R&B Denims Limited (RNBDENIMS)
₹8.22 -3.52% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, R&B Denims' revenue was ₹119 Cr (+16.3% year on year, -13.3% on the previous quarter), and net profit ₹4.4 Cr (-46.8% year on year); the operating margin was 7.3%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹119 | +16.3% | -13.3% |
| Operating profit | ₹8.7 | -22.9% | +43.8% |
| Net profit | ₹4.4 | -46.8% | +291.0% |
| EPS (₹) | 0.17 | — | +325.0% |
| Operating margin | 7.3% | — | — |
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📢 Recent Corporate Announcements
R&B Denims' subsidiary, Ricon Industries, commenced commercial production of spun polyester yarn on September 30, 2026, at its Surat facility. The project represents an initial capital outlay of approximately ₹25 crore, which is around 13.2% of R&B Denims' current market cap (₹189 crore) and 7.5% of TTM revenue (₹335 crore). This strategic backward integration aims to achieve value chain synchronization, reduce raw material costs, and diversify revenue streams. Further investments are planned to be funded via internal accruals and/or debt.
- Commercial production of spun polyester yarn commenced on September 30, 2026
- Initial capital investment of approximately ₹25 crore deployed by subsidiary Ricon Industries
- Manufacturing located at Block No. 372, NH-8, Moje Dhamdod, Tal. Mangarol, Surat
- Future expansion proposed to be funded via a mix of internal accruals and debt
R&B Denims' subsidiary, Ricon Industries, commenced commercial production of spun polyester yarn on September 30, 2026, at its Surat facility. The project represents an initial capital outlay of approximately ₹25 crore, which is around 13.2% of R&B Denims' current market cap (₹189 crore) and 7.5% of TTM revenue (₹335 crore). This strategic backward integration aims to achieve value chain synchronization, reduce raw material costs, and diversify revenue streams. Further investments are planned to be funded via internal accruals and/or debt.
- Commercial production of spun polyester yarn commenced on September 30, 2026
- Initial capital investment of approximately ₹25 crore deployed by subsidiary Ricon Industries
- Manufacturing located at Block No. 372, NH-8, Moje Dhamdod, Tal. Mangarol, Surat
- Future expansion proposed to be funded via a mix of internal accruals and debt
R&B Denims announced that its subsidiary, Ricon Industries, is entering polyester yarn manufacturing and value-added denim garment manufacturing. The company has committed an initial capital investment of approximately ₹25 crore (~11.2% of market cap) for machinery, skilled manpower, and infrastructure modifications. Commercial production is scheduled to commence on September 30, 2026, at its existing Surat facility, funded via internal accruals and/or debt.
- Initial capital investment of approximately ₹25 crore by subsidiary Ricon Industries
- Commercial production scheduled to begin on September 30, 2026
- Forward integration into polyester yarn and finished denim apparel (jeans, jackets)
- Manufacturing unit located at Dhamdod, Taluka Mangarol, Surat district
R&B Denims' subsidiary, Ricon Industries, is expanding its business scope into polyester yarn manufacturing and forward-integrating into value-added denim garments like jeans and jackets. The subsidiary has made an initial capital outlay of approximately ₹25 crore to cover machinery, infrastructure modifications, and manpower. Commercial production is scheduled to commence on September 30, 2026, at its Surat unit. Relative to R&B Denims' market capitalization of ₹223 crore and TTM revenue of ₹335 crore, this ₹25 crore investment represents a notable ~11.2% of market cap and ~7.5% of revenue.
- Initial capital investment of approximately ₹25 crore by subsidiary Ricon Industries
- Commercial production set to begin on September 30, 2026, at Block No. 372, NH-8, Mangarol, Surat
- Forward integration into denim garmenting (jeans, jackets, apparel) alongside polyester yarn manufacturing
- Future investments to be funded via a mix of internal accruals and/or debt
R&B Denims Limited's Board has approved extending an unsecured loan of Rs 10 Crores to Ganpati Energy Private Limited. The loan carries an interest rate of 13.80% per annum and is repayable on demand or upon mutual termination. The borrower is not a related party and no security/collateral is pledged. The loan value represents approximately 5.2% of R&B Denims' market capitalization of Rs 193 Crores.
- Board approved execution of a loan agreement dated August 27, 2026
- Loan amount granted: Rs 10,00,00,000 (Rs 10 Crores)
- Interest rate fixed at 13.80% p.a., repayable on demand
- Completely unsecured loan with Nil security provided
- Borrower is an unrelated third party (Nil shareholding by R&B Denims)
R&B Denims reported a 14.3% YoY growth in standalone revenue to Rs 81.61 Cr for Q1 FY27. However, standalone net profit declined by 7.2% YoY to Rs 5.66 Cr, as the company faced higher raw material consumption costs, partially offset by inventory build-up. During the quarter, the company executed a 1:2 bonus issue and a stock split (Rs 2 to Re 1), increasing the paid-up capital to Rs 26.99 Cr. Consolidated performance was weaker, with a net profit of Rs 4.38 Cr.
