Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
RSWM Limited (NSE: RSWM) Q4 2026 Earnings Call dated May. 07, 2026
Corporate Participants:
Rajeev Gupta — Chief Executive Officer, Joint Managing Director, Non Independent Executive Director
Nitin Tulyani — President & CFO
Manoj Bansal — Chief Transformation and Risk Officer
Analysts:
Richa Singh — Analyst
Saket Kapoor — Analyst
Rishabh Sharma — Analyst
Ruben Dias — Analyst
Rohit Ohri — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the RSWM Limited Q4 and FY26 earnings conference call hosted by Rick Capital. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star 100 on a touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Richard Singh for Management introduction.
Thank you. And over to you, ma’. Am.
Richa Singh — Analyst
Thank you, Yusuf. Good evening and welcome everyone to to the RSWM Limited Q4 and FY FY26 earnings conference call today. From the management we have Mr. Rajiv Gupta, Joint Managing Director, Mr. Manoj Bansal, Chief Transformation and Risk Chief Risk Officer, Mr. Nitin Tuliani, President and CFO Mr. Surendra Gupta, Chief Compliance Officer and Company Secretary. Before we proceed with this call today, I would like to take this opportunity to remind everyone about a disclaimer related to this conference call.
Today’s discussion may be forward looking in nature based on current beliefs and expectation of management. It must be viewed in conjunction with the risk that business faces that could cause or defer from future results and performance which is expressed or implied by such forward looking statements. I now hand over conference to Mr. Rajiv Gupta for industry outlook followed by Mr. To 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
Thank you, Richa. Good evening everyone. I hope you and your families are doing well. It is my pleasure to welcome you to RSWM Q4 and FY26 earning conference call and we sincerely appreciate your continued interest and participation. The financial results of RSWM press release and investors presentations have been shared with the stock exchanges and we trust you had an opportunity to review these. Let me start by briefly setting the contest for global and Indian economy. As you all know, the past year, the year FY26 has been a period of strategic transformation and disciplined execution for rswm.
While the global textile landscape remains complex due to continuous challenges on account of geopolitical factors. I am pleased to share that we have navigated these headwinds with the regions and could turn around company performance which is evident from the results shared yesterday for FY25 26, our focus has been on improving the quality of earnings rather than chasing only volumes at a cost. And the approach is now beginning to reflect in our margins and overall profitability. Looking at the global environment, textile industry is Currently going through a soft patch with demand normalizing rather than sharply recovering.
Discretionary spending, especially in the Western countries continues to be cautious which is impacting overall demand. At the same time, we remain mindful of the challenges facing the industry including government regulations. For example, road tap was taken off for part of the years. Import duty on cotton was there for most part of this quarter. US tariffs is a concern which all of us know. The recent impact of Gulf War is also very significant. We have headed to global uncertainties. These things and these things have also disrupted the trade flows.
The impact has been visible in terms of volatility in the key raw material cost and also significantly increasing the other cost components like dyes and chemical cost. Freight cost impacting overall cost structure of the all textile products. Another key concern has been energy availability, especially gas. Gas availability due to restrictions of the route because of this Gulf War along with the supply disruptions on the hubs like Surat has affected the part of industry value chain. RSWM is also impacted because of this disruption of gas especially our Danube division has suffered production for some days during the month of March.
Despite these near term challenges, there are encouraging structural positive things now. Progress on UK, EU and New Zealand FTAs is expected to be open soon and this will bring new opportunities for the entire textile sector. At the same time we are increasing our focus on new geographies, adding new markets to our all products to diversify our revenues and reduce dependence on few markets. Internally we continue to drive valuation by improved internal processes and review mechanism with a strong focus on execution discipline and operational efficiencies.
Our strategic direction remains clear with more focus on value added products enabling us to enhance margins over the higher up value chain. Our productive shift towards renewable energy which we shared in the last conference call, having a tie up with Adani round the clock power. We are now having around 70% of our energy mix coming for sustainable sources like wind and solar and this continues to be a key differentiator helping us to mitigate the volatility and strengthen our long term competitiveness.
While these external challenges persist, our strategic focus remains unchanged. Strengthening our product mix, driving the value added growth, improving operational efficiencies and maintaining strict control on our cost. As we step into FY27, we do so with a cautious but confident outlook. We are prepared for a gradual cooling in the global markets by maintaining downside readiness and also upside opportunities that we are likely to have. Our approach is capital allocation would remain disciplined with a strong focus on capital expenditure projects that offer shorter payback periods of one to three years particularly in the area of modernization and productivity improvement which help us in management of cost and also creating more competitiveness to us.
