Raj Rayon Industries Limited (RAJRILTD)
₹22.51 -1.96% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Raj Rayon's revenue was ₹204 Cr (-21.4% year on year, -30.7% on the previous quarter), and net profit ₹6.9 Cr (+14.3% year on year); the operating margin was 8.5%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹204 | -21.4% | -30.7% |
| Operating profit | ₹17.3 | +15.2% | +8.0% |
| Net profit | ₹6.9 | +14.3% | -51.0% |
| EPS (₹) | 0.12 | +9.1% | -52.0% |
| Operating margin | 8.5% | — | — |
RAJRILTD exchange data
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📢 Recent Corporate Announcements
Raj Rayon Industries Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate was issued by Registrar and Share Transfer Agent MUFG Intime India Pvt. Ltd. on October 3, 2026. The filing confirms that physical share certificates received for dematerialisation were processed, confirmed, or rejected, and properly mutilated within prescribed regulatory timelines. This is a standard quarterly administrative disclosure with no financial impact.
- Compliance certificate submitted under Regulation 74(5) of SEBI Regulations, 2018
- Applies to the quarter ended September 30, 2026
- Issued by RTA MUFG Intime India Private Limited on October 3, 2026
- Signed and submitted to BSE and NSE on October 12-13, 2026
Raj Rayon Industries Limited concluded its 33rd Annual General Meeting on September 30, 2026, with all 4 resolutions passed with requisite majority. Approved items include the adoption of FY26 annual accounts, the reappointment of Ms. Sapna Rajkumar Agarwal as Director, cost auditor remuneration ratification, and approval of Related Party Transactions (RPT). For the RPT special resolution, promoters abstained from voting, and non-institution public shareholders approved it with 13,509,658 votes in favour (100.00%) versus 150 votes against.
- All 4 resolutions passed with ~100% approval at the 33rd AGM held on September 30, 2026.
- Total of 37 shareholders attended the AGM via VC (11 promoter group, 26 public).
- Special Resolution for Related Party Transactions passed with 13,509,658 public votes in favour and 150 against, with promoters abstaining.
- Promoter group holds 523,462,647 shares representing 94.13% of voting capital.
Raj Rayon Industries Limited has issued the notice for its 33rd Annual General Meeting scheduled for September 30, 2026. Key agenda items include the adoption of FY26 financial statements and the reappointment of Ms. Sapna Rajkumar Agarwal as Director. Notably, the company is seeking special resolution approval for related party transactions up to Rs 900 Cr with SVG Fashions Private Limited and an additional Rs 30 Cr across five other entities for the period October 1, 2026, to September 30, 2027.
- 33rd Annual General Meeting scheduled for September 30, 2026, via Video Conferencing.
- Shareholder approval sought for Related Party Transactions up to Rs 900 Cr with SVG Fashions Private Limited.
- Additional RPT limits sought for Sunflag Filaments (up to Rs 10 Cr) and Rs 5 Cr each for four other related entities.
- Ratification of Rs 1,00,000 remuneration for Cost Auditor M/s. C. Sahoo & Co. for FY27.
- Cut-off date for voting eligibility set as September 23, 2026.
Raj Rayon Industries Limited has scheduled a group meeting with analysts and institutional investors on August 31, 2026, starting at 04:00 PM. The interaction will be held virtually. As per the filing, discussions will be confined strictly to publicly available information with no unpublished price sensitive information (UPSI) disclosed.
- Analyst/investor group meeting scheduled for August 31, 2026, at 04:00 PM onwards
- Meeting format confirmed as a virtual interaction
- Company confirmed that no unpublished price sensitive information (UPSI) will be discussed
Raj Rayon Industries Limited has submitted copies of newspaper advertisements for its un-audited financial results for the quarter ended June 30, 2026. The advertisements were published in 'Free Press Gujarat' and 'Lokmitra' on August 14, 2026, as per regulatory requirements. This is a procedural filing under Regulation 30 of SEBI LODR. Investors should refer to the full financial statements to evaluate the impact of the company's recent Rs 118.51 Cr capex on its operational performance.
- Published un-audited financial results for the quarter ended 30th June, 2026.
- Advertisements released in Free Press Gujarat and Lokmitra on 14th August, 2026.
- Company maintains a high promoter holding of 94.1% as of March 2026.
- Total Property, Plant and Equipment (PPE) stands at Rs 330.93 Cr following recent expansions.
Raj Rayon Industries (RRIL) has announced a massive ₹650 crore capex plan over the next two years to double its production capacity to 700+ TPD. The company reported strong FY26 results with revenue reaching ₹1,179.7 crore, a 39% increase from ₹849.4 crore in FY25, and PAT growing to ₹34 crore. A significant ₹450 crore tax shield from legacy losses remains available to boost post-tax returns as the company scales. The turnaround under SVG Group is maturing, with EBITDA margins improving from 3.5% to 5.4% year-on-year.
