Raj Rayon Industries Ltd(RAJRILTD)

NSE: RAJRILTDBSE: 530699

₹ 20.93-1.74%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 1,164 crWebsite: www.rajrayon.comUpdated: 24 Oct 2026

About

Raj Rayon Industries makes polyester filament yarn, covering polymerisation, POY and DTY, and is moving into specialty yarns and fabric. Its parent, SVG Fashions, provides captive downstream demand. The company reported revenue of Rs 1179.72 cr in FY26. Polymerisation capacity reached 400 TPD in Q1 FY27 after a debottlenecking.^[1][2][3]

Business and products

The company reported a single segment, Textiles, with revenue of Rs 849.38 cr attributed to India in FY25.^[4]
The company supplies various deniers of polyester filament yarn across India and globally.^[5]
Its value-added range includes full dull cotton-like yarns and dope dyed yarns, which management said were well received in the market in Q1 FY27.^[2]

Manufacturing capacity

Polymerisation capacity rose to 400 TPD from 350 TPD after a 46-day debottlenecking shutdown in Q1 FY27.^[2]
As of FY25, capacity stood at polymerisation 400 TPD, POY 350 TPD and DTY 150 TPD, up from 300/125/60 TPD when production started in Jan 2023.^[3]
POY capacity was planned to rise to 1,26,000 TPA in FY26 from 82,000 TPA in FY25, and DTY to 54,000 TPA from 46,800 TPA.^[3]

Key operating numbers

Production volume was 20.62k MT in Q1 FY27, down 45% YoY, because of the plant shutdown.^[2]
Sales volume was 17.43k MT in Q1 FY27, down 38% YoY.^[2]
Capacity utilisation was 46% in Q1 FY27, down from 90% a year earlier.^[2]
Gross margin was 25.4% in Q1 FY27 vs 21.5% a year earlier, helped by pricing.^[2]
Working capital days turned negative in FY26, as raw materials are bought on supplier credit backed by non-fund-based facilities.^[2]

Customers and markets

The company had 3,500+ customers and sold to 15+ export markets as of Q1 FY27.^[2]
Parent SVG Fashions, whose customers include Skechers, Reliance Retail, Adidas and Puma, provides captive downstream demand.^[3][2]
Shareholders were asked to approve related-party transactions with SVG Fashions of up to Rs 900 crore (FY25 annual report).^[4]
Management plans to revive the export business from FY27 onwards through specialty products.^[2]

Expansion plans

The Board approved Phase II brownfield capex of up to Rs 650 cr for polymerisation and fabric capacity, taking total capacity to 700++ TPD, with full commissioning expected in CY2028.^[2]
Management cited peak revenue potential of Rs 2,700-3,000 cr after Phase II, with FY29 as the first full year and about 80% of revenue from value-added, specialty and sustainable products.^[2]
Dope dyed yarn capacity is to double in Q3 FY27, and fabric production of ~10 TPD is to start in Q3 FY27.^[2]
A biomass energy project is to be commissioned in Dec 2026.^[2]

Recent developments

A 46-day shutdown in Q1 FY27 for debottlenecking cut revenue 21% YoY to Rs 204.5 cr.^[2]
Management set an FY27 debt reduction target of ~Rs 60 cr, to come from surplus cash and targeted prepayment.^[2]
The FY25 annual report said a rights issue was planned and authorised capital was raised to Rs 110 crore.^[4]
The company has not met the minimum public shareholding requirement since June 2023, and the promoter's demat account was frozen (FY25 annual report).^[4]

Market Cap

₹1,164 Cr

High / Low

₹26 / 19

Stock P/E

33.2

Price / Book

7.5

Book Value

₹3

EPS

₹0.6

No. of Shares

55.61 Cr

ROCE

13.6%

ROE

24.4%

OPM

4.2%

Debt / Equity

1.42

Sales

₹1,180 Cr

Net Profit

₹34 Cr

Promoter holding

94.1%

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