RSWM Limited (NSE: RSWM) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Rajeev Gupta — Chief Executive Officer, Joint Managing Director, Non Independent Executive Director
Nitin Tulyani — President & CFO
Analysts:
Abhijit Rao — Analyst
Ruben Dias — Analyst
Rohit Ohri — Analyst
S.P. Veya — Analyst
Mitul — Analyst
Presentation:
operator
Ladies and Gentlemen, good evening and welcome to the RSWM Limited Q3 and 9 month FY26 earnings conference call hosted by Rick Capital. We have with us today from the management Mr. Rajiv Gupta, Joint Managing Director, Mr. Manoj Bansal, Chief Transformation Officer and Chief Risk Officer Mr. Nitin Tuliani, President and Chief Financial Officer Mr. Rakesh Chain, General Manager, Corporate Finance Mr. Surender Gupta, Senior VP, Legal and Company Secretary. As a reminder, all participant lines will be in the listen only mode and you will have an opportunity to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing Star then zero on your touch tone phone.
Before we proceed with this call, I would like to take this opportunity to remind everyone about the disclaimer related to this conference call. Today’s discussion may be forward looking in nature based on management’s current beliefs and expectations. It must be viewed in conjunction with the risks that our business faces that could cause our future results, performance or achievements to differ significantly from what may be expressed or implied by such forward looking statements. I now hand the conference over to Mr. Rajiv Gupta for the industry outlook. Following that, Mr. Nitin Tulyani will take over for the financial overview.
Thank you. And over to you Sir.
Rajeev Gupta — Chief Executive Officer, Joint Managing Director, Non Independent Executive Director
Hi. Good evening everyone. I hope you and your families are doing well. It is my pleasure to welcome you all to RSWM Q3 and 9 months FY26 earning conference call. We appreciate your continued interest and participation. Our financial results and investor presentation are available on stock exchanges and I trust you had an opportunity to review them. Let me start by briefly setting up the contest by global and Indian economy. The global economy is entering a phase of recalibration with the growth stabilizing around 3.2% during 2526. Despite the ongoing tariff tensions and the policy uncertainties we all are experiencing, however, India continues to outperform global peers with the GDP growth rate projected at 7.4% for FY26.
Now turning to the textile sector and the trade environment in textile. Global supply chain realignment, easing inflation and stabilizing growth are improving demand visibility across key global textile markets in February 26. Very recently, India and United States announced an interim trade framework aimed to reducing the tariff variance to 18% from the previously increased 50%, laying the foundation for a broader bilateral agreement. The significant tariff reduction is expected to improve market assess for Indian textile exporters and this will support a recovery of order inflow in the following softness observed in 2025 for last three quarters before that in January 26 India and the EU European unions concluded a negotiation on a comprehensive FTA that is free trade agreement making a significant structural shift of Indian exports particularly in value added and man made fiber segment where India has historically been under presented.
Now this agreement will give us a level playing field with tariff coming up from 8 to 12% to almost zero, thereby enhancing our competitiveness in global market particularly Europe. And we’ll be at the same level with Bangladesh, Vietnam, Turkey and Sri Lanka. With the EU representing textile and parallel import market ceding almost 250 billion annually, the cement of tariff parity is expected to unlock substantial growth opportunities and enable stronger participation in the higher value added segments by Indian textile players. India’s expanding trade architect concluding recent trade agreements with the us, EU and before that in uk, Oman and New Zealand.
All these entry free availability of markets will enhance our economic parity in exports from India to all these markets. Collectively these arrangements provide tariff reduce or duty TSS to the global markets enhancing competitiveness and supporting export growth. These judgments align with the broader shift from the global players towards square consolidation, ESD compliances, scalable sourcing partners. These are the areas where Indian manufacturers are increasingly positioned well. Now building on these trends, our strategic initiative remains focused on strengthening long term competitiveness and positioning RSWM for sustainable growth. The knitted fabric expansion that we discussed last time involving a capital expenditure of 92cr is progressing in a phased manner and we are expecting this to be fully operational in FY27 first half.
