Synopsis: Raj Rayon Industries jumped sharply after reporting a strong Q2 FY26: revenue jumped 51% YoY to Rs 319 crore, and expenses increased 44% to Rs 312 crore. The company made a profit of Rs 8 crore against a loss of Rs 4.3 crore last year; thus, a drastic turnaround was achieved along with 32% QoQ profit growth.
The shares of this leading manufacturer and trader of polyester chips, polyester yarn, and processed yarn are in focus after reporting a stellar turnaround in Q2 FY26. In this article, we will dive more into the details.
With a market capitalization of Rs 1,406 crore, the shares of Raj Rayon Industries Ltd reached a day’s high of Rs 25.22 per share (upper circuit), up 2 percent from its previous day’s closing price of Rs 24.73 per share. Over the past five years, the stock has delivered a multibagger return of 16,733 percent, outperforming NIFTY 50’s return of 103 percent.
Q2 Highlights
Raj Rayon Industries reported a core revenue of Rs 319 crore in Q2 FY26, a growth of 51 percent as compared to Rs 212 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 23 percent from Rs 260 crore.
On the expenses front, it reported total expenses of Rs 312 crore in Q2 FY26, a growth of 44 percent as compared to Rs 217 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 24 percent from Rs 253 crore.
Regarding its profitability, it reported a net profit of Rs 8 crore in Q2 FY26, a sharp turnaround as compared to a loss of Rs 4.3 crore in Q2 FY25. However, on a quarter-on-quarter basis, it recorded a growth of 32 percent from Rs 6 crore.
Raj Rayon Industries Ltd (RRIL) is a polyester yarn manufacturer based in Mumbai. The company produces PTY, POY, and FDY. In 1993, it started with one machine, and now it has grown to be a large player with modern plants in Silvassa and huge production capacity. The company is ISO-certified, publicly traded on NSE & BSE, and recognised as a Star Export House.
RRIL manufactures a wide range of speciality yarns like bright, dope-dyed, cationic and fire-retardant yarns. With strong R&D and the capability to change product lines rapidly, it caters to both the domestic and international markets. The company exports to different countries in Asia, Europe, Africa and Latin America.
Written by Satyajeet Mukherjee
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