BANSWRAS - Banswara Syntex
Financial Performance
Revenue Growth by Segment
Total income grew 12.2% QoQ to INR 347.4 Cr in Q2 FY26. The garment division grew 7% sequentially to INR 80 Cr and 13% YoY for the first 6 months to INR 155 Cr. Technical fabrics contribute approximately INR 8-10 Cr.
Geographic Revenue Split
Not disclosed in available documents, though the company exports to the US indirectly through Vietnam, Bangladesh, Sri Lanka, Jordan, and Egypt to mitigate tariffs.
Profitability Margins
Gross margins remained strong and consistently above 50% during both the half-year and Q2 FY26, driven by product mix optimization.
EBITDA Margin
Not disclosed in available documents, but profitability levels were maintained despite increased inventory and debtor costs.
Capital Expenditure
Debt increased by INR 52.7 Cr (11.5%) to over INR 500 Cr to support modernization and increased working capital. Modernization exercise is nearing completion.
Credit Rating & Borrowing
Total debt stands above INR 500 Cr, having increased 11.5% YoY. Interest rate % not disclosed.
Operational Drivers
Raw Materials
FR (Flame Retardant) based yarns and technical fabrics.
Import Sources
Not disclosed in available documents.
Key Suppliers
Not disclosed in available documents.
Capacity Expansion
Current capacity utilization is 77% overall and 78% in the garment division. The company has the ability to hit INR 1,800 Cr revenue without significant additional CAPEX. The Surat facility is expected to restart in Q1 FY27.
Raw Material Costs
Not disclosed in available documents.
Manufacturing Efficiency
Capacity utilization improved to 77% in the recent quarter; garment division utilization is at 78%.
Logistics & Distribution
Not disclosed in available documents.
Strategic Growth
Expected Growth Rate
13-15%
Growth Strategy
Achieving growth by reaching the INR 1,800 Cr revenue capacity (up from INR 1,400 Cr projected for the current year), restarting the Surat garmenting facility in Q1 FY27, focusing on technical fabrics, and diversifying into alternative international markets beyond the US.
Products & Services
Yarn, fabric, garments, and technical fabrics (including FR based yarns).
Brand Portfolio
Not disclosed in available documents.
New Products/Services
Technical fabrics and FR (Flame Retardant) based yarns/fabrics currently contributing INR 8-10 Cr.
Market Expansion
Focusing on alternative markets to the USA and expanding the technical fabric division.
Market Share & Ranking
Not disclosed in available documents.
Strategic Alliances
Not disclosed in available documents.
External Factors
Industry Trends
The industry is characterized by high capital costs and complex operations, creating strong entry barriers. Demand is expected to revive as Chinese competition decreases.
Competitive Landscape
Peers include Siyaram and Raymond, who also utilize specialized in-house capacities and outside job-work for bulk volumes.
Competitive Moat
Moat is built on operational complexity, high capital entry barriers, and long-standing client relationships.
Macro Economic Sensitivity
Not disclosed in available documents.
Consumer Behavior
Not disclosed in available documents.
Geopolitical Risks
US tariff policies and the shifting interest of Chinese players in the textile market are key factors.
Regulatory & Governance
Industry Regulations
The company opted not to participate in the government's PLI scheme for fabric due to sufficient existing and job-work capacity.
Environmental Compliance
Not disclosed in available documents.
Taxation Policy Impact
Not disclosed in available documents.
Legal Contingencies
Not disclosed in available documents.
Risk Analysis
Key Uncertainties
Timing of global demand revival and potential changes in international trade tariffs.
Geographic Concentration Risk
Significant indirect exposure to the US market through third-party garment-making nations.
Third Party Dependencies
Reliance on job workers for bulk volume production to maintain better ROI.
Technology Obsolescence Risk
Ongoing modernization exercise to mitigate technology risks.
Credit & Counterparty Risk
Debtors increased due to extended credit terms; however, management states bad debts are being controlled well.