The net expansion will significantly enhance the output and technical capabilities of our netting units both at Modi, Rajasthan and Shasta, Uttar Pradesh. The total netting capacity post this expansion will increase by 20% from 750 metric ton to 900 metric ton. A key highlight of this expansion is that introduction of printed knit product line enabling RSWM to enter a fashion intensive segment. The front account for approximately 30 to 35% of knitted fabric market which includes fit wear, women’s wear, loungewears. This was a market which we were missing and this will help us to give access to new orders and the customers across the geographies.
The acquisition of LNJ Green PET strengthens our position across Recycle PET value chain. The upcoming facilities in Vietnam Madhya Pradesh will produce food grade recycle region expanding our presence in the packaging segment and aligning with the regulatory and ESG driven demand. This positions us to serve major FMCG players who are mandated to increase recycle content in their packaging. The facility is targeted to become operational within a span of next 12 to 15 months across all businesses verticals. We continue to sharpen our focus on improving cost efficiency, enhancing product mix and thereby overall profitability while scaling large value added segments, improving asset utilization and operational efficiencies.
We are also regularly reviewing our low margin low contribution products across businesses and making continuous effort to diversify the customer base and refine the product mix thereby improving overall profitability. With visible margin improvement across both quarterly and nine month periods, we believe RSWM is well positioned to deliver profitable and sustainable growth in medium term. Now I’ll hand over the call to Mr. Nitin Tulani, our President and CFO for further detailing.
Nitin Tulyani — President & CFO
Thank you sir. Good evening everyone and thank you for joining us on the quarter three and nine months FY26 earnings call. I will take you through the key financial highlights and operational metrics for the quarter and nine month period ended December 2025. So starting with the business environment during the quarter, demand conditions across domestic and export markets remain mixed. However, the Company successfully navigated this environment by maintaining a clear focus on enhancing business quality and profitability supported by disciplined cost reduction initiatives. This focus translated into healthy and consistent margin expansion both sequentially and year on year.
Gross Margin strengthened to 39.2% in Q3FY26 improving by 78 basis points quarter on quarter and 310 basis points year on year. For the nine month period, gross margins improved to 38.3% up by 217 basis points year on year. EBITDA margins rose to 7.4% in Q3FY26 compared with 6.8% in Q2FY26 and 4.8% in Q3FY25. For nine month FY26 EBITDA margin improved to 7% reflecting a 272 basis point year over year expansion. The improvement was driven by our favorable product mix, stable raw material cost, improved operating leverage through optimum capacity utilization and continued progress in process efficiencies.
Executions across our plants remained strong supported by better sales operations coordination, sustained focus on yield improvement, quality consistency and energy efficiency. A growing contribution from renewable energy further strengthened cost stability and supported our contribution towards green energy objectives. Moving to financial performance for quarter three and nine months FY26 for the nine months ended FY26 the company reported revenue of 3412 crore reflecting stable performance despite a challenging demand environment. Revenues for Q3FY26 stood at 1093 crore with modernization in volumes across selected segments. Profitability continued to strengthen EBITDA for Q3FY26 increased to 82 crores representing 4% quarter on quarter growth and 41.7% year on year growth.
On a nine month basis, EBITDA stood at 242 crore marking of 56.9% year on year increase. It is encouraging that this margin expansion was achieved despite a mixed demand environment underscoring the structural improvement in our cost base and operating leverage. Profit after tax for Q3FY26 stood at 4 crore after accounting for a one time exceptional expense of approximately 10 crore related to the labor coal linked service cost. Excluding this item, underlying profitability would have been meaningfully higher for the nine months. Pack improved to 17 crore representing a strong turnaround from a loss in the corresponding periods last year.
Coming to our cost structure and operating leverage, the company finance cost structure continued to improve during the quarter reflecting sustained balance sheet strengthening and disciplined financial management. Raw material costs remained stable supported by disciplined sourcing practices and improved inventory management contributing to overall cost efficiency supported by the disciplined sourcing practices and improved inventory management. Employee cost and overhead remain well controlled while improved capacity recognization enable better absorption of our fixed cost. Depreciation for Q3FY26 stood at 36.5 crore while finance costs declined by approximately 4 crore year on year driven by improved liquidity and lower borrowing cost.