- Standalone revenue from operations increased 14.3% YoY to Rs 81.61 Cr from Rs 71.37 Cr.
- Standalone net profit for the quarter stood at Rs 5.66 Cr, a decline from Rs 6.10 Cr in the same period last year.
- Cost of materials consumed rose significantly to Rs 84.28 Cr compared to Rs 54.61 Cr in Q1 FY26.
- Paid-up equity share capital increased to Rs 26.99 Cr following the allotment of 8.99 Cr bonus shares.
- Earnings Per Share (EPS) for the quarter was adjusted to Rs 0.21 (standalone) following the stock split and bonus issue.
R&B Denims Limited held its 16th Annual General Meeting (AGM) on August 05, 2026, with 36 shareholders in attendance via video conferencing. The meeting, which lasted 12 minutes, covered the adoption of FY26 financial statements where the company reported a revenue of ‑215.24 Cr and a net profit of ‑15.36 Cr. Key resolutions included the re-appointment of Director Nirmit Dalmia and the approval of Related Party Transactions (RPTs) with RB Industries, Ricon Industries, and Ricon Textile Limited. Voting results are currently pending the scrutinizer's report.
- The 16th AGM was conducted in 12 minutes, starting at 11:30 A.M. and concluding at 11:42 A.M. on August 05, 2026.
- A total of 36 shareholders participated in the meeting through Video Conferencing.
- Shareholders voted on 3 separate Related Party Transactions involving RB Industries, Ricon Industries, and Ricon Textile Limited.
- The company presented FY26 annual performance with revenue of ‑215.24 Cr and a net profit of ‑15.36 Cr.
- Remote e-voting was available from August 02 to August 04, 2026, prior to the meeting.
R&B Denims Limited conducted its 16th Annual General Meeting (AGM) on August 05, 2026, with 36 shareholders in attendance. The meeting, which lasted 12 minutes, covered the adoption of FY26 financial statements where the company reported a revenue of Rs 215.24 Cr and a PAT of Rs 15.36 Cr. Key agenda items included the re-appointment of Director Nirmit Dalmia and the approval of Related Party Transactions (RPT) with RB Industries, Ricon Industries, and Ricon Textile Limited. Voting results are currently pending the Scrutinizer's report.
- AGM held on August 05, 2026, concluded within 12 minutes (11:30 AM to 11:42 AM).
- 36 shareholders attended the meeting via Video Conferencing/Other Audio-Visual Means.
- Proposed approval for Related Party Transactions with 3 entities: RB Industries, Ricon Industries, and Ricon Textile Limited.
- Adoption of Audited Standalone and Consolidated Financial Statements for the year ended March 31, 2026.
- Re-appointment of Mr. Nirmit Dalmia as Whole-time Director was put to vote.
R&B Denims Limited has approved providing an unsecured loan of Rs 4 crore to Shah Paper Mills Limited to support the latter's business activities. The loan carries an interest rate of 13.8% per annum, which is significantly higher than standard bank deposit rates, reflecting the unsecured nature of the credit. This loan amount represents approximately 1.27% of R&B Denims' TTM revenue and roughly 17.4% of its TTM PAT. The borrower is not a related party, and the loan is repayable on demand.
- Loan amount of Rs 4,00,00,000 (Rs 4 Crore) granted to Shah Paper Mills Limited.
- Interest rate fixed at 13.8% per annum, repayable on demand.
- The loan is entirely unsecured with no collateral provided by the borrower.
- Transaction is confirmed as non-related party and executed at arm's length.
- Board meeting for approval concluded within 45 minutes on July 28, 2026.
R&B Denims has scheduled its 16th Annual General Meeting for August 05, 2026. The agenda includes approving massive Related Party Transaction (RPT) limits with subsidiaries RB Industries (₹1,000 Cr) and Ricon Industries (₹1,050 Cr), which combined represent ~6.5x the company's TTM revenue of ₹315 Cr. The company also seeks approval for unsecured borrowings of ₹200 Cr at a 9% interest rate, a figure exceeding its current market capitalization of ₹157 Cr. Additionally, the re-appointment of Mr. Nirmit Dalmia as Whole-time Director is proposed with a monthly remuneration of ₹4,00,000.