- Planned investment of ₹650 Crores over the next 2 years to expand capacity to 700++ TPD.
- FY26 Revenue grew to ₹1,179.7 Cr, representing a ~6x increase from FY23 levels.
- EBITDA increased to ₹63.7 Cr in FY26, up from ₹29.5 Cr in FY25, with margins expanding to 5.4%.
- Accumulated tax shield of ₹450 Cr in unabsorbed losses to accelerate future cash flow generation.
- Working capital days turned negative in FY26, reflecting a self-funded structure through supplier credit.
Raj Rayon Industries has approved a massive Rs 650 crore Phase II expansion at its Silvassa facility, representing over 4x its current net worth of Rs 157 crore. The project aims to add 300 TPD of polyester yarn and 50 TPD of recycled polyester yarn, targeting a peak annual revenue potential of Rs 2,700–3,000 crore. Full commissioning is slated for CY2028, with earlier milestones in Q3 FY27 including entry into the fabrics segment and doubling of value-added Dope-Dyed Yarn capacity. The company is pivoting towards sustainable and technical textiles, aiming for these to constitute 80% of revenue at peak utilization.
- Rs 650 crore investment approved for Phase II brownfield expansion at Silvassa facility
- Targeting Rs 2,700–3,000 crore annual revenue potential at peak utilization by FY29
- Addition of 300 TPD polyester yarn and 50 TPD recycled polyester yarn capacity by CY2028
- Entry into fabrics (10 TPD) and doubling of Dope-Dyed Yarn capacity targeted for Q3 FY27
- Rs 25 crore biomass heating system to be commissioned by December 2026 to reduce costs by 1-2%
Raj Rayon Industries has announced a massive capital expenditure plan of up to ₹650 Cr for business expansion and infrastructure, representing over 400% of its current net worth. For Q1 FY27, the company reported a 21.4% YoY decline in revenue to ₹204.46 Cr, but Profit After Tax (PAT) grew 13% to ₹6.86 Cr, aided by a sharp reduction in material costs. The expansion will be funded through various sources, which investors should monitor for potential equity dilution or increased debt. The company continues to resolve legacy administrative issues from its pre-insolvency period, such as closing inoperative bank accounts.
- Board approved a significant capital expenditure of up to ₹650 Cr for plant, machinery, and infrastructure expansion.
- Q1 FY27 Revenue from operations decreased 21.4% YoY to ₹204.46 Cr compared to ₹260.19 Cr in Q1 FY26.
- Net Profit (PAT) increased by 13% YoY to ₹6.86 Cr from ₹6.07 Cr in the same period last year.
- Cost of materials consumed saw a substantial reduction to ₹138.04 Cr from ₹223.42 Cr YoY, supporting margins.
- The proposed ₹650 Cr capex is approximately 4.1x the company's current Net Worth of ₹157 Cr.
Raj Rayon Industries Limited has scheduled a meeting with analysts and institutional investors for August 13, 2026, at 12:00 Noon. The interaction, organized by Emkay Global Financial Services Ltd, will consist of 1x1 or group meetings in Mumbai. This engagement follows a period of significant capital expenditure, with the company capitalizing ₹118.51 Cr in H1 FY26 to expand production capacity. Discussions will be limited to publicly available information, with no unpublished price-sensitive information (UPSI) to be shared.
- Analyst and Institutional Investor meeting scheduled for August 13, 2026, at 12:00 Noon
- Interaction organized by Emkay Global Financial Services Ltd in Mumbai
- Company recently transitioned ₹98.03 Cr from Capital Work-in-Progress to Property, Plant and Equipment in H1 FY26
- Promoter holding remains exceptionally high at 94.14% as of March 2026
- Total Property, Plant and Equipment (PPE) currently stands at ₹330.93 Cr
Raj Rayon Industries reported a significant turnaround in Q1 FY26, posting a net profit of ₹6.07 Cr compared to a loss of ₹3.47 Cr in the same quarter last year. Revenue from operations surged 28.6% YoY to ₹260.19 Cr, likely reflecting the operationalization of new capacities. However, the statutory auditor maintained a qualified opinion regarding three inoperative bank accounts dating back to the pre-insolvency period. While the top-line growth is robust, the company remains highly sensitive to raw material costs, which accounted for 85.8% of total revenue this quarter.
- Revenue from operations grew 28.6% YoY to ₹260.19 Cr from ₹202.22 Cr.
- Net Profit turned positive at ₹6.07 Cr against a loss of ₹3.47 Cr in Q1 FY25.
- Raw material consumption costs rose to ₹223.41 Cr, representing 85.8% of revenue.
