Synopsis: R&B Denims Limited reports 18.65% YoY revenue growth and a 16.27% QoQ surge in net profit in Q3 FY26 results, along with announcing a 1:2 stock split and a 1:2 bonus issue.
This Small-Cap Textile Stock, engaged in manufacturing denim fabrics, yarns, and blends through vertical integration, including spinning, dyeing, weaving, and specialty finishes for global markets, jumped 1.77 percent after the company reported December quarterly results and announced a 1:2 stock split along with a 1:2 bonus issue.
With a market capitalization of Rs. 1,631.67 crores, the share of R&B Denims Limited has reached an intraday high of Rs. 181.35 per equity share, rising nearly 1.77 percent from its previous day’s close price of Rs. 178.20. Since then, the stock has retreated and is currently trading at Rs. 181.15 per equity share.
Q3 FY26 Result Walkthrough
Coming into the quarterly results of R&B Denims Limited, the company’s consolidated revenue from operations increased by 18.65 percent YOY, from Rs. 95.26 crore in Q3 FY25 to Rs. 113.03 crore in Q3 FY26, and grew by 0.36 percent QoQ from Rs. 112.63 crore in Q2 FY26.
In Q3 FY26, R&B Denims Limited’s consolidated net profit decreased by 17.92 percent YOY, reaching Rs. 8.29 crore compared to Rs. 10.10 crore during the same period last year. As compared to Q2 FY26, the net profit has increased by 16.27 percent, from Rs. 7.13 crore. The basic earnings per share decreased by 17.86 percent and stood at Rs. 0.92 as against Rs. 1.12 recorded in the same quarter in the previous year, FY2025.
R&B Denims Limited’s revenue and net profit have grown at a CAGR of 7.39 percent and 46.51 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 15.9 percent and 12.3 percent, respectively. R&B Denims Limited has an earnings per share (EPS) of Rs. 3.47, and its debt-to-equity ratio is 0.45x.
Revenue Segment (Q3 FY26)
R&B Denims Limited reported total revenue from operations of about Rs. 113.03 crore for Q3 FY26. Revenue from the sale of products and services contributed Rs. 111.14 crore, accounting for roughly 98.33 percent of total revenue, while other operating income stood at Rs. 1.89 crore, contributing about 1.67 percent. The figures show that the company’s earnings are overwhelmingly driven by its core denim and textile product operations.
Stock Split
R&B Denims Limited’s Board of Directors has approved the issue of Stock Split shares at a ratio of 1:2, meaning that each equity share with a face value of Rs. 2 will be divided into two equity shares with a share value of Re. 1 each.
For example, if a shareholder owns 1,000 shares valued at Rs. 2 each in R&B Denims Limited, after the 1:2 stock split, their total holding will increase to 2,000 shares with a face value of Re. 1 each. The value of the holding will remain unchanged.
Bonus Issue
R&B Denims Limited’s Board of Directors has also approved the issue of bonus shares at a ratio of 1:2, meaning that shareholders will receive one new fully paid-up equity share of Re. 1 each for every two existing fully paid-up equity shares they hold.
For example, if a shareholder owns 2,000 shares of R&B Denims Limited, they will receive 1,000 bonus shares, bringing their total holding to 3,000 shares after the 1:2 bonus issue.
Company Overview
R&B Denims Limited was incorporated in 2010 and is a vertically integrated textile manufacturer based in Surat, India, specializing in denim fabric production. The company handles the full process from sourcing raw cotton to advanced dyeing, finishing, and weaving, creating a wide range of denim products, including open-end and ring-spun yarns, slub yarns, cotton-polyester blends, stretch fabrics, and specialty finishes like over-dyeing, coating, and resin application.
The company produces high-width denim up to 76 inches, offers large volumes in consistent colors or small lots in varied shades, and emphasizes sustainable practices with eco-friendly processes and renewable energy.
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