On a nine month basis, finance cost savings of approximately 7 crores were achieved compared to the previous years. This improvement was supported by multiple factors including the reduction in the repo rate from 6.5% in February 25 to 5.2% in December 25, optimized working capital requirements, lower inventory levels, effective receivables management and improved trade papers. Management with the effective use of invoice discounting mechanism has helped us to achieve this. On the liquidity and working capital side we continue to see steady improvement. The balance sheet remain healthy supported by improved operating cash flow and effective working capital management.
Liquidity levels remain comfortable providing adequate headroom to support ongoing operations, selective capital expenditure and strategic initiatives. The the company continues to focus on maintaining a prudent leverage profile, optimizing the cost of capital and preserving sufficient financial flexibility to navigate demand volatility. Capital allocation remains selective and disciplined with the investment directed towards project, offering clear visibility on the returns, shorter payback periods and margin enhancements. This includes modernization initiatives and capacity additions aligned with the evolving demand trends. The company remains committed to balance growth investments with financial prudence while prioritizing cash generation, improving our return ratios and strengthening Balance sheet overall Quarter 3 and 9 month FY26 reflects a clear improvement in profitability, margin resilience and financial stability.
The continued focus on execution, excellence, cost discipline and efficient capital deployment positions the company well to deliver sustainable financial performance in the period ahead. Thank you. We will now be happy to take your questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask questions may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question key, you may press star and 2. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. To ask questions, please press star and 1. Ladies and gentlemen, if you’d like to ask a question, please press Star and one to join the question queue. The first question is from Abhijit Rao from VP Capital.
Please go ahead.
Abhijit Rao
Hello. Thank you for the opportunity. Sir, my first question is on EBITDA margin. So the Q3 EBITDA margin improved to 7.4% despite the volume moderation. So how much of this improvement is structural versus cyclical? And how was the revenue and margin mix between yarn and fabric shifted in this quarter? Okay, thank you. Is that all? You have another question? I have more questions on green. Green Pet.
Rajeev Gupta
Okay, so let me respond to this first. Thank you for observing the beta margin improvement from 4.8 to 7.4 in the corresponding quarter. So this beta margin is definitely sustainable because the current quarter, the quarter three in discussion was not an easy quarter or there was no abnormal conditions in the market. Rather the challenges of US tariff and lower demand as a result of that, particularly for net denim Milan and to some extent Cottonian were challenging during this period. So we expect this beta to be sustained in coming quarters in near and mid range, you know, quarters also.
I’ll be happy to take your next question.
Abhijit Rao
So on this margins only, sir, if the volume increases then then also we will sustain this margins, right?
Rajeev Gupta
Yeah, sure, sure. Definitely. We are having a positive outlook for current quarter and next quarter. The volume should look better in the first quarter next year and beta margin in this quarter and next quarter should be maintained in the similar range.
Abhijit Rao
Okay, understood. And sir, how does the LNJ green set fit into the RSWM’s long term strategy? And how is the contribution of all these recent sustainability and green initiatives is impacting the long term competitiveness as well as the short term near profitability?
Rajeev Gupta
Okay, fine. I am happy you asked this question. This is a very important for rswm. Our thought in RSWM is We give back to society what we take. So sustainability is really at the core of all the operations we do in rswm. So we have been working very strongly in sustainability, right. In terms of power consumption, as we discussed last time, 70% of the power we consume now is coming from renewable energy. And we have shifted all of our boilers from fossil fuel to biofuels. So that direction is on. And in this financial year itself, we’ll be going from this to biofuel.
And third is we are a company which is hundred percent compliant to zero liquid discharge. So we do not discharge any polluted water. And there are various other things in terms of, you know, converting the raw material of fat to recycle blister fiber. This LNG green tech Greenpet is definitely a logical extension of our current business which is bottled to fiber. Now we already are doing around 130 metric ton of recycled plaster bottles collection per day. And you know, this gives us a unique strength in terms of this supply chain collecting these bottles and converting this into fiber.
Now with this B2B project, we have to add this further in terms of quality and producing the raisins and use that as ground deal by fmcg companies like Brandswar bottles and you know, Pharma. So these is something which is very close to our heart. Sustainability is something which we believe in. And this project is definitely very, very related to our strength of processing the recycled blister fiber from recycling of the PET bottles. So that is how we feel that we are definitely connected to this project and we believe that we should be in this segment.