Also as you are aware, our Board of Directors in April approved the proposal for inclusion of equity through the preferential issue of 24.7 lakh convertible grants which are equivalent to almost 36 CRS to LNJ Textile Advisory LLP which is promoter company of LNJ Bhijwada Group. This shows the confidence of promoters in the company’s performance, again a positive signal for all our investors. As I mentioned earlier, FY26 has been a turnaround year for RSWA where we could move from negative EBITDA from a negative path to a positive path.
So this significant improvement we are sure we will be able to carry this forward and this will further strengthen our financial position for FY26 27 through our financial prudence, strong operational controls and growth oriented initiatives. I would like to thank all the members of RSWM family for dedicated efforts during this full year FY 2026 board of directors for the timely advice, confidence of our value shareholders and support of our Chairman which enable us to turn around this company in this year.
With visible margin improvements across quarterly and full year periods, we believe RSWM is well positioned to deliver profitable and sustainable growth in the coming quarters as well. With this, I would now like to hand over this call to our CFO Mr. Nitin Thuliani to take you through the financial performance. For more details, over to you Nitin.
Nitin Tulyani — President & CFO
Thank you sir. Good evening everyone and thank you for joining us on the Q4 and FY26 earnings call. I’ll take you through the key financial highs and the operational metrics for the quarter and full year period ended March 2026. The business environment during the quarter reflected a gradual stabilization across the textile value chain following a period of demand volatility. While recovery in the global market remains measured, we are seeing early signs of improvement driven by the normalization of the inventory level and relatively better visibility in the select sector.
From an industry perspective, there is a clear shift toward the value added and the differentiated product category. Coming to the financial performance for Q4FY26, revenue from operations stood at 1142 crore resisting a quarter over quarter growth of 4.5% while declining 9.1% year over year primarily due to weaker export demand. Our exports showed a recovery of 11.4% quarter over quarter at 368 crores indicating early signs of improvement. Our domestic sales remain relatively stable at 774 crores reflecting resilience in the domestic market despite overall demand softness.
Power and fuel cost stood at 123.3 crore in Q4 reflecting a sequential decline of 4.6 crore from 127.9 crore in Q3 FY26 driven by the improved utilization for the renewable sources of energy on a year. On year basis, costs were marginally lower by 1.5 crore compared to 124.7 crore in Q4FY25 indicating a stable input cost management despite the external volatility. EBITDA stood at 85 crore up 4.3% quarter over quarter and 8.5% year over year with margin being stable at 7.4% quarter over quarter and improving by 115 basis points year over year supported by operating leverage and cost efficiency.
Now coming to the full year 26 financial performance, our revenue from operations stood at 455 crore reflecting a year or decline of 5.6% primarily impacted by the weak demand conditions particularly in the first half, domestic revenue declined 4.5% while exports were down 8% year over year. Despite of all these odds with respect to the declining revenue, we have been able to sustain our margins. Our gross profit improved to175.3 crore up by 1.4% year over year with the margin expanding to 38.1% an increase of 246 basis points primarily supported by better raw material cost management and improved spreads.
In the second half the cost of raw material declined 9.5% year over year to 2801 crore. Our employee cost marginally increased by 1.8% year over year while power and fuel cost reduced by 3.4% year over year reflecting effective cost control for the full year there has been a a reduction of 17.6 crore in the overall power and fuel expenses. The consistent reduction underscores the company’s focus initiative on energy optimization, operational efficiency and cost realization contributing positively to the overall margin performance.
Our other income increased significantly to 51 crore in FY26 from 29 crore in FY25 registering a strong growth of 22 crore a year over year of 74.5% primarily driven from the gain from the sale of the non value assets. The full year finance cost for FY26 was 123 crore down from 135 crore in FY25, a steep decrease of 12.5 crore or we can say 9.2% compared to the last year. Following the enactment of the income tax act 2025 which got implemented from 1st April 2026 which provide us option to move to a conceptual corporate tax overall at a rate of 25.17% including surcharge and sales carry forward of math credit.
We have reassessed our deferred tax liability at 25.17% as of March 31 compared to 35% earlier. The company has decided to opt for this new tax regime from FY27 resulting in the overall reduction in the deferred tax liability by 22.66 crores. Other expenses declined 8.3% year over year to 441 crore. Highlighting the continued focus on operational efficiency. The EBITDA stood at 327 crore from 233 crore registering a strong growth of 40.5% year over year. With margins improving to 7.1% from 4.8% and expansion of 231 basis points.
