Mumbai: Raj Rayon Industries Limited reported a 4.4 per cent year-on-year rise in net profit to Rs 14 crore for Q4 FY26, supported by strong revenue growth and improved operating performance.
Revenue from operations climbed 43.2 per cent to Rs 294.8 crore during the March quarter compared with Rs 205.8 crore in the corresponding period last year. Sequentially, revenue moderated 3.5 per cent from Rs 305.4 crore recorded in Q3 FY26.
The textile yarn manufacturer posted total income of Rs 295.9 crore in Q4 FY26 against Rs 208.5 crore a year earlier. Total expenses rose sharply to Rs 288.3 crore from Rs 201 crore in Q4 FY25, reflecting higher raw material consumption and operating costs.
Cost of materials consumed increased to Rs 262.8 crore during the quarter from Rs 177.6 crore in the year-ago period, while finance costs stood at Rs 4.8 crore compared with Rs 2.7 crore last year.
Sequentially, profit after tax surged from Rs 5.9 crore in Q3 FY26 to Rs 14 crore in Q4 FY26, aided by deferred tax adjustments. Deferred tax gain during the quarter stood at Rs 6.5 crore compared with a deferred tax expense of Rs 6 crore in the corresponding quarter last year.
Profit before tax remained stable at Rs 7.6 crore against Rs 7.4 crore in Q3 FY26. The company did not report any exceptional items during the quarter.
For the full financial year FY26, Raj Rayon reported revenue from operations of Rs 1,179.7 crore compared with Rs 849.4 crore in FY25, registering a growth of nearly 39 per cent.
Annual net profit rose to Rs 34 crore from Rs 13.8 crore in the previous year. Earnings per share for FY26 increased to Rs 0.61 from Rs 0.25 in FY25.
The company said implementation of new labour codes has been deferred to the next financial year while management continues consultations with the HR department.
Raj Rayon also reversed a Rs 55 lakh provision created earlier for minimum public shareholding non-compliance after filing waiver applications with concerned authorities.
The statutory auditors issued a qualified opinion on the FY26 financial statements due to pending details related to three inoperative bank accounts from the pre-insolvency resolution period. Management stated it is in the process of obtaining the required information from bankers.
Disclaimer: This report is based on audited regulatory filings and is not investment advice.