- Finance costs increased to ₹3.99 Cr from ₹3.68 Cr in the year-ago period.
- Total Comprehensive Income for the quarter stood at ₹6.10 Cr.
Raj Rayon Industries Limited has scheduled a group meeting with analysts and institutional investors on July 28, 2026, starting at 3:00 PM in Mumbai. The interaction will be based on publicly available information with no unpublished price-sensitive information intended for discussion. This meeting follows a significant capital expenditure phase where the company capitalized Rs 118.51 Cr in H1 FY26, bringing total Property, Plant and Equipment to Rs 330.93 Cr. Investors should note the high promoter holding of 94.14% and a Debt-to-Equity ratio of 1.41.
- Analyst and Institutional Investor meeting scheduled for July 28, 2026, at 3:00 PM.
- Company recently capitalized Rs 118.51 Cr in H1 FY26 to expand production capacity.
- Total Property, Plant and Equipment (PPE) now stands at Rs 330.93 Cr.
- Promoter holding remains high at 94.14% as of March 2026.
- Debt levels are significant at Rs 222 Cr against a net worth of Rs 157 Cr.
Raj Rayon Industries has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The document, issued by its Registrar and Share Transfer Agent, MUFG Intime India Pvt. Ltd., confirms that share certificates received for dematerialization during the quarter ended June 30, 2026, were processed within prescribed timelines. This is a standard administrative filing required for all listed companies to verify the integrity of electronic shareholding records. There is no impact on the company's financial performance or business operations.
- Confirmation of compliance for the quarter ended June 30, 2026
- Registrar MUFG Intime India Pvt. Ltd. confirmed processing of dematerialization requests within prescribed timelines
- Promoter holding remains high at 94.14% as per latest available context
- Company recently capitalized INR 118.51 Cr in H1 FY26 for capacity expansion
Raj Rayon Industries Limited has announced the closure of its trading window for insiders starting July 1, 2026. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of un-audited financial results for the quarter ending June 30, 2026. The window will remain closed until 48 hours after the financial results are made public. The company will notify the specific date of the board meeting to approve these results at a later time.
- Trading window closure begins on July 1, 2026, for all designated insiders
- Closure is linked to the Q1 financial results for the period ending June 30, 2026
- Trading window will reopen 48 hours after the official result declaration
- The board meeting date for result approval is yet to be announced
Raj Rayon Industries reported a robust performance for FY26, with annual revenue from operations growing 39% YoY to ₹1,179.72 crore. Net profit for the full year surged 146% to ₹33.99 crore, up from ₹13.81 crore in FY25, reflecting significant operational scaling. While the company faces a modified audit opinion and is seeking a waiver for minimum public shareholding non-compliance, its net worth improved to ₹156.47 crore from ₹122.47 crore.
- Annual Revenue from operations increased by 38.9% YoY to ₹1,179.72 crore in FY26.
- Full-year Profit After Tax (PAT) rose significantly to ₹33.99 crore from ₹13.81 crore in the previous year.
- Basic Earnings Per Share (EPS) improved to ₹0.61 for FY26 compared to ₹0.25 in FY25.
- Company reversed a ₹55 lakh provision related to non-compliance with minimum public shareholding, citing a waiver application.
- Management transition: Ms. Ritu Shukla appointed as Company Secretary following the resignation of Mr. Chintan Dharod.
Raj Rayon Industries has completed a successful turnaround under SVG Group management, with revenue scaling from ₹137 crore in FY23 to ₹1,180 crore in FY26. The company is embarking on a major expansion phase, planning to invest ₹500-600 crore over the next two years to double its capacity to 700 TPD. Profitability is bolstered by a significant ₹450 crore tax shield from legacy unabsorbed losses and strong vertical integration with the parent SVG Group. The company's credit profile has improved remarkably, moving from a default rating to BBB+/Stable.
- Revenue grew approximately 8.6x from ₹137 crore in FY23 to ₹1,180 crore in FY26.
- Planned Capex of ₹500-600 crore to double production capacity to 700 TPD over the next 2 years.
- Available tax shield of ₹450 crore from legacy losses to accelerate post-tax returns.
- Credit rating upgraded from 'D' (Default) to 'BBB+/Stable' following the SVG Group takeover.
- Targeting ₹60 crore debt reduction in FY27 through surplus cash and targeted prepayments.
Financial Performance
Revenue Growth by Segment
The company reported a total revenue from operations of INR 57,950.97 Lakhs for H1 FY26, representing a growth of 39.9% compared to INR 41,420.32 Lakhs in H1 FY25. For Q2 FY26, revenue was INR 31,931.76 Lakhs, a 50.6% increase over Q2 FY25 (INR 21,197.93 Lakhs). Segment-specific splits are not disclosed.