Our path stood at 52 crore compared to the loss of 41 crore last year with margin improving to 1.1% from being negative which clearly reflects a strong turnaround in profitability. From the balance sheet perspective, our net worth increased to 1372 crore in FY26 from 1308 crore in FY25. Total borrowing reduced to15.10 crore from 1621 crore last year reflecting continued deleveraging in a stable capital structure. The capital deployed remained steady at 3468 crores. On the asset side, we saw improved working capital efficiency with inventory reducing to 620 crores from 730 crores and trade receiver declining to 631 crore from 696 crore.
Our financial assets have increased to 387 crore from 299 crore. Primarily on account of the investment the company has done in Adani Power and strengthening our own liquidity indicating ongoing investments in the growth initiative. Overall, these movements reflect disciplined capital allocation, improved working capital management and a stronger balance sheet position. Now with the stronger balance sheet, improved cash flows and continued investment in modernization of our plants, we believe the company is well positioned to deliver steady revenue growth and margin expansion in FY27.
Thank you. We will now be happy to take your questions.
Questions and Answers:
Operator
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press STAR and one on that headstone telephone. If you wish to withdraw yourself from the question queue, you may press STAR and two participants are requested to use handset while asking a question. Ladies and gentlemen, we’ll Wait for a moment while the question queue assembles. Participants to ask a question. You may press star and one first question is from the line of Saket Kapoor from Kapoor and company.
Please go ahead.
Rajeev Gupta
Yeah. Yes,
Saket Kapoor
Yes. Thank you sir for the opportunity. And as you mentioned that we have laid the foundation for improving our return ratios going ahead. So in context to that, if you could just give us some color of what will bring that rate of change in terms of improved profitability in terms of how the utilization levels are currently and what are we anticipating going ahead? Firstly,
Rajeev Gupta
So if I could gather you right, you are talking about the utilizations of the plant operations.
Saket Kapoor
Yes, plant operations. And how are, what, what exactly are we expecting when we are alluding to the fact that our profitability will be improving on our profitability going ahead.
Rajeev Gupta
Okay, so the year under discussion, particularly the quarter four, has been really, really challenging for entire textile industry. Needless to mention this, you know, US tariff was already creating a lot of issues. And then this disturbance in gulf between Iran and Israel put many things for, you know, a challenge, particularly availability of gas and then, you know, transportation period for export, freight cost for export to these countries, dyes and chemical costs. So all these things have actually impacted majorly in the quarters under discussion.
Now when we say that we are better hopeful or we expect things to be better off in the coming quarter, one is that we expect the things to be normalizing and normalcy to prevail in this period. But at the same time we also are looking at for better utilization of assets, particularly Danim and Net. These are the two business which were impacted largely because of this, you know, geopolitical situation. Our other businesses, synthetic yarn and sustainable textile business which is recycled blister, are more domestic businesses and the challenges were comparatively less.
Denim and NIT are the most affected. And then Milan particularly was impacted because most of the sales are deemed export. We supply to the governmenters who are exporting internal. That was also disturbed. So we expect utilization in these three businesses to be slightly better and the cost also to be controlled in current quarter and the quarters, you know, now onward. So this probably will help us in getting the better margins. Otherwise focus on internal efficiencies. Internal operational controls will continue to be the same and we are likely to get benefit of whatever steps we took in last four quarters for the same.
Saket Kapoor
Sir, in terms of utilization of the assets, if you could just give category wise how what have been the utilization in percentage terms.
Rajeev Gupta
So if you look at in synthetic and fiber business, we are more or less utilizing this Optimally in Melanian, the utilization are to the tune of 65 to 70% which we expect to go back to 85 to 90% level
Rishabh Sharma
In, you know, maybe within this quarter or
Rajeev Gupta
Early next quarter. Denim utilization has been comparatively better. We currently are able to utilize 80% flaps and we can improve it further to 85 to 90% to optimize our operations. Net operations were affected more. We were having the utilization below 80% which can go to plus 85%. So I think in all three businesses there is a potential to improve utilization between 7 to 10% in the coming quarters against the utilization level in quarter four.
Saket Kapoor
Okay. And the disturbances which we face, particularly with the availability of gas that things have been corrected and post March exit are things back to normal or the cost and all have gone of the cost of gas, procurement of gas.
