Reliance Chemotex Industries Ltd (RELCHEMQ)

Textiles · Textiles · NSE · Updated 16 September 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹120.2 ↓ 26.93% (1Y)

🎯 Key Takeaways

Reliance Chemotex Industries Ltd is a mid-sized textile manufacturer operating in technical yarns with a focus on export-oriented production. The company exhibits characteristics of a mature, cash-generating business with stable but declining profitability, as reflected in its low ROE (4.
Revenue grew 12.1% QoQ to ₹99 in Q1FY27.
⚠️ High debt-to-equity ratio of 1.90 poses financial risk amid low profitability and limited cash flow generation.

Market Cap

₹91

P/E Ratio

16.3

P/B Ratio

0.66

ROE

4.1%

ROCE

7.6%

Debt/Equity

1.90

Div Yield

0.42%

Promoter

67.7%

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📖 The Story

Reliance Chemotex Industries Ltd is a mid-sized textile manufacturer operating in technical yarns with a focus on export-oriented production. The company exhibits characteristics of a mature, cash-generating business with stable but declining profitability, as reflected in its low ROE (4.1%) and ROCE (7.6%). Despite consistent promoter holding, its financial trajectory shows margin compression and flat growth, placing it in a stagnant or turnaround phase rather than a clear growth cycle.

📰 What's Happening

The company has recently reappointed Sanjiv Shroff as Managing Director for three years, effective September 1, 2026, ensuring leadership continuity. It has scheduled its 48th AGM for September 24, 2026, with a record date of September 18, 2026, for dividend payment and e-voting. The board approved unaudited Q1 FY27 results showing net profit of ₹136.65 lakhs, up from ₹106.33 lakhs YoY, indicating modest profit growth. However, no forward-looking guidance was provided beyond procedural disclosures. The company continues to invest in capacity expansion to strengthen its position in high-growth technical textiles markets, though specific capital allocation details remain unspecified.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Revenue	100	82	88	99
Operating Profit	7	7	5	7
OPM %	6.6%	8.5%	6.0%	7.3%
Net Profit	2	1	2	1
EPS	₹2.19	₹1.06	₹2.31	₹1.81

Quarterly revenue has remained relatively stable, ranging between ₹82 crore and ₹100 crore over the last four quarters, with a slight upward trend in total income. Operating margins have declined from 8.5% in December 2025 to 6.0% in March 2026, reflecting margin pressure despite stable top-line performance. Net profit rose to ₹136.65 lakhs in Q1 FY27 from ₹106.33 lakhs in the same quarter last year, suggesting some improvement in profitability, but the company remains small-scale with limited earnings visibility. EPS has fluctuated between ₹1.06 and ₹2.31, showing inconsistency in shareholder returns.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance on revenue, margins, or growth expectations beyond confirming the AGM date, record date for dividend, and e-voting schedule. The reappointment of the Managing Director signals stability in leadership but does not indicate a strategic shift. No commentary on future profitability, market expansion, or capital allocation beyond ongoing capacity investment was disclosed in the filings.

Extracted from official company announcements. Not StockFin.ai's opinion.

🏦 Balance Sheet (₹ Cr)

Item	Mar 2025	Mar 2025	Mar 2026	Mar 2026
Equity Capital	8	8	8	8
Reserves	128	130	132	135
Borrowings	267	261	252	268
Total Liabilities	475	474	479	512
Fixed Assets	314	311	305	298
Investments	0	2	0	0
Total Assets	475	474	479	512

The balance sheet shows a stable capital structure with equity remaining constant at ₹8 crore and reserves slightly increasing to ₹135 crore as of March 2026. Borrowings have marginally risen to ₹268 crore from ₹252 crore, indicating modest leverage growth. Total assets have grown from ₹474 crore to ₹512 crore over two years, suggesting asset base expansion, likely tied to capacity investment. The company maintains a high debt-to-equity ratio of 1.90, which raises concerns about financial risk, especially amid stagnant profitability and limited cash flow generation.

💰 Cash Flow Statement (₹ Cr)

Item	Mar 2025
Operating	+11
Investing	+33
Financing	-43
Net Cash Flow	+0

👥 Shareholding Pattern

Category	Q2FY26	Q3FY26	Q4FY26	Q1FY27
Promoters	67.7%	67.7%	67.7%	67.7%
FII	0.0%	0.0%	0.0%	0.0%
DII	0.0%	0.0%	0.0%	0.0%
Public	23.8%	23.8%	24.2%	24.1%
# Shareholders	13,133	13,133	13,166	13,156

Promoter holding remains steady at 67.68% across all recent quarters, indicating no dilution or stake sale. Institutional ownership (FII and DII) remains negligible at 0%, while public shareholders account for approximately 24% of equity. The number of public shareholders has slightly increased, suggesting retail interest may be growing. There are no signs of institutional accumulation or significant shareholder activism, reflecting limited investor attention or confidence in near-term catalysts.

⚖️ Peer Comparison — Textiles

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
GRASIM	2.17 L Cr	38.0	9.6%	10.8%	2.16
WELSPUNLIV	19,108	66.3	8.0%	5.8%	0.37
VTL	15,847	18.4	10.7%	8.7%	0.13
ARVIND	14,947	34.8	14.3%	10.6%	0.36
TRIDENT	11,782	29.6	10.1%	8.3%	0.37
SWANCORP	9,176	44.1	4.2%	2.9%	0.29
ICIL	8,455	56.0	9.8%	6.4%	0.46
GARFIBRES	7,672	37.0	22.9%	16.9%	0.05
KUSUMGAR	5,802	—	—	—	0.45
JINDWORLD	4,948	58.8	10.2%	9.8%	0.65

🔗 Peer Stock Analyses

GRASIM WELSPUNLIV VTL ARVIND TRIDENT

⚠️ Risk Factors

1. High debt-to-equity ratio of 1.90 poses financial risk amid low profitability and limited cash flow generation. 2. Persistent margin compression, with operating margins declining to 6.0% in Q1 FY27 from 8.5% in December 2025, signals pricing pressure or rising input costs. 3. Lack of forward guidance from management reduces visibility into growth prospects. 4. Reliance on export markets (34.54% export revenue) exposes the company to global demand and currency volatility, which is not being actively mitigated or hedged as per disclosures.

📋 Recent Filings

🧠 Analyst's Read

Reliance Chemotex operates as a stable but stagnant textile manufacturer with modest profitability and high leverage. While leadership continuity and shareholder-friendly dividend practices are positive, the absence of growth strategy clarity and ongoing margin pressure warrant caution. Investors should monitor management’s next capital allocation decisions and any shift in strategic direction beyond incremental capacity investments.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-16.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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