off date of September 21, 2026.
- Proposed annual remuneration of ₹3.60 crore (₹360 lakhs p.a.) for CMD Sunil Agarwal from July 1, 2027 to June 30, 2032
- 44th Annual General Meeting scheduled for September 28, 2026 at 12:30 PM in Ahmedabad
- Remote e-voting window opens September 25, 2026 (9:00 AM) and closes September 27, 2026 (5:00 PM)
- Shareholder cut-off date fixed as September 21, 2026
- Ratification of ₹30,000 cost auditor fee for FY27
Raghuvir Synthetics has received a Show Cause Notice and Form GST DRC-01 from the Directorate General of GST Intelligence (DGGI), Ahmedabad Zonal Unit. The notice pertains to alleged violations in the availment and utilisation of Input Tax Credit (ITC) for the period FY 2020-21 to FY 2024-25. The aggregate amount stated for tax, interest, and applicable penalty is approximately ₹2.24 crore (₹2,24,20,454). The company maintains that the ITC was legitimately availed and stated it will submit a formal reply within the prescribed timeline.
- Received Show Cause Notice under Section 74/74A of CGST Act on 19 August 2026
- Aggregate demand of approximately ₹2,24,20,454 covering tax, interest, and penalty
- Proceedings relate to 5 financial years: FY 2020-21 through FY 2024-25
- Allegations center on the availment and utilisation of Input Tax Credit (ITC)
Raghuvir Synthetics has received a Show Cause Notice and Form GST DRC-01 from the Directorate General of GST Intelligence (DGGI), Ahmedabad Zonal Unit, covering FY 2020-21 through FY 2024-25. The aggregate demand for tax, interest, and applicable penalties stands at ₹2,24,20,454 (~₹2.24 crore) regarding alleged irregularities in Input Tax Credit (ITC) availment. The potential liability represents approximately 6.6% of the company's net worth (₹34 crore) and comes while the company reported a TTM net loss of ₹1 crore. The company maintains that ITC was validly claimed and is in the process of submitting an appropriate legal response.
- Received Show Cause Notice under Section 74/74A of CGST Act from DGGI Ahmedabad on 19 August 2026
- Aggregate demand for tax, interest, and penalty quantified at ₹2,24,20,454 (~₹2.24 crore)
- Audit and inquiry span 5 financial years from FY 2020-21 to FY 2024-25
- Demand amount equals ~6.6% of the company's net worth of ₹34 crore
Raghuvir Synthetics Ltd announced a board reshuffle on August 13, 2026, appointing Ms. Hema Lakhmichand Advani and Ms. Kiran Nitesh Prajapati as Independent Directors for 5-year terms. This follows the resignation of two existing Independent Directors, Mr. Alpesh Dinesh Kumar Shah and Mr. Punambhai Bhailalbhai Patel, both citing personal reasons. The board also approved the unaudited standalone financial results for the quarter ended June 30, 2026. These changes come as the company navigates a challenging financial period, having reported a TTM net loss of Rs 1 crore and carrying a high Debt-to-Equity ratio of 2.26.
- Appointment of 2 new Independent Directors for 5-year terms effective August 13, 2026.
- Resignation of 2 Independent Directors on August 13, 2026, citing personal reasons.
- Reconstitution of 3 board committees: Audit, Nomination & Remuneration, and Stakeholder Relationship.
- Approval of standalone financial results for the quarter ended June 30, 2026.
- Company maintains a high promoter holding of 74.91% as of the June 2026 quarter.
Raghuvir Synthetics has announced a significant board reshuffle, appointing Ms. Hema Lakhmichand Advani and Ms. Kiran Nitesh Prajapati as Independent Directors for 5-year terms effective August 13, 2026. This follows the resignation of two existing Independent Directors, Mr. Alpesh Dinesh Kumar Shah and Mr. Punambhai Bhailalbhai Patel, both citing personal reasons. The board also approved the unaudited financial results for the quarter ended June 30, 2026. These changes come as the company manages a high debt-to-equity ratio of 2.26 and a TTM net loss of Rs 1 Cr.
