Rajapalayam Mills Limited (RAJPALAYAM) share price
₹721.00 on NSE as of 2026-10-08. -3.07% on the day. market cap ₹651 Cr. P/E 5.3. 52-week range ₹721.00 to ₹848.85. Textiles.
Rajapalayam Mills Q1 FY27: Revenue Up 38.6% to ₹261 Cr, ₹16.4 Cr of Associate Profit, and 1,40,160 Spindles
At a glance
Rajapalayam Mills spins cotton yarn and weaves fabric at four plants in southern Tamil Nadu. The mill is 90 years old, and the three months to June 2026 were busy. Revenue for those three months reached ₹261.28 crore, up 38.6%. In the same months of 2025 the mill booked revenue of ₹188.57 crore. Operating profit was ₹37.68 crore, which is 64.7% above the year-earlier figure. The operating margin, operating profit as a share of revenue, was 14%. Consolidated profit after tax came to ₹17.55 crore, up 116.1% on the year.
The mill on its own account made a profit after tax of ₹1.12 crore. The other ₹16.44 crore was its share of profit from three associate companies. An associate is a company in which a holder owns a large stake without running it. The three named are The Ramco Cements, Ramco Industries and Ramco Systems. So the cotton business and the cement business filed a joint report card this quarter, and cement carried most of the marks.
Finance costs for the quarter were ₹21.05 crore and depreciation was ₹18.86 crore. Between them they took ₹39.91 crore, slightly more than the whole operating profit. Interest and depreciation are the most punctual guests at every quarterly party here.
Profit before tax at the consolidated operating level was ₹1.83 crore. That is after a loss of ₹1.01 crore on the sale of property, plant and equipment. The quarter also held a rating reaffirmation from CARE, a credit-rating agency, and the annual general meeting. Consolidated borrowings stood at ₹1,146.28 crore at the end of March 2026.
Introduction
Rajapalayam Mills was incorporated in 1936 by P.A.C. Ramasamy Raja, who also founded the Ramco group. CARE, a credit-rating agency, describes the mill as the group's flagship company. The company has been spinning yarn since before most of its machines' great-grandparents were designed.
According to CARE, the mill started life with roughly 6,000 spindles on the floor. A spindle twists fibre into yarn, and a loom weaves that yarn into cloth. By 31 March 2026 it ran 1,40,160 spindles and 328 looms. It also ran 2,960 rotors, another way of spinning yarn, across four sites near Rajapalayam. Fabric and finished-fabric capacity stood at 180 lakh metres at the same date. That is a family business that kept adding rooms to the house for nine decades.
The Ramco group today spans textiles, cement, building materials and software, across eight companies by CARE's count. Its textile arm has an aggregate capacity of 4,13,424 spindles and 7,664 rotors. CARE reports the group's own statement that none of its companies has defaulted in nine decades. CARE also records the chairman's word that promoters or group companies will meet any shortfall. P.R. Venketrama Raja, the current chairman, is the source of that assurance, per CARE.
Company disclosures show 174 looms added in the year to March 2024, taking the total to 328. That year brought ₹334 crore of spending on loom expansion and a fabric processing unit. Total capital spending for the year to March 2024 came to ₹374 crore. The money came from a rights issue, from internal accruals and from term loans. A rights issue sells new shares to the people who already hold them. The share count rose from 73,76,160 to 92,20,200 between March 2021 and March 2023, and it has not moved since.
The ratings file is a busy archive too. CRISIL, another credit-rating agency, moved its outlook on the company to negative in October 2024. CRISIL followed that with a downgrade of the company in April 2025. CARE rated the company in May 2025 and again in December 2025. On 8 July 2026 CARE reaffirmed its ratings at CARE A; Stable and CARE A2+. In the same update CARE raised the long-term bank facilities from ₹662.15 crore to ₹726.75 crore. Consolidated revenue for the year to March 2026 was ₹942.04 crore.
Business model
The short answer is that the company turns cotton into thread, and thread into cloth. The longer answer has four parts: yarn, fabric, power and a set of shareholdings.
The mill spins cotton yarn in counts that run as high as 300s. A higher count means a finer thread, so 300s is very fine yarn indeed. CARE, a credit-rating agency, lists elitwist, gassed, high-twist and melange among the value-added grades. CARE places core spun and mercerized yarn on that same list. Gassed yarn is yarn passed through a flame to singe off stray fibres. It is a business that sets its product on fire on purpose, to the customers' satisfaction. CARE says cotton yarn has historically been about 70–80% of revenue, with value-added yarn at about 40–45%.
Fabric is the newer of the two engines. CARE reports fabric at about 37% of revenue in the year to March 2026. The same share was about 27% in the year to March 2025. Company data shows fabric output rising from 41 lakh metres to 155 lakh metres over five reported years. Laid end to end, that cloth would reach roughly from Rajapalayam to Nashik and a good way back.
The mill runs its own windmills, with 35.15 MW of capacity between them. A group-captive solar arrangement, shared within the group, adds about 15 MW. CARE says captive and group-captive sources meet about 60–70% of the company's power needs. The windmills generated 573 lakh kWh in the year to March 2025. The company has folded power into textiles rather than reporting it separately, saying all of that power is consumed captively.
CARE puts exports at roughly 30–40% of sales, with the top ten customers taking about half. On the input side, cotton is about 50–60% of production cost, per CARE. About 60–70% of the raw material is imported, the same report says. So cotton comes in from abroad, yarn and fabric go out, and the rupee sits in the middle.
The fourth business is the one nobody spins: stakes in three listed group companies. Those are The Ramco Cements, Ramco Industries and Ramco Systems, held as associates. Their profits arrive in the consolidated accounts as a single line. In the three months to June 2026 that line was ₹16.44 crore.
Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Rajapalayam Mills Limited.
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