Banswara Syntex

Banswara Syntex reported a robust Q3 FY26, with total income at INR343.3 crores. The company's focus on value-added offerings and efficient cost management led to gross margins remaining above 50%. EBITDA for the quarter stood at INR42 crores, marking a significant 25% quarter-on-quarter increase. Profit after tax (PAT) saw an impressive 89% QoQ growth, reaching INR13.2 crores, reflecting strong operational execution.

For the first nine months of FY26, Banswara Syntex achieved a total income of INR1,000 crores, representing a 4% year-on-year increase. EBITDA for the 9M period grew 14% YoY to INR97.6 crores, while PAT increased by 16% YoY to INR18.8 crores. This performance demonstrates the company's ability to recover from a challenging Q1 and maintain a positive growth trajectory through Q2 and Q3.

The Fabric division's revenue for 9M FY26 grew 5% YoY to INR416 crores, with a Q3 revenue of INR150 crores and sales volume of 59 lakh meters. The Garment division also showed strong growth, with 9M FY26 revenue increasing 11% YoY to INR229 crores and Q3 revenue at INR73 crores (up 4% YoY). A notable shift in the Garment division saw jackets and suits contribute 26% of revenues in Q3 FY26, up from 16% in Q2 FY26, leading to higher realizations.

Management emphasized a continued focus on value-added products, particularly in premium fabrics like wool-blended and stretch products. The company aims to increase value-added fabric sales volume from 1.4-1.5 million meters/month to 1.8-2.0 million meters/month within the next 5-6 months. The export-domestic mix is currently 50-50, a balance the company intends to maintain, leveraging improved trade access in the US and EU markets.

Net debt as of December 31, 2025, increased by INR39 crores to INR495.1 crores, compared to INR456.2 crores on March 31, 2025. This increase is attributed to ongoing capital expenditure for modernization and higher working capital requirements. The debt-to-equity ratio stands at approximately 0.9x. Management expects projects to conclude by the end of FY27 and anticipates debt repayment by FY28, provided EBITDA margins remain above 12.5%.

The Garment division operated at 65% capacity utilization in Q3 FY26, primarily due to delays in transferring Surat SEZ capacities to DTA, a situation expected to resolve in 4-5 months. The company aims to achieve a total turnover of INR1,800 crores and a garment turnover of INR450-500 crores without increasing current capacity. Management also guided for a 15-20% growth in both fabric and garment businesses and expects FY26 total income to be in the range of INR1,300-1,350 crores, with a further 15-20% increase in FY27.