Rajeev Gupta
So get you are updated on these issues. Probably though the availability is better. We had the disturbance in mid of March for two, three days. And then you know, on and off disturbance because of availability throughout the March. But now in April availability of gas is there. But the cost has significantly gone for upward revision. So that is a challenge and we expect this to resolve maybe towards the end of this. But that is only a hope till the time things normalize in Gulf. So this cost may still continue to be an issue with us.
But availability for sure is okay. Now
Saket Kapoor
Can you give some more color on the spread part then how although there have been a cost increase so that that have been passed on to your customer. And how have the currency that spreads in our in our yarn business.
Rajeev Gupta
So spread in business to business are different and they are maintained in two businesses is improving. But the business under discussion is damning there this gas increased prices has impacted. And as you know, you have already booked orders in hand passing on the cost or trying to increase the prices happen for the future order. So there is a lag between cost increase and the price increase. To that extent you always suffer. And sometime it is not possible to increase all cost to the final product.
Now particularly if I talk about Danima, there have been four or five fronts where cost has increased. One is gas, second is Bison Chemical, third is freight and fourth and biggest is yarn prices. So though as a company we have advantage if the yarn prices go increase for our yarn business. But for the denim yarn denim business, the increase in the yarn prices both in cotton or in plista cotton have impacted increase in the price of denim per meter. But passing on it to the customer always take time and there is a lag.
So to that extent, our margins and the spreads are impacted in denim to some extent. This also impacted our knitting business. But for other business, normally the round deal stockage and the sales are more or less of the similar days and the spread is kind of maintained. But passing on the increase in cost to the customer normally takes some time.
Saket Kapoor
Right. Last two points. Mr.
Operator
Kapoor, maybe request you to reach. Yeah, yeah. Thank you sir. Before we move to the next question, a reminder to the participants to ask a question, you may press star and one next question is from the line of Rioben from Equity Intelligence. Please go ahead.
Ruben Dias
Yeah, Hi, good evening. First, congrats Mr. Chinungwala and Rajiv and the entire RSWM team on delivering a very good set of numbers, even though it was a very challenging period. So I just wanted to say thank you to you all. So my first question, I just want to know, see, in your spinning division, right. What percentage is currently, you know, structurally not viable at the current yarn and cotton spread? And what are the plans for those divisions? Are you looking at shutting it down or are you looking to continue to operate it, but maybe at lower levels?
Can you help me understand that?
Rajeev Gupta
So I appreciate you continue discussions from the last investors call we had. So last time we discussed that we’ll cut down certain operations spindles or the products where we are not able to have the right margins. So we did that as we discussed in the last conference call. Also operations of Charta spinning were curtailed which was having inefficient production and we were not able to clock the required margins there Few other products within the businesses were changed for the better products where the margins were there lot of work has been done on product mix and elevating the product from low contributing to better contributing products.
So at the same time we are not envisioning any close of spindlage or loom or you know, other operations in this quarter and next quarter for not of those challenges. Probably that journey is largely done and we will keep on evaluating as and when it is required.
Ruben Dias
Okay, so see at the current the spread, I mean your margins are EBITDA margins are around 7.6%. So it has been steadily increasing. But where do you see this the spread going to be? Do you for in order for algorithm to hit like a double digit ebitda, is it dependent on maybe demand or is it going to be an internal change or is it customer mix? What would bring or make what changes would be required to hit that double digit with the margin?
Rajeev Gupta
So first of all, as you want it to reach Double visit. More than that, I want it to be in double digit at earliest. So that is, you know, we are aligned fully there. Now how this will happen, it cannot be because of one particular thing. It has to be combination of many things. All internal operations have to be, you know, at right level of performance. We have to closely participate with the customer in terms of product development, creating value for them and partner with them in their product development.
And also we have to be efficient in our supply chain in terms of sourcing our raw materials and ensuring that we sweat our assets. Right. Utilize them right. And you know, work on the inefficiencies continuously. So the directions that we have started in FY26, we like to continue in the coming quarters as well. And as the markets start looking slightly better, we, you know, more than you are looking forward to see double digit EBITDA at the least.
Ruben Dias
Okay, and one last question before I head back into the queue. So I’m also following the turnaround series. I think that’s also very nice. I follow it every week that you put out. Thank you so much.
Rajeev Gupta
Thank you so much.
Ruben Dias
Yeah, I think that it’s really good. So see the thing is when we compare your working capital to your peers, it still seems to be slightly higher. And you were talking about cash flows last time. So is there a targeted working capital to sales ratio you’re looking at? Is that something you have in mind?