- Proposed Related Party Transaction limit with RB Industries set at ₹1,000 Cr
- Proposed Related Party Transaction limit with Ricon Industries set at ₹1,050 Cr
- Unsecured borrowing of ₹200 Cr proposed at 9% interest rate, repayable on demand
- Re-appointment of Mr. Nirmit Dalmia (24 years old) as Whole-time Director
- AGM scheduled for August 05, 2026, via Video Conferencing
R&B Denims Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended June 30, 2026. The company's Registrar and Share Transfer Agent (RTA), Bigshare Services Private Limited, confirmed that all securities received for dematerialization were processed within the mandated 15-day window. This process involves the verification, mutilation, and cancellation of physical certificates and updating the depository as the registered owner. This is a standard administrative filing required by SEBI to ensure the integrity of electronic shareholding records.
- Compliance certificate issued for the quarter ended June 30, 2026
- Confirmation that dematerialization requests were processed within 15 days of receipt
- Physical certificates were mutilated and cancelled after due verification by the RTA
- The name of the depository has been substituted in the records as the registered owner
Amit Dalmia, on behalf of the promoter group of R&B Denims Limited, has submitted the annual disclosure under SEBI (SAST) Regulations for the year ended March 31, 2026. The filing confirms that no shares held by the promoters or persons acting in concert (PAC) were encumbered, directly or indirectly, during the financial year. The disclosure lists 16 promoter entities, with the largest individual holdings belonging to Rajkumar Mangilal Borana (11.41%) and Deepak Dalmia (10.11%). This is a standard regulatory requirement to ensure transparency regarding promoter share pledges.
- Zero shares were encumbered or pledged by the promoter group during the 2025-26 financial year
- Amit Dalmia, Promoter and CMD, holds 90,25,855 shares representing 10.03% of the company
- Rajkumar Mangilal Borana holds the largest individual stake among promoters at 11.41% (1,02,64,605 shares)
- The promoter group consists of 16 distinct individuals and entities as of March 31, 2026
R&B Denims Limited has announced the closure of its trading window for all designated persons starting July 01, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the company's quarterly financial results. The window will remain closed until 48 hours after the announcement of the unaudited financial results for the quarter ending June 30, 2026. The specific date for the board meeting to approve these results will be communicated at a later date.
- Trading window closure commences on July 01, 2026.
- Applies to all directors, officers, designated employees, and their immediate relatives.
- Closure is related to the unaudited financial results for the quarter ended June 30, 2026.
- Trading window will reopen 48 hours after the financial results are officially announced.
- The board meeting date for result approval is yet to be determined and will be notified later.
R&B Denims Limited reported a strong top-line growth for FY26, with revenue from operations rising to ₹287.76 crore from ₹233.01 crore in FY25. However, the company's profitability took a significant hit, with annual net profit declining by 31% to ₹14.44 crore. The fourth quarter (Q4 FY26) was particularly concerning, as the company swung to a net loss of ₹1.55 crore compared to a profit of ₹6.06 crore in the year-ago period. This margin compression is largely due to a sharp rise in total expenses, which jumped from ₹220.59 crore to ₹280.91 crore annually.
- Annual Revenue from Operations grew 23.5% YoY to ₹287.76 crore.
- Net Profit for FY26 decreased by 30.9% to ₹14.44 crore from ₹20.92 crore in FY25.
- Reported a net loss of ₹1.55 crore in Q4 FY26 against a profit of ₹6.06 crore in Q4 FY25.
- Total annual expenses surged by 27.3% to ₹280.91 crore, impacting operating margins.
- Earnings Per Share (EPS) declined to ₹1.62 for the full year, down from ₹2.33 in the previous year.
R&B Denims Limited has reported that SEBI initiated search proceedings at its registered office and the premises of its Promoters and Chief Financial Officer. The search was conducted under Section 11C (9) of the SEBI Act, 1992, starting on April 22, 2026, and concluding on April 23, 2026. While the company claims there is currently no material impact on its financial or business operations, the specific allegations or violations have not yet been disclosed by the authority. Such regulatory actions typically introduce significant uncertainty regarding corporate governance and potential future penalties.
- Search conducted by SEBI under Section 11C (9) of the SEBI Act, 1992.
- Proceedings targeted the Registered Office, Promoters, and the Chief Financial Officer.
- The search operation lasted two days, concluding at 06:00 PM on April 23, 2026.
- Company states no current material impact on financials or business activities.
- Specific details regarding the nature of alleged violations are currently unknown.
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 5.08% YoY to INR 36,678.27 Lakhs. Segment-wise revenue for FY 2024-25: Denim at INR 23,603.38 Lakhs (97.42% of total), Solar Energy at INR 103.77 Lakhs (0.42%), and Wind Energy at INR 522.52 Lakhs (2.16%). Standalone revenue decreased 9.92% to INR 23,613.76 Lakhs.