Abhijit Rao
Understood. Thank you for that much detailed explanation and all the best, sir. Thank you.
Rajeev Gupta
Thank you.
operator
Thank you. Participants who wish to ask questions, please press star and 1. Ladies and gentlemen, to ask questions please press star and 1. The next question is from Ruben who’s an individual investor. Please go ahead.
Ruben Dias
Yeah. Hi. First, congrats on a great set of numbers considering the demand, I mean the situation, the very demand, you guys still did a very good quarter and also your recent initiatives of Rapid and you know, Kokao looked very promising. So I just had a few questions. First thing, can you maybe give me an update on what’s happening with Bangladesh? There is an issue with Yan from India and maybe if you can give an update on how does that impact rswi.
Rajeev Gupta
Okay, Anything else?
Ruben Dias
Yeah, secondly, I also want to know about this new project of yours. How is that going to be funded? I believe the group is also supposed to put 750 crores, but I think now is it Going to be entirely debt or are you looking at equity infusion and how much revenue expecting from that?
Rajeev Gupta
Okay, thank you, Robin. First of all, I’m extremely happy and thankful to you for sharing, you know, the comfort of the performance that we have during this quarter. I truly appreciate your understanding that this quarter was tough. And across globe the challenges in textile are impacting us badly. So after acknowledging that, let me clearly, you know, come to the point which is Bangladesh yarn import. Bangladesh has a limited spinning capacity which was not used. And as a result the Bangladesh spinos for putting pressure on the government for putting either additional import duty or removing the advantages that is given to, you know, they’re using their own yarn so that quality they wanted to increase.
Now Bangladesh as a country has more consumption of fabric and yarn than their spinning capacity. So one clear the understanding is that they cannot stop importing the yarn, so they have to import yarn. Of course their spinning lobby was trying very hard to put this thing. But overall position of Bangladesh after this US tariff parity with India is now more at the level playing field.
Rajeev Gupta
So. But India has a challenge of garmenting capacity which Bangladesh has in good number. So Bangladesh will remain a very important market for all textile companies in India. And we cannot ignore this market as such. The uncertainty or the difficulties in that market are definitely impacting us in the shorter run for sure and medium run more likely only in the long run. If India dwell this garmenting capacity both in knit fabric and denim, then probably we can become direct exporter of garments and dependence on Bangladesh will reduce. As of today, Bangladesh is important. Of course these challenges do impact us in terms of immediate working.
Now coming to your second question, which was LNG Greenpot project and its funding? The funding is consumed or perceived to be at 70:30 level. So we have a project cost of 427cr. Out of that, approximately 300 crore is likely to be funded through debt. And the balance 127 crore is to be funded by as a form of internal accruals or equity that we would like to do. Now. Revenue from this project would vary from 475cr to 500cr.
Rajeev Gupta
So. But that is the revenue which we are targeting. Of course it will take time to increase the capacity utilization from first year would be somewhere on 70, 75. And it will take two to three years to harness full potential of 500cr as revenue from this product.
Ruben Dias
Okay. And just to understand, you were talking about looking at some low margin products and you were looking at, and you, you were looking at switching from them to another products. So I wanted to understand how, how much have you done of this? What about your non core assets? How much of your non core assets are there that you could look at selling to raise funds?
Rajeev Gupta
Okay, fine. So this is a continuous exercise. You know, you always look at the pyramid of all your product mix. So certain products give you the best margin. And there are at the same time few products which give you very low margin. And these are the products which are used for filling the mill and ensuring that we utilize capacity. The journey for profit enhancement always is to increase the products which give you more margin and try to reduce or eliminate the products which are giving low margin. We did this exercise across all businesses. Few businesses where market sentiment was okay, we are able to implement this fully.
Few businesses like our net business melange business, or to some extent our denim business, where we could not do this very effectively because of the market sentiment. This can only be done when you have enough of orders in your order book, then you can decide on this. So that journey is on. Fortunately, in few of the businesses we did it. We also shifted few capacities from low value added to high value added product. Just to share an example, we shifted certain volumes for our synthetic yarn business from gray to dye. So we were making PV gray, which we have shifted to PV dye.