Profitability Margins
Net Profit Margin improved significantly by 202%, rising from 0.54% in FY 2023-24 to 1.63% in FY 2024-25. This improvement was driven by a substantial increase in revenue and operational scaling. However, the company remains in a low-margin environment typical of the textile industry.
EBITDA Margin
Not explicitly stated, but Total Income for H1 FY26 was INR 58,276.97 Lakhs against total expenses of INR 56,540.79 Lakhs, suggesting a thin operating margin. Finance costs for H1 FY26 were INR 1,429.28 Lakhs, impacting net profitability.
Capital Expenditure
The company capitalized significant assets in H1 FY26, with Property, Plant and Equipment (PPE) increasing from INR 21,241.55 Lakhs in March 2025 to INR 33,092.56 Lakhs in September 2025, an addition of INR 11,851.01 Lakhs. Capital Work-in-Progress decreased from INR 10,145.72 Lakhs to INR 342.12 Lakhs during the same period.
Credit Rating & Borrowing
Total borrowings as of September 30, 2025, stood at INR 20,780.71 Lakhs (INR 16,084.03 Lakhs non-current and INR 4,696.68 Lakhs current). Interest and other borrowing costs for H1 FY26 were INR 1,429.28 Lakhs. Specific credit ratings and interest rate percentages were not disclosed.
Operational Drivers
Raw Materials
Cost of materials consumed is the primary driver, totaling INR 46,746.58 Lakhs in H1 FY26, which represents 80.6% of total revenue from operations. Specific material names like PTA or MEG are not explicitly listed but are standard for rayon/polyester production.
Capacity Expansion
The company transitioned INR 9,803.60 Lakhs from Capital Work-in-Progress to Property, Plant and Equipment in H1 FY26, indicating the commencement of operations for new capacity. Total PPE now stands at INR 330.93 Cr.
Raw Material Costs
Raw material costs increased by 43.8% YoY in H1 FY26 (INR 46,746.58 Lakhs vs INR 32,515.97 Lakhs in H1 FY25), slightly outpacing revenue growth and indicating potential pricing pressure or volume expansion.
Manufacturing Efficiency
Inventory turnover ratio was 6.56 times in FY 2024-25, a slight decrease from 6.79 times in FY 2023-24, suggesting a minor slowdown in inventory movement relative to sales.
Strategic Growth
Growth Strategy
Growth is being pursued through significant capital expenditure (INR 118.51 Cr capitalized in H1 FY26) to expand production capacity. The strategy focuses on leveraging strengths in the principal markets and scaling revenue to improve net margins, which already saw a 202% increase in the previous fiscal year.
Products & Services
The company produces textile-related products, specifically Rayon and Polyester yarns, as indicated by its corporate name and material consumption patterns.
Market Expansion
The company aims to expand its market presence and leverage its strengths to create long-term value, though specific target regions are not named.
External Factors
Industry Trends
The textile industry is characterized by cyclical demand and the need for continuous technological upgradation. Companies lagging in technology risk losing competitiveness.
Competitive Landscape
The industry is noted for being highly competitive with a requirement for continuous upgradation to maintain market position.
Competitive Moat
The company's moat is not explicitly defined, though its increasing scale (PPE of INR 330.93 Cr) and improved net profit margins (up 202% YoY) suggest a strengthening competitive position in its segment.
Macro Economic Sensitivity
Operations are sensitive to changes in Government regulations, tax regimes, and general economic developments within India.
Regulatory & Governance
Industry Regulations
Operations are subject to raw material availability regulations, tax regimes, and government industrial policies.
Taxation Policy Impact
The company recognized a Deferred Tax Liability of INR 352.45 Lakhs as of September 30, 2025, a sharp increase from INR 23.30 Lakhs in March 2025.
Legal Contingencies
The company is in non-compliance with Minimum Public Shareholding (MPS) requirements. It has failed to pay fines levied by BSE and NSE for the quarters ended September 2024, December 2024, and March 2025. Consequently, promoter demat accounts have been frozen by the exchanges.
Risk Analysis
Key Uncertainties
The primary uncertainty is the regulatory risk regarding MPS non-compliance and the frozen promoter accounts, which could impact corporate actions. Additionally, the audit report is qualified due to three inoperative bank accounts for which details are still being sought.
Third Party Dependencies
High dependency on raw material suppliers, as material costs constitute 80.6% of revenue.
Technology Obsolescence Risk
The company acknowledges that failure to upgrade technology continuously can lead to a loss of competitiveness in the textile sector.
Credit & Counterparty Risk
Trade receivables stood at INR 4,426.04 Lakhs as of September 30, 2025. The company maintains a provision for expected credit loss, which was INR 1.77 Lakhs for the period.
