Q4 2026 Banswara Syntex Ltd Earnings Call Transcript
Key Points
- Banswara Syntex Ltd (BOM:503722) reported a strong year-on-year growth in EBITDA by 22.5%, reaching approximately 144 crores, despite elevated raw material costs and geopolitical disruptions.
- The company achieved a significant increase in garment revenues by 40% in the last quarter and 18% for the entire FY26, supported by a healthy order book and improved execution.
- Banswara Syntex Ltd (BOM:503722) has added new clients such as Walmart, contributing to a 15 crore turnover increase in the garment division during Q4.
- The fabric division delivered a resilient performance with a 5% year-on-year revenue increase, reaching a record of Rs. 569 crores, driven by premium fabrics and wool blended products.
- The company is optimistic about medium-term demand recovery, supported by improving order visibility, customer additions, and anticipated benefits from the India-UK and European free trade agreements.
- The yarn division faced operational headwinds due to labor shortages, impacting capacity utilization and production volumes, resulting in a 2% year-on-year revenue decline.
- Geopolitical uncertainties, particularly in the Middle East, have affected key shipping routes, leading to longer transit timelines and higher logistics costs.
- The company recognized a one-time exceptional expense of about 9 crores related to the implementation of the new Labor Code law.
- Despite improvements, the company continues to face challenges in passing on increased raw material costs to customers, impacting profitability.
- The Middle East geopolitical situation has led to a reduction in sales to the region, with an anticipated drop of 10-20 crores in revenue for FY27.
Ladies and Gentlemen, Good day and welcome to the Q4 and FY26 Earnings Conference Call hosted by Banswara Syntex Limited.
(Operator Instructions)
I now hand the conference over to Mr. Ravindra Kumar Toshniwal, Vice Chairman from Banswara Syntex Limited.
Thank you and over to you, sir.
Thank you.
Hello, everyone. Good afternoon, everyone, and I welcome you all to our Quarter 4 and FY26 earnings conference call.
Along with me, we have on the call our CFO, M.S. Kavita Gandhi and SGA, our Investor Relations Advisor.
I hope you all have been able to go through the investor presentation uploaded on the exchange and our company website.
Let me begin by briefly highlighting some of the key developments shaping the industry environment and market dynamics.
FY26 was a turbulent year in which Maswara Syntex demonstrated resilience. Despite a challenging and evolving global operating environment.
The global textile and
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