Understanding that PV died of course gives better value. And we had almost 20,000 spindles which we shifted in unit number nine of our Currigram location from gray to dyed. So this is a continuous journey. We are working on this concept and we may have to work for next 3, 4 quarters continuously to travel this journey which we have initiated.
Ruben Dias
Okay. And non core assets, any, any numbers that you can share that you know, we could look at selling of some.
Rajeev Gupta
So there has been not any non core asset per se, but few assets which were not giving us the required margin and the required return. Particularly if you ask, what we have implemented so far is true Shata spinning, which was giving us a very low margin. And it was completely outdated in terms of age of this machinery. So that is something which we have used wherever that part of the machine setup was usable in our other units for upgrading our facilities or creating more flexibility in our manufacturing setup. And second is we went for the new boilers for going to this biofuel.
And as a result our old thermal boiler, which was a coal base, became, you know, redundant and useless. So that we are disposing of otherwise per se. The company did not have any non core assets which was redundant and not being used.
Ruben Dias
Okay, and one last question. Before I come back in the queue after that, one last question. Is working capital. Your working capital is still quite high. Do you get any concessions or any low interest rates for this working capital? Is there any textile scheme for that?
Nitin Tulyani
So Rubin, coming to the question around working capital, we are managing the working capital effectively. So what we have done is we have moved to the vendor discounting platform in which we are getting a benefit with respect to the interest arbitrage. So if you talk about our own personal working capital it comes less than 9%.
Ruben Dias
Okay. Okay. This includes across. This includes everything we have in terms of working capital. I’m telling you the average number. Okay. Okay. Thank you.
Rajeev Gupta
Thank you.
operator
Thank you. Next question is from Rohit Ori from Progressive Shares. Please go ahead. Hi Rajiv ji. We see RSWM 2.0 transform and achieve new milestone under your guidance.
Rohit Ohri
Thank you sir.
Rajeev Gupta
I have three, four questions. I’ll ask one and then probably follow up on the others. In terms of the Green Pet LNG project, sir, so have you identified the land and we already having the technology with us or are we going to go for some tie up on maybe JV over here? Okay, so we have Mr. Manoj Bansal with us who is Chief Transformation officer and he is very closely working on this project. So other than me responding to this I’ll request Manoj to. So regarding the land, we’ve already taken. Land in a place called Utnam which is an MP. So we have identified 44 acres of land for this project. Okay, so that is already done. And sorry.
Rajeev Gupta
Regarding the second part of technology. Yes, we’ve already financed technology. So there are two important machine status. One is washing line, second is a paradising line. So we already finalized the vendor for that. Both of them. And just to give you kind of comfort we have taken one of the. Best technology from you. Sorry sir, we have taken technology from Starlinger. It’s a European brand. One of the best technologies in this segment of product mix. Simon, next question is related to this development which we’re having from BAK plus Advance which is joint venture between and Century. Right. So if you can, if you can take us through like what was the thought process and are we so confident about the machineries that they serve? Because that’s a new operation that they have started probably I think in the 23rd of April is when they started. So that gives us kind of confidence that these machines are going to do well for us.
Nitin Tulyani
Sure, sure. So right. They actually set up this product with the thought of doing a sampling, disco sampling etc. But somehow they couldn’t connect to that. So this was almost a year old. Plant where machines were not used. All the machines are European machines, all good brands. And then they had a printing kind of setup as well. So we evaluated and found that these machines are actually a well fit for us because we didn’t have a printing facility. So with this machine probably we it solves two purpose. One, we’ll have a printing facility almost 120 tons per day per month. And then probably all these machines which are being stained we’ll be using for modernizing both our Chate and Modi plants. So this fits well in our kind of requirement because the machines were new, all European, all energy efficient machines and not used actually.
So we could get the good deal. And we shifted. Now we are actually in the process of shifting and modernizing the plant. And this will give us as you know probably earlier. So this will give additional process called Printing 120 which following this printing now we can actually you know serve other kind of assignments like you know, kids beer and lady lightweight garments. So that was the basic purpose of taking over this plant from.