Rajeev Gupta
So I agree with you. But when you compare, you know, with the yarn people maybe about working capital ratios are slightly higher. But please be aware that we are a combination of five businesses. Our working capital in cotton yarn, Milan yarn, then synthetic yarn is more or less in line with the peers in the same industry. And now denim has a different set of working capital where you know, oak stunning has a different this thing. But we are continuously working on this area and Nitin want to add something in this.
Let me hand over to him.
Nitin Tulyani
So just adding to what Rajiv said, if you come to the working capital which is visible in the balance sheet, it consists of two portions. One is in the form of the structured term loan which we have taken in the recent past for the expansion of our denim business, knit business as well as the unit which exists in Barswara. So as the balance sheet date we have roughly 700 crores of term loan which forms a part of the total borrowing. But if you talk about the working capital, it’s close to around 800 crore which is structured across all the different businesses which we have.
So I hope this answers to your curiosity of the working capital.
Ruben Dias
Okay, sure. Okay.
Nitin Tulyani
We are repaying them year over year. And hopefully in next three years our entire loans will be finished. The major portion of it.
Ruben Dias
Okay. Okay. Thank you. I’ll get back in the queue. I have a few more questions. I’ll get back in the queue.
Nitin Tulyani
Thank you.
Operator
Thank you. Participants, to join the question queue you may press Star and one. I repeat, to join the question queue you may press star and 1. Next question is from the line of Rishabh Sharma from VT Capital. Please go ahead.
Rishabh Sharma
Hello. Thank you for the opportunity. Could you quantify the patent type of the deferred tax reversal in quarter four and help us understand the normalized earnings permit going forward.
Nitin Tulyani
So if you want to understand the path. So in overall there is a impact of 23 crores for the deferred tax liability which we reverse. If we have opted for the existing income tax rates we would have closed the path at 29 crore. And this is clearly given in the notes to accounts. Also if you have gone through the same.
Rishabh Sharma
Okay, got it. And the revenue decline has been sharper than the industry expectations over the last few quarters. So are we losing market share in any categories or it is the weakness entirely demand driven?
Rajeev Gupta
Okay, so good that you observed that I was expecting this question. So this revenue decreases in two fronts. One is that we closed Chata operations. So for the year we had approximately 250cr of revenue from Chatta spinning. So which has impacted this revenue de growth. And second has been tough marketing environment particularly because of US tariff which we have witnessed in quarter three that impacted our major exports. So I think these are the two major causes which has impacted this revenue.
And as I mentioned earlier we focus more on the profitability than pure revenue. So wherever it made more sense for us, we worked on the operations in a way that we may have less volume but it should be profitable revenue.
Rishabh Sharma
Okay, got it sir. Under RSWM 2.0 we are seeing that turnaround in the company’s profitability. Can you share the current year KPIs or target under which business initiative particularly around margins and rot.
Rajeev Gupta
So I’m happy that you want to know the current year targets and everything I can share with you that we will continue to work in the similar fashion and the outlook at this point of time is that quarter is going to be slightly or slightly better recurrent to last quarter and our KPI remains beta revenue and you know, positive cash flow. So working capital control, beta enhancement and revenue maintenance are the major key capex that we that major three KPIs that’s in that organization is working on then you have each department have operational KPIs but broadly as an organization we are focused for sustainable growth.
Rishabh Sharma
So sir, in the ebitda, in the EBITDA which factor would be the most positive step which will be giving the outcome positive.
Rajeev Gupta
So there has been, you know, you improve where you lack. So we have been, you know having lot of challenge in the knitting business in the year 26 and with the new FTA with UK and EU happening so and this US tariff now being settled, this business of knit is likely to improve and a beta announcement will happen from there. Secondly, as we discussed in last and call prior to that that we are having 92 crores of expansion in our knitting business. We are adding printing as one of the segment. So as a result of this new capex we may also add beta in third and fourth quarter in our knitting business.
Accordingly
Rishabh Sharma
Sir, any capex plan in the future?
Rajeev Gupta
So currently we are not having any major capex. There are two things which are happening. One is this netting expansion which is under execution and we are implementing that. Then we have certain modernization capex for all the plants where we want assets which are old that we replaced. And these are the two, you know, major things we are doing in rsw.
Rishabh Sharma
Thank you sir. Hope we are doing better results in the future. And thank you, thank you.
Rajeev Gupta
Thank you so much for your wishes.
Operator
Thank you. Participants to ask a question you may press star and one. Ladies and gentlemen, anyone who wishes to ask a question may press star and 1. Next question is from the line of Rohit Ori from Progressive Shares. Please go ahead.