Geographic Revenue Split
Not disclosed in available documents, though the company notes exposure to both domestic and international markets.
Profitability Margins
Net Profit Ratio improved 24.06% YoY to 8.86% from 7.14%. Standalone Net Profit grew 11.69% to INR 2,091.85 Lakhs, while Consolidated Net Profit grew 25.02% to INR 2,747.40 Lakhs. Operating Profit Ratio was reported at 0.12% compared to 0.09% in the previous year.
EBITDA Margin
Operating Profit Margin increased due to higher Earnings Before Interest and Tax (EBIT). Interest Coverage Ratio improved 7.34% to 12.14, indicating strong core profitability relative to debt obligations.
Capital Expenditure
Not disclosed in absolute INR Cr; however, the company recommended NIL dividend for FY 2024-25 to conserve resources for future growth plans and continuous modernization.
Credit Rating & Borrowing
Debt-Equity Ratio increased 29.48% to 0.26 (from 0.20) as the company utilized more cash credit facilities to increase its debt base. Interest coverage remains healthy at 12.14.
Operational Drivers
Raw Materials
Cotton, yarn, dyes, and chemicals are the primary raw materials. Volatility in cotton and yarn prices is cited as a significant risk to the cost structure.
Capacity Expansion
Current capacity not disclosed in MT; however, the company operates a modern manufacturing unit in Surat and is investing in continuous modernization to stay competitive.
Raw Material Costs
Raw material costs are subject to high volatility in cotton and transportation prices. Mitigation strategies include strategic procurement, maintaining buffer stocks, and entering long-term contracts.
Manufacturing Efficiency
Manufacturing efficiency is supported by advanced machines and a trained staff of 356 permanent employees. Median employee remuneration increased 2.72% to INR 26,091 per month.
Logistics & Distribution
Not disclosed as a specific INR value, but logistics costs are identified as a key operational risk factor that can impact business profits.
Strategic Growth
Growth Strategy
The company plans to leverage its integrated, eco-friendly model and expand into higher-margin denim segments. Growth will be supported by sustainability certifications, modern infrastructure, and the conservation of internal accruals (NIL dividend) for expansion.
Products & Services
Denim fabrics, Solar energy generation, and Wind energy generation.
Brand Portfolio
R & B Denims
New Products/Services
Expansion into higher-margin denim segments is planned to outperform peers in the evolving Indian denim landscape.
Market Expansion
Targeting growth in both domestic and global markets, specifically leveraging the projected growth of the global denim market to USD 86.7 billion by 2024.
External Factors
Industry Trends
The global denim market is growing (USD 86.7 billion in 2024) with a shift toward sustainable manufacturing. Indian manufacturers are focusing on eco-friendly models to enhance global competitiveness.
Competitive Landscape
Faces 'cut-throat' competition at local and international levels, including threats from fast fashion entrants and counterfeit/unbranded denim players.
Competitive Moat
Moat is built on an integrated eco-friendly manufacturing model and sustainability certifications. This is sustainable as it aligns with global shifts toward green textiles and provides cost efficiencies through scale.
Macro Economic Sensitivity
Sensitive to Indian economic growth and inflation (purchasing power risk). Higher inflation rates lead to faster currency value loss and increased operational costs.
Consumer Behavior
India's discretionary consumer base is limited to ~130-140 million people, constraining growth in premium segments and intensifying price pressure in value denim.
Geopolitical Risks
Risks include political turmoil, war, or revolution in buyer countries, and restrictions on remittances which may block or delay payments to the exporter.
Regulatory & Governance
Industry Regulations
Subject to environmental laws, labor regulations, and export-import policies. Compliance is monitored by a dedicated legal and compliance team.
Environmental Compliance
Not disclosed in absolute INR, but the company notes high water and energy intensity. It has adopted eco-friendly production and waste management to mitigate the risk of adverse remarks or penal provisions from regulators.
Legal Contingencies
Not disclosed in available documents. The company certified that no fraudulent or illegal transactions were entered into during the year.
Risk Analysis
Key Uncertainties
Raw material price volatility (cotton/yarn), regulatory changes in environmental laws, and market demand variations in international territories.
Third Party Dependencies
Dependency on a strong base of transporters and traders for product distribution and supply chain continuity.
Technology Obsolescence Risk
Identified as a risk where technological changes in manufacturing could render existing processes obsolete; mitigated through continuous modernization.
Credit & Counterparty Risk
Debtor Turnover Ratio decreased 16.96% to 5.31, indicating a slight slowdown in receivables collection. Financial risk includes potential defaults due to increased credit days for debtors.