Rohit Ohri
Yes sir. If you notice that we see these articles in business India also where Rajiv and Riju they have both mentioned about industry focus. But sir, my question is that how much of this modernization or maybe replacement of the old technology, how much of this work is spending? If Nitin can help us through that, what sort of investments are we looking at or what sort of capex are we looking for new machineries. See the total the cost of the acquisition was 54 codes.
Rajeev Gupta
Otherwise the entire organization actually is raised in 92 crore. This is what I mentioned last time also. So the total expansion for Grid policy is 92 crore. So we’ve already started the process as indicated earlier. So we intend to close entire expansion setting the printing and modernizing by 1H27. So we are expecting that the second half probably be able to get the full benefit of this expansion printing as well as modernization process. And with this expansion our capacity will improve from 700 to 900 tons per month with 120 tons printing. So this gives a complete balance to our product mix.
So we get a 20% additional capacity plus additional process for printing which will actually help us to reach to different customers. Because the customer they look for the complete product mix. So printing actually is complete about range. So that is a basic thought process.
Rohit Ohri
Sir, in addition to this replacement that is happening, are there more replacement of machinery? That was the question.
Rajeev Gupta
No Rest every machine is in line. Only the few old machines will be placed. Otherwise our plant is absolutely well balanced. New machines are there. So we are getting the potential kind of efficiency from all the machines. So beyond that I think nothing for modernization.
Nitin Tulyani
Just to add what Mano said, in addition to knitting, there are other businesses. Their modernization is also in discussion and we are going purely on the basis of payback in case of modernization making sense for either digitalization or quality improvement or product production improvement per se. So that journey is on. We have started doing it in phase manner. So RSWM being a 65 year old company, so the machinery part definitely, you know, varying. We have latest machine and we have machines which are decades of performance already delivered. So we are very consciously monitoring each and every machine and their performance.
And based on the payback and priority, we are doing it. So major thing that we done is the power efficiency improvement. The machines which are power inefficient are in the topmost priority to us. And similarly the machines which will give us more productivity in terms of manpower, that will also be, you know, considering. But this is going to be phased manner because this is a big section and this will take time to, you know, improve the age of the machine park.
Rohit Ohri
Correct?
Rajeev Gupta
Yes. You have a question with respect to the industry 4.0 technology which you mentioned. Okay, so just update you. As a part of Industry 4.0, what we are doing is we are focusing upon bringing in the technology. Recently we did a trial with a company called Green Stitch. IT is a SaaS based organization who has helped us to automate our business responsibility and sustainability reporting with the element of AI in it. And this year we will be publishing our first report using that tool. So that tool is helping us to integrate the data which lies in ERP with the help of integrating the data which help us to maintain a proper audit trail and focus upon the authenticity of the data being recorded by the system.
Second, what we have done is we have also worked upon with respect to the improvising of our R and D centers. So we have done certain investment in that. With respect to the research and development, we are working on digital tools for preparation of the samples and the development of new product technology. So like Rajivi said, this is a journey and it has already been started. And we are continuously identifying the project pertaining to the industry 4.0 and moving ahead.
Rohit Ohri
Sir, last question. Two parts. First one, that how much on a yearly basis have we allocated that every year we will spend approximately X crore rupees for replacement or modernization of machines. And second question which Rajiv Ji also mentioned that we are doing quite a lot of good work which we can also see for the power saving. My question is that from somewhere around 6% or 7% EBITDA margin can we inch towards 10% or 11% EBITDA margin in the next 6 to 8 quarters.
Rajeev Gupta
Thank you Rohit. I think you also share the you know forward looking outlook for the company. I will be one of the happiest person when we touch the double digit and intention of entire management including Manoj Nitin Shrinder Ji is to take this company in next maybe six to eight quarters to that level of double digit. And with this US tariff, UK Tariff and EU FTA on so there is every likelihood that we may travel this journey even faster. Now coming to your second question which is how much fund we are allocating for modernization and this so I can share with you.
Last year we did modernization capex to the tune of almost 50cr. So this is only based on.