Rohit Ohri
Hi team Rajiv Ji Nitinji. Many congrats on this genuine operational turnaround that the company is showing. I hope it is not some cyclical optical recovery. But I think that all the efforts that you are putting in since last two years or so they tend to be showing fruits right now.
Operator
Thank you Rohit.
Rohit Ohri
So I have some questions very quickly. I’ll go through them. The first one being that we see this good growth but in terms of the recovery that is coming to how much percent would you attribute to maybe product mix or maybe the discounting which you must be giving lower to the clients or customers. In addition to that the energy optimization or inventory discipline or is it because of the exit of some low margin businesses that you have? How much percent would you give to each of these entities?
Rajeev Gupta
Okay, so Rohit, first of all thank you very much and I will assure you that this is not a cyclical thing. The Year under consideration has been really very tough for us as well as for entire textile industry. Whatever could have been uncertainties prevailing in the world have prevailed in this year as a whole. So the year was tough. And the turnaround which we are seeing is more because of internal operations than market led. Now coming to, you know, what led to this turnaround or what are the, you know, basis of this recovery.
So largely as you mentioned, this is optimization of product mix. Now we have five businesses and each business we are trying to optimize product mix, essentially reducing our volumes of the low contributing products and enhancing or developing new products which give you comparatively better volumes. And then, you know, optimally utilizing your value added product lines. Wherever attachments or competencies, currencies are built, how to utilize them for better and then try to, you know, focus on your working capital.
If you look at, we saved around 12cr, 12.5cr of interest. So that more has been in terms of optimizing our working capital, both in debtors as well as in stocks. So the team has been trying to work on, on, you know, lower availability of stock and try to work more closely with the customers for the better collection. So everything has contributed in this recovery and there is still a margin which we have to continuously keep on improving.
Rohit Ohri
Rajiv Ji, how much percentage
Operator
Would
Rohit Ohri
Be the value added products or value added volumes if we can? If you have that number handy with you.
Rajeev Gupta
So it will vary from business to business, but still we have a very less, you know, product which are really value added. Now what happened is whatever the value added products we developed in last two, three years, they turn into commodity very soon. You know,
Rishabh Sharma
Value
Rajeev Gupta
Added is only till the time you are not, you know, there with most of the spinners or most of the other products, you have to continuously keep on working. So as of today, we are not mapping this exactly the way you are saying, but I would accept that it is not high in numbers. It is less than maybe one fifth of our sales.
Rohit Ohri
Okay, my next question is, you did mention a bit about the customer edition or geographic additions in your opening remarks. But, but if you can take us through that, how many of these customer addition or deletions have happened maybe in the domestic or the international
Manoj Bansal
Market?
Rohit Ohri
And which are the global customers which have actually started procuring from us? When we talk about UK FTA or maybe New Zealand FTA or the other FTAs that are coming through from Australia.
Rajeev Gupta
So these FTAs are yet to be reality. These are more in the terms of, you know, expectancy and we will have real implementation of this early next year or maybe towards the end of this year. Now what we did was optimizing within our own markets and seeing that which market is comparatively better for the products. So we vetted a couple of countries. For example in Milan we were exporting more to say Korea and Bangladesh. So we added two more markets of Europe, a few customers from Sri Lanka and you know the focus on developing the niche markets where the competition is more in the quality of the product rather than suppliers.
So similarly in denim we try to work on few domestic as well as international brands. Us we added two more customers during this year. And within India our volume to brand have increase over a period of, you know, time nomination business. And this specialized cotton or fibers is another thing which we focus. So I think it is a combination of many things. Not exactly, you know, only addition of markets, the paying markets or the rewarding markets. All the rewarding customers have been something which we try to get.
Rohit Ohri
Okay, that’s encouraging. So you mentioned about this investment made in the knitting business which is around 92 crore. So can you take us through that? What sort of asset terms or maybe the EBITDA margins that you expect from this business going forward, maybe in next one and a half, two years or so.
Rajeev Gupta
Okay, fine. So Manoj Mansalji is with me. He is leading this projectile request. Manoj to you know,
Manoj Bansal
Hi. Currently we have around 600 tons of net capacity which we take to 9 tons. So one of the additions we’re doing is printing so out of 9 to 120 tons would be netting. So this actually adds a new product segment. With this 900 tons of expansion probably our product
Nitin Tulyani
Mix will be, you know, better than what we are supplying today. That is number one.