- Appointment of 2 new Independent Directors for a fixed term of 5 years starting August 13, 2026
- Resignation of 2 Independent Directors, leading to the reconstitution of Audit and NRC committees
- Approval of standalone financial results for the quarter ended June 30, 2026
- Company maintains a high promoter holding of 74.91% as of June 2026
Raghuvir Synthetics Ltd held a board meeting on August 13, 2026, to approve the unaudited standalone financial results for the quarter ended June 30, 2026. The company announced a significant board reshuffle with the simultaneous resignation of two Independent Directors, Mr. Alpesh Shah and Mr. Punambhai Patel, citing personal reasons. They are replaced by Ms. Hema Advani and Ms. Kiran Prajapati, both appointed for five-year terms. This governance change occurs against a backdrop of financial stress, with the company reporting a TTM loss of ₹1 Cr and a high debt-to-equity ratio of 2.26.
- 2 Independent Directors resigned simultaneously effective August 13, 2026
- 2 new Independent Directors appointed for a fixed term of 5 years each
- Board approved unaudited standalone financial results for the quarter ended June 30, 2026
- Company maintains a high debt-to-equity ratio of 2.26 with a net worth of only ₹34 Cr
- Board meeting concluded after 2 hours and 35 minutes of deliberation
Raghuvir Synthetics approved its standalone financial results for the quarter ended June 30, 2026, alongside a significant board reshuffle. Two Independent Directors, Mr. Alpesh Shah and Mr. Punambhai Patel, resigned simultaneously citing personal reasons. They are replaced by Ms. Hema Advani and Ms. Kiran Prajapati for five-year terms. This governance update comes as the company manages a high debt-to-equity ratio of 2.26 and seeks to recover from a net loss of Rs 1.0 Cr in FY26.
- Appointment of 2 new Independent Directors for 5-year terms starting August 13, 2026.
- Resignation of 2 Independent Directors from the board and all sub-committees.
- Approval of Unaudited Standalone financial results for the quarter ended June 30, 2026.
- Reconstitution of 3 board committees: Audit, Nomination & Remuneration, and Stakeholder Relationship.
- Board meeting duration of 2 hours and 35 minutes (06:00 P.M. to 08:35 P.M.).
Raghuvir Synthetics has received a formal GST intimation (Form DRC-01A) for ₹3.76 crore concerning alleged Input Tax Credit (ITC) violations for FY 2020-21 and FY 2021-22. This amount is significantly higher than the ₹1.88 crore previously disclosed by the company in May 2025. The total demand represents approximately 11% of the company's current net worth (₹34 Cr) and is nearly four times its TTM net loss of ₹1 Cr. The company is currently seeking clarification from authorities regarding the discrepancy in the demand amount.
- Total demand of ₹3.76 crore includes tax, interest, and applicable penalties for FY21 and FY22.
- The demand amount has increased by 100% compared to the previous disclosure of ₹1.88 crore.
- The dispute centers on the availment and utilization of Input Tax Credit (ITC) under Section 74(5) of the CGST Act.
- The ₹3.76 crore liability is material, representing ~11% of the company's ₹34 crore net worth.
- Company reported a TTM net loss of ₹1 crore, making this demand a significant financial headwind.
Raghuvir Synthetics has scheduled a board meeting on August 13, 2026, to approve standalone unaudited financial results for the quarter ended June 30, 2026. The company is coming off a difficult FY26, reporting a net loss of ₹1.0 crore and a significant revenue decline in the most recent quarter (₹24.18 crore in Mar 2026 vs ₹82.67 crore in Jun 2025). With a high debt-to-equity ratio of 2.26 and thin operating margins of 3.1%, these results are critical to assess if the company's transition to direct exports is stabilizing the bottom line.
- Board meeting scheduled for 13th August, 2026, to review Q1 results.
- Company reported a net loss of ₹3.58 crore in the immediate preceding quarter (Mar 2026).
- TTM revenue of ₹255 crore represents a decline from FY25 revenue of ₹333 crore.
- Promoter holding remains stable at 74.91% as of June 2026.
Financial Performance
Revenue Growth by Segment
The company operates in a single textile segment. Standalone total income grew 38.07% YoY, rising from INR 243.99 Cr in FY24 to INR 336.88 Cr in FY25. Consolidated total income grew 37.84% YoY to INR 336.70 Cr.
Geographic Revenue Split
Not specifically disclosed in percentage terms, but the company is actively shifting focus toward global export opportunities to complement its existing domestic job work business.
Profitability Margins
Net Profit Margin improved by 50%, increasing from 2% in FY24 to 3% in FY25. Standalone Profit After Tax (PAT) surged 91.09% to INR 9.06 Cr from INR 4.74 Cr in the previous year.
EBITDA Margin
Profit before Depreciation and Taxes (PBDT) grew 36.30% YoY to INR 17.51 Cr in FY25 from INR 12.85 Cr in FY24. The PBDT margin stood at 5.20% of total income.