Rajeev Gupta
The. Cash flow and the paybacks payback period which is encouraging to get the benefit immediately within a span of 12 to 24 months. So based on this we’ll continue to do almost similar kind of figures would be there in next two to three years. We do not want to skew our cash flow too much and work very aggressively so that you know it impacts my routine working as well. So we need to strike a balance between both modernization and ensuring the current balancing also.
Rohit Ohri
Okay, so all the very best for achieving that double digit EBITDA margin. Hopefully we see that soon. Thank you for answering all my questions. Thanks a lot. Thank you. Thanks a lot.
operator
Thank you. Before we take the next question a request to participants to please limit your questions to two per participant so that the management is able to address questions from all participants in the conference. The next question is from mithilbua from unlisted india.com Please go ahead.
Mitul
Yeah hi sir. I guess I missed out on that but what is the power cost savings to switch to renewables like per unit savings?
Rajeev Gupta
Okay, so we have done our power capex in two ways. One we are going for behind the meters your generation of solar power by 9.6 megawatts. And second was the 60 megawatt agreement with Adani for captive group, captive RTC round the clock power. So if you look at per unit saving would be varying from 1 to 1.5 rupees per unit and thereby impacting our overall consumption per kilogram giving benefit to us and we become little more competitive to our peers. In Rajasthan. Because this all triggered with the increased tariff by Rajasthan which was reducing the discom tariff, you know, discounts by 1.02 rupees per unit.
So that necessitated the need of working on this. So it is serving us two purpose. One is the saving and second is our green journey.
Mitul
So we have spent some capex on this, the transmission line and overall for the green.
Rajeev Gupta
There are two things which I said. One is for Adani. Adani, we paid up the equity for being a partner to this group Captive and this SPV that we paid was to the tune of 60 Cr. And for this behind the meter we would spend something between 22 to 25 Sierra as a capex for having this 9.6 megawatt solar power installation.
Mitul
So what is our share in the SPV percentage?
Nitin Tulyani
So it is 26%. That is something, you know, as per legal, we have to. It’s 26% in equity with the shareholder voting rights.
Mitul
Okay, okay, okay. So. So. So one more question. Like what is the company’s plan like on the roc? So wherever we headed towards. Because ROC is the ultimate thing what investors look at. So. Yeah.
Rajeev Gupta
Yeah, you’re right. ROC is something which we have to work very strongly. So I can only, you know, share with you that it is improving last three, four quarters. If you see the last year’s number and this year number will be able to share that figures with you.
Nitin Tulyani
So coming to the ROC return on capital employed like it is directly linked to our profit before interest and tax. Like if you have taken a look at our investor presentation, like if you compare it year over year number it has increased from 3.3 to 5.0. So the graph is upward and like Rajiv ji said, we will continue to increase the ebitda. So similarly this ROCE will be on an increasing trend. If you remember, the highest we have achieved is 13% which was somewhere in year 20 to 23. But we will be definitely moving ahead steadily with this ratio and we are continuously focusing upon it.
Mitul
Sure. Okay. Wish you all the best. Thank you.
Rajeev Gupta
Thank you. Thank you.
operator
Thank you. Next question is from S.B. veya who’s an individual investor. Please go ahead.
S.P. Veya
Good evening, sir. Your presentation is very thorough and I could get most of my questions from there. Only one question I would like what sort of growth actually you are targeting for the next year because. Right, I understand. Last two, three quarters because of geopolitical pressures we are not able to. This is the kind of growth you were really looking forward to. But now actually things are getting nearer politically. So what sort of growth you are planning in your turnover in the next year, please.
Rajeev Gupta
So first of all let me be, you know, thankful to you for your appreciation for the presentation and the performance. Mr. Sp the growth has not been there in these nine months because we consolidated and work more on the profitability than on revenue. In fact we consolidated few of the products which were not the yielding profit. We reduced it and as a result if you see the nine months and quarter, both revenue numbers are lower than the previous year whereas beta number for the quarter and for the nine months are better off. Now next year we will try to harness full capacity utilization for net.