Manoj Bansal
Currently see ebitda, we are actually, you know, we intend to kind of implement the entire product in the third quarter of this year. So once this is in place we are definitely expecting the bitter improvement by 3 to 4% in the current levels. So that is what our outlook is. And obviously with this improved product mix, as Rajesh mentioned, we are targeting the number of new markets both India and outside. So this will actually strengthen the entire business.
Rohit Ohri
Okay sir, anything would you like to share on the, on the green pet project? Anything on the Capex guidance or maybe that what is the threshold that you’re Targeting for this RPD?
Manoj Bansal
Yeah, see this B2B project is the total capacity 427 which you already, you know, shared with the public domain. So this project, we already started working this project Is coming in Ratnam place called is an np. So we intend to start the construction in the middle of May. But say land is already acquired, everything is there. We already got the consent to establish certificate from the government. So intended to start towards the middle of May. And we want to make it operational next year. The first financial.
First quarter of the financial year. That is overall plan. And we are very, you know, exciting about this part. And machines etc. Have been fine led to this project. So that is about the B2B part. In case you have any specific question of it. I can give answer on that. But as of now this is the plan on ground.
Rohit Ohri
Okay. Okay. Raji, if, if the last question, if you can take us through that. How do you see India positioning Bangladesh, Vietnam or China? And what are the things that you look at maybe in the next three years or five years or so. Do you think that we can probably grow at maybe 15% catal growth for the next maybe four years or so.
Rajeev Gupta
So government of India has worked out a very clear growth plan and Ministry of Textile along with you know all other ministries including Ministry of Commerce and Finance ministry is supporting. We are getting the required tools. And with the FTAs of UK and EU coming in, we will have an excellent opportunity as a country for textile industry to make an impact. Now India has abundance of cotton. Government is also encouraging man made fibers. Now if you talk about Bangladesh and Vietnam, Bangladesh has a huge garmenting capacity and India still is predominantly a spinner which is catching up in downstreams like knitting, weaving and processing.
But in garmenting we still have a major gap. So next three years, if you look at India as a country has to focus more on creating the more garmenting facilities and then try to see that we build on and we come up with a story of Indian government’s target of going to 100 billion export from 39 of grant and 250 billion in domestic content of 147. So I think with all the things falling in place, whatever we missed in last three, four quarters, next two, three years are going to be good period for the Indian text industry if geopolitical situations settle down.
Rohit Ohri
And sir, in terms of RSWM maybe reaching to 6200 or 6500 crore kind of a top line index. Three, four years. Do you think it is possible?
Rajeev Gupta
Yeah, yeah it is possible. The way India is growing, RSWM will not miss out this opportunity. Only thing is, you know, let’s keep our fingers crossed and we need the well wishers like you.
Rohit Ohri
Thank you sir, thank you for answering my question. Thanks a lot.
Rajeev Gupta
Thank you.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the question queue, please restrict yourself to two questions only. Should you have a follow up question, please rejoin the queue. Next question is from the line of Nihar from Millennium Money Finance. Please proceed.
Rishabh Sharma
Hello. Thank you very much for the opportunity, sir. And congratulations on wonderful recovery of the company. So sir, I have two questions. As you stated that US tariffs impacted the company. So would you say that the US order book has fully recovered after the tariff settlement?
Rajeev Gupta
So you know, I will say that it is under recovery. Normally the governmenting is a long cycle. Once you miss a cycle sampling and the product orders are done to maybe the alternate countries, it takes time to come back to the supplier. And wherever we stuck to, those customers offer discounts. So those volumes are coming back. But the product development which suffered during this period of three to six months, that is still impacting. And if everything goes well, I think another 2/4 things should be back to normalcy.
Rishabh Sharma
Okay. And the second question is that what percentage of total exports are from us currently and how much you think it will grow in the future.
Rajeev Gupta
So if you talk about India, India has a good share of exports to us. Particularly the market, the products like home textile. Now if you talk about rswm, our direct sale to us are limited. You know, most of the products that we supply are going to the garmenters or if I talk about yarn to the weavers and knitters will in turn convert into garments and then they get exported. So our exposure to US market is not direct, it is indirect and we are impacted indirectly and also recovering indirectly.
Rishabh Sharma
Okay, sir, got it. Thank you very much and all the very best.
Rajeev Gupta
Thank you. Thank you. Thank you so much.
Operator
Thank you. Next question is from the line of Pramod from Interglobe Finance. Please go ahead.
Unidentified Participant
I wanted to understand the power cost in the standalone I can see 495 crores while in consolidated is 484 crores. The first question is why the consolidated number is lower than the standalone number in terms of power and fuel. And second is the investment of 60 crores in the renewable energy. What is the power cost reduction that we are looking at?