Capital Expenditure
The company is making strategic investments in capacity building and installed machineries to improve quality and reduce costs, though specific INR Cr figures for planned FY26 capex are not disclosed.
Credit Rating & Borrowing
The Debt-Equity ratio improved significantly by 26.62%, falling from 1.39 in FY24 to 1.02 in FY25. The Interest Coverage Ratio strengthened to 3.90, indicating improved ability to service debt from operating profits.
Operational Drivers
Raw Materials
Cotton is the predominant raw material used in the textile sector, representing the largest component of the INR 319.37 Cr operating and administrative expenses.
Import Sources
Not specifically disclosed, though the company monitors global commodity prices and government policies in other countries that impact cotton availability.
Key Suppliers
Not disclosed; however, the company emphasizes maintaining strong, long-term relationships with vendors to ensure timely availability of raw materials.
Capacity Expansion
The company is utilizing installed machineries for cost diminution and quality improvement. It aims to leverage the government's plan for seven mega textile parks to achieve manufacturing scale.
Raw Material Costs
Raw material costs are subject to erratic price movements of cotton. The company manages this through vendor relationships and by monitoring government measures intended to soften cotton prices.
Manufacturing Efficiency
The company focuses on optimum utilization of resources and cost diminution through technology to remain competitive against low-cost imports.
Logistics & Distribution
The company is leveraging strategic partnerships with stakeholders to offer competitive rates globally as it expands its export footprint.
Strategic Growth
Expected Growth Rate
7%
Growth Strategy
The company is transitioning from a job-work-only model to direct exports to capture higher margins. It plans to utilize the 'plug and play' model of upcoming mega textile parks to build manufacturing competitiveness and scale. Growth will be supported by the National Manufacturing Mission and export promotion policies.
Products & Services
Textile products including processed fabrics and apparel, offered through both job work services and direct export sales.
Brand Portfolio
Raghuvir Synthetics Limited.
New Products/Services
Expansion into export-oriented textile lines to diversify revenue streams away from pure job work.
Market Expansion
Targeting global markets for textile exports while maintaining domestic job work operations to maximize capacity utilization.
Market Share & Ranking
The Indian textile industry accounts for 3.91% of global trade; the company is positioning itself to capture a larger share of this through export initiatives.
Strategic Alliances
Strategic partnerships with stakeholders across the supply chain to leverage economies of scale and offer competitive global rates.
External Factors
Industry Trends
The Indian textile market is growing at a 7% CAGR, reaching USD 147 Billion in FY25. The industry is shifting toward technical textiles and mega-park-based manufacturing to enhance global competitiveness.
Competitive Landscape
Faces intense competition from low-cost international imports and a fragmented domestic textile sector.
Competitive Moat
The moat is built on economies of scale, strategic vendor partnerships, and technology adoption. Sustainability depends on maintaining cost leadership in a commodity-sensitive market.
Macro Economic Sensitivity
Sensitive to global economic growth (forecasted at 2.8% for 2025) and domestic GDP, where textiles contribute approximately 2.3%.
Consumer Behavior
Not specifically detailed, though the industry is moving toward value-added segments and technical textiles.
Geopolitical Risks
Trade policies in other countries and the potential for low-cost imports are identified as significant risks to the pricing strategy.
Regulatory & Governance
Industry Regulations
Operations are influenced by the National Technical Textiles Mission (INR 1,480 Cr outlay) and the National Manufacturing Mission aimed at boosting 'Make in India'.
Environmental Compliance
The company focuses on health-related issues and minimizing workplace accidents, though specific ESG compliance costs are not disclosed.
Taxation Policy Impact
The company recorded a standalone tax credit of INR 27.09 Lakhs in FY25, compared to a tax expense of INR 47.92 Lakhs in FY24.
Legal Contingencies
Not disclosed in the provided management discussion and analysis.
Risk Analysis
Key Uncertainties
Volatility in cotton prices and the availability of skilled labor are the primary uncertainties that could impact the operating margin by more than 1-2%.
Geographic Concentration Risk
Currently focused on Ahmedabad for operations, with a growing but unspecified geographic spread through exports.
Third Party Dependencies
High dependency on cotton farmers and vendors for raw material supply stability.
Technology Obsolescence Risk
Mitigated by continuous investment in 'cutting-edge technology' and modern machineries to maintain manufacturing efficiency.
Credit & Counterparty Risk
Low risk indicated by a high Trade Receivable turnover ratio of 66.85 times, suggesting prompt payments from customers.