Rajeev Gupta
And. We are also, you know, targeting additional capacity utilization for all other assets wherever there is a scope, major expansion that we are targeting is net. So that will give us some additional revenue for the additional production of 200 tons of that we are going to do. Other initiatives in terms of production are largely for modernization and improving our cost effectiveness. So revenue really is not under focus at this point of time. Of course we will come to the level of around 500,000 cr hopefully next financial year. 26, 27, 5,000 crores.
S.P. Veya
That that still gives you a growth of almost 10% because right now you are at 3,400 crores. So I presume that right, if you repeat the same sort of performance as you had done the last quarter will give you additional 1100 crores or so. That gives a total of 4500. So growth of 10%. You are ambitizing, is that correct sir?
Rajeev Gupta
You are absolutely right. So that is something which we are targeting.
S.P. Veya
Okay, okay. And that will make a capacity of what percentage, sir?
Rajeev Gupta
So in yarn you already work on high 90s in terms of capacity utilization. The major challenge of capacity utilization has been in knit and to some extent Milan and denim. So I think these Milange and NIT section we’ll improve our utilization and other whatever the low performing assays or low performing products are there that already have been identified and eliminated. So I think there is no negative revenue growth likely to happen now. The only thing that we are likely to do is better capacity utilization for net Milan and thereby having better revenue.
operator
Thank you. The next question is from Ruben. Please go ahead.
Ruben Dias
Yeah, I just had a few follow ups. First is we’ve been having discussions with Europe and all so maybe can you give us some guidance on how that’s turning, how that’s shaping up especially after the FTE amount.
Rajeev Gupta
So India was levied 8 to 12% import duty by EU and UK. So that was giving us Direct disadvantage against Bangladesh, Pakistan, Sri Lanka and Vietnam. Now with this FTA with the EU which is likely to be reality in this January, and this UK FTA which is in discussion and also maybe through in this two to three quarters, we will have the level playing field. And there is a huge potential for Indian governments, Indian industry to take on this. So as per estimate, the CAGR of 8 to 10% is likely to be there. And we may have, you know, the growth in terms of import by these countries from you know, 260 billion is the import that EU do for textile and Indian share is almost around 8 billion.
And there is a possibility to go up to 35 to 40 billion in this case. So entire industry is looking forward to make this happen. And this US tariff parity which is brought back to 18% will also give us all a very positive outlook maybe in the first or second quarter. Next discuss.
Ruben Dias
Okay, and this billbanker Energy type that HED Green Tech is going to be listed. So how much percentage stage would RPM have in that listed entity after it?
Rajeev Gupta
So Nathan, this slide. So there is a company called Vilwara Energy Limited and we are holding 7.5% stake in that. So as the value of the shares of the company will appreciate accordingly we will be getting a pro data benefit. Plus we also have a huge investment in HEG and that will also be increased.
Ruben Dias
So when he Green Tech List would you have like 1 to 2% stake in that company? Is that right? Please come again. When once heg green tech list will RWM hold like a 1 to 2% stake in that company?
Rajeev Gupta
No, not like that. So we. So HEG Green Tech is altogether a different setup. There are two companies. One is Binwana Energy limited in which we are holding certain percentage of share which is approximately 7%. And second entity is HEG which is a standalone entity. We are also holding certain equity investment in heg. So accordingly, as the valuation of the company goes up, RSWM will also getting the benefit in terms of that.
Ruben Dias
Okay, okay, okay, fine. Maybe I misunderstood it. Okay. The shareholding is available in our audited balance sheet, correct?
Rajeev Gupta
Correct. So I thought that it’s going to be merged and you will be getting HEG Green Tech shares. That’s what I understood from it from Energy and heg. It’s split, right. So I thought you would be.
Ruben Dias
Yeah, you’re right. Thank you.
operator
Thank you very much. That was the last question. I would now like to hand the conference over to the management team for closing comments.
Rajeev Gupta
So in closing I extend my sincere gratitude to our employees, stakeholders and partners for their unwavering support. With collective effort and a shared vision, we are all positioned to drive innovation, strengthen our market and deliver sustainable value. The road ahead holds great promise, and I’m confident in our ability to grow and succeed in many years to come. Thank you. Thank you very much.
Nitin Tulyani
Thank you very much.
operator
With that, we conclude today’s conference. Thank you for joining us, ladies and gentlemen. You may now disconnect your lines.