Nitin Tulyani
So coming to your first question with respect to the power cost, like in our consolidated financial, we have another entity called BG Wind Private Limited. So which is primarily for the wind energy. So maybe because of that the number is you are finding the difference.
Unidentified Participant
So
Nitin Tulyani
And coming to the energy
Unidentified Participant
Right
Nitin Tulyani
Coming to the power cost impact which you’re talking about. So I would love,
Manoj Bansal
I would like Manoji to answer this question. See regardless of running power we are anticipating that back to almost 1 rupee per unit in the overall reduction.
Unidentified Participant
And how many units would that be? Can you help me translate that in terms of amount, sir, for the next year
Manoj Bansal
The round we use currently around 1450 lakh unit per day. So the impact would be that much.
Unidentified Participant
40, 50 lakh unit per day.
Rajeev Gupta
So this impact is varying from season to season. You know this is a solar and wind power. And the availability of wind and power generation of solar
Operator
Is something which varies
Rajeev Gupta
From season to season. So on an average we are likely to get you know saving on say between 3 to 5 lakh units per day. And you know that that’s all the saving,
Unidentified Participant
The 40 to 50 lakh units per day, right?
Manoj Bansal
No, no. It’s
Unidentified Participant
A total company.
Manoj Bansal
What we are saying is because of this project the impact will be almost 3 to 400 lakhs unit per day. And the impact is 1 rupee per unit. So you can anticipate probably we can see the 3 lakhs around 3 to 4 lakhs intact per day. So monthly we see it’s almost a growth.
Rishabh Sharma
Okay. Okay. Thank you. Thank you.
Operator
Thank you. Next follow up question is from the line of Ruben from Equity Intelligence. Please go ahead.
Ruben Dias
Hi. Yeah, so it was good to see like you’re doing this capital raise even though you know you’re just increasing your stake by 2.5%. I just want you to understand that a little bit better because earlier in the news it was saying that Bilbaza was looking at investing 700 crores for the green pet plant. But now it seems to be largely done through RSW and we are raising debt for it. So is there a possibility that you know maybe the promoter would be infusing more equity in this project or could you just help me understand that or.
Rajeev Gupta
So we could not get your question. Can you rephrase it in a way that we can?
Ruben Dias
So before it was like was looking at investing 700 crores. That’s what I read in the news.
Rajeev Gupta
Now I got it. You are talking about B2B project.
Ruben Dias
Yeah,
Rajeev Gupta
As a group it was being you know explored by our Bhilwada Energy company. But originally this project was emphasized by RSWM and we were exploring this project at location other than the current location. This is Raklam and then RSWM financials at that point of time and overall fitment within rswm. Was taking time. That is why this definite was there. But now since we already are in fiber manufacturing and we produce 130 metric tons of blister fiber from recycled, you know, PET bottles every day and we consume 60 lakh bottles per day.
So management per se thought that it makes more synergy to have this project in RSWM and in order to ensure that we do not open a big capacity. Right in the beginning, the project NG size originally was around 700 plus CR and then we scale it down almost to 60, 65%. And the current project which our subsidiary in RSWM is taking, it’s around 427cr.
Ruben Dias
So I’m just. What I’m trying to understand is, you know, worry that it’s going to be majority through debt like 300 crores. In the last call that was what was mentioned. So it
Rajeev Gupta
Is 70, 50. Yes.
Ruben Dias
So wouldn’t it be better to have raised funds and not use debt instead?
Nitin Tulyani
So nitin, this slide. So just to answer your query. So the total project cost is 427crore out of which we have raised almost 70% of the amount by way of project financing. We have already got a loan approved for 300 crores and rest of the portion is being introduced by a mix of equity and a loan from holding company. This is how the structure is for the entity.
Ruben Dias
Okay, okay
Nitin Tulyani
To interrupt the open.
Ruben Dias
Okay. Yeah, just one. Sorry to interrupt.
Operator
Reoban. We’ll take that as a last question for the day. Thank you. Ladies and gentlemen. That was the last question for the day. I now hand the conference over to the management for the closing comments.
Nitin Tulyani
Thank you. 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 well positioned to drive innovation, strengthen our market presence and deliver sustainable value. The road ahead holds great promise and I’m confident in our ability to grow and succeed in the years to come. Thanks.
Operator
Thank you sir. On behalf of RSWM limited that concludes this conference. Thank you all for joining us and you may now disconnect your lines. Thank.