SWARAJ - Swaraj Suiting

📊 NSE: SWARAJ 🏢 Textiles - Spinning - Synthetic / Blended 📅 Last Updated: 12/14/2025 14:01

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 30.34% YoY, reaching INR 416.57 Cr in FY25 compared to INR 319.59 Cr in FY24. Standalone revenue followed an identical growth trajectory from INR 319.59 Cr to INR 416.57 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the company is headquartered and operates primarily out of the Bhilwara, Rajasthan textile hub.

Profitability Margins

Net Profit Margin improved significantly to 8.0% in FY25 from 5.7% in FY24. Gross margins are influenced by material costs which stood at 52.7% of revenue in FY25.

EBITDA Margin

EBITDA margin expanded to 17.6% in FY25 (INR 73.22 Cr) from 12.4% in FY24 (INR 39.71 Cr), representing a 520 bps improvement in core operational profitability.

Capital Expenditure

The company made significant investments in tangible assets totaling INR 140.24 Cr in FY25, a 94% increase over the INR 72.27 Cr invested in FY24, primarily for capacity expansion.

Credit Rating & Borrowing

Finance costs increased 44% YoY to INR 19.06 Cr in FY25. Total borrowings include Long-term loans of INR 188.75 Cr and Short-term borrowings of INR 79.09 Cr.

⚙️ Operational Drivers

Raw Materials

Polyester Viscose yarn and Denim-grade cotton yarn; Cost of materials consumed represents 52.7% of total revenue (INR 219.40 Cr).

Import Sources

Not specifically disclosed, though operations are centered in Rajasthan, India.

Capacity Expansion

Current infrastructure includes 48 Airjet Weaving Looms imported from Japan and Sulzer weaving looms. Capital work-in-progress of INR 12.77 Cr as of March 2025 suggests ongoing facility enhancements.

Raw Material Costs

Raw material costs were INR 219.40 Cr in FY25, up 14.1% from INR 192.25 Cr in FY24. The company utilizes a mix of direct consumption and purchase of stock-in-trade (INR 86.21 Cr).

Manufacturing Efficiency

EBITDA growth of 84.4% YoY (outpacing revenue growth of 30.3%) indicates substantial improvements in manufacturing efficiency and operating leverage.

📈 Strategic Growth

Expected Growth Rate

30%

Growth Strategy

Growth is driven by the scaling of the 'Swaraj Denim' brand, vertical integration from trading to high-tech weaving, and capacity expansion supported by the INR 140.24 Cr capex in FY25. The company is also leveraging its associate, Modway Suiting, for broader market reach.

Products & Services

Polyester Viscose Fabric, Denim Fabric, and branded denim apparel.

Brand Portfolio

Swaraj Denim.

New Products/Services

Expansion of the 'Swaraj Denim' product line and increased output from the newly installed Airjet looms.

Market Expansion

The company transitioned from a private entity to a public listed company on the NSE Emerge platform in 2022 to fund regional expansion.

Strategic Alliances

Associate relationship with Modway Suiting Private Limited (formerly Cyan Textile Private Limited).

🌍 External Factors

Industry Trends

The Indian textile industry is shifting toward organized branded denim and high-speed weaving technology. Swaraj is positioned as a growth-stage player with a 48% revenue CAGR from FY22 to FY25.

Competitive Landscape

Operates in a highly fragmented textile market in Rajasthan, competing with both unorganized players and established fabric brands.

Competitive Moat

Moat is built on cost leadership through high-efficiency Japanese Airjet looms and a strong regional presence in the Bhilwara textile cluster. Sustainability is driven by the transition from a pure commodity trader to a branded fabric manufacturer.

Macro Economic Sensitivity

Highly sensitive to consumer spending in the apparel sector and textile export policies.

Consumer Behavior

Increasing demand for branded denim and high-quality synthetic blends in the domestic Indian market.

Geopolitical Risks

Potential impact on the import of specialized machinery (like Japanese Airjet looms) and global cotton/polyester price fluctuations.

⚖️ Regulatory & Governance

Industry Regulations

Subject to textile manufacturing standards and pollution control norms in Rajasthan; compliant with Companies Act 2013 and SEBI LODR regulations.

Taxation Policy Impact

Effective tax rate was approximately 25.3% in FY25 (INR 11.28 Cr tax on INR 44.60 Cr PBT).

Legal Contingencies

The company has provided a corporate guarantee of INR 6.12 Cr in favor of Canara Bank for its associate, Modway Suiting Private Limited. Pending litigations are noted as having an impact on the consolidated financial position.