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Unlisted shares are illiquid and carry higher risk than listed securities. Prices are indicative, not live. Read the risk disclosure.

Credit Rating (CRISIL)
Crisil BBB/Negative/Crisil A3+
Rates the company's debt-servicing ability — not the quality or value of its shares.
Rated: 12 Feb 2026
View Full Report52-Week Range
Valuation
Financials (FY25)
Source: CRISILInvestment Thesis
The Ramaraju Surgical Cotton Mills Limited is a Ramco Group company with an 85+ year history in surgical cotton and medical textile manufacturing from Rajapalayam, Tamil Nadu. The Ramco Group promoter backing provides credibility and governance assurance. However, the surgical cotton segment is commoditized with thin margins, and the company's financial performance is not publicly disclosed. Unlisted market investors are typically attracted by the Ramco Group association and the stable healthcare consumables demand.
Pros
Cons
Business Segments
Surgical Cotton Manufacturing
Production of absorbent surgical cotton wool and related medical textile products for hospital and healthcare use
Medical Textiles
Possible manufacture of other medical textile products such as gauze, bandages, or cotton-based healthcare consumables
Revenue Model
Revenue is generated from sale of surgical cotton and medical textile products to hospitals, pharmaceutical distributors, retail pharmacies, and government healthcare institutions. Pricing is competitive and linked to raw cotton commodity prices.
Detailed Analysis
Growth Plans
India's healthcare sector expansion under Ayushman Bharat and state hospital schemes drives demand for surgical consumables
Ramco Group's management expertise and distribution relationships could help scale operations
Export opportunities in African and Southeast Asian markets for Indian medical textile manufacturers
Industry Tailwinds
India's healthcare sector expansion under Ayushman Bharat and state hospital schemes drives demand for surgical consumables
Recent Developments
The company maintained operating revenue in the Rs 100-500 crore range for FY2022, supported by continued demand for surgical consumables and textile products.
2022Comparable Companies
RAMCOCEM · ~18,000 Cr
Group Structure (4 entities)
Business and financial linkages
Business and financial linkages
Frequently Asked Questions
About Ramaraju Surgical Cotton Mills
The Ramaraju Surgical Cotton Mills Limited is a diversified manufacturing company incorporated on December 20, 1939 in Rajapalayam, Tamil Nadu, as part of the prestigious Ramco Group. With over 85 years of industrial history, it is one of India's oldest producers of surgical cotton and medical dressings, combining healthcare manufacturing with textiles and renewable energy generation. The company operates across three distinct business segments: surgical dressings manufacturing, textiles (yarn, greige fabrics, home textiles and bed linen), and captive power generation from wind turbines and solar panels. The dual focus on healthcare supplies and textiles makes Ramaraju Surgical Cotton Mills a unique hybrid manufacturer in India's industrial landscape. The Ramco Group, to which this company belongs, is one of South India's most prominent industrial conglomerates with an annual revenue of approximately USD 1 billion (around Rs 8,000 crore). The group has significant operations in cement, fibres, textiles, and industrial products. Ramaraju Surgical Cotton Mills benefits from the group's operational expertise, financial resources, and brand credibility. The company is registered as a Public Limited Company (listed CIN prefix indicates it may have been listed historically) with an authorised share capital of Rs 10 crore and paid-up capital of Rs 5.8 crore. The operating revenue range for the financial year ending March 31, 2022 was Rs 100-500 crore. Key directors include Pusapadi Ramasubramania Raja Venketrama Raja and Nambur Krishnama Raja Shrikantan Raja, reflecting the Ramco family's continued involvement. The surgical cotton division produces absorbent cotton, gauze, bandages, cotton crepe bandages, and other wound care products used across hospitals, clinics, and pharmacies. As India's healthcare sector expands — driven by government health schemes, increasing hospitalisation rates, and growing awareness of hygiene — demand for surgical consumables is structurally growing. The textiles division produces yarns and home textiles for domestic and export markets.
Key Milestones
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Unlisted shares are illiquid and carry higher risk. Pricing is indicative, not live, and these are private off-market transactions with no exchange settlement guarantee. Read the full risk disclosure.
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Ramco Group's management expertise and distribution relationships could help scale operations
Export opportunities in African and Southeast Asian markets for Indian medical textile manufacturers
Industry Headwinds
Raw cotton price volatility directly impacts production costs
Competition from cheaper imports and unorganized domestic manufacturers
Limited scale as a standalone business within a large conglomerate group
Key Strengths
Established market position and extensive experience of the promoters RSCM was established in 1939 as a part of the Ramco group.
The company, along with five other group entities, is engaged in the textile business, with combined capacity of 424,256 spindles and 7,352 rotors.
The company specialises in manufacturing yarn of finer counts, ranging from 40s to 340s (single/double yarn), besides other value-added products such as slub and gassed yarn.
It has established its market position backed by longstanding relationship with customers.
RSCM has also integrated its operations forward, with 156 air jet looms for the weaving division during fiscal 2020.
Key Weaknesses
Sub-par financial risk profile The financial risk profile is constrained by sizeable debt and continued net losses due to weak operating performance, which have eroded the company’s networth.
The net cash accrual to total debt ratio and interest coverage are estimated at 0.01 time and 0.75 time, respectively, during fiscal 2025.
On September 30, 2025, debt was around Rs 423 crore, including promoter loans and ICDs.
The debt is expected to increase to around Rs 600 crore by the end of March 2026, and shall moderate over the medium term.
While the company has no major capex plans, steady improvement in cash accrual and timely refinancing of debt or sale of investments to meet sizeable debt obligations remain critical.
Upward Factors
8% Sustained improvement in debt protection metrics, along with prudent working capital management and sizeable reduction in debt, including through material equity infusion Improvement in the credit profile of the Ramco group
Downward Factors
than-expected cash accrual due to continuing weak operating margin (below 3-4%) Increase in debt levels to fund losses or higher working capital intensity, weakening the financial risk profile Increase in encumbrance levels on investments in listed group entities, exceeding 70-75% of current holding, by way of pledge or non-disposal undertaking Moderation in credit profile of the Ramco Group or change in stance of support
No recent financial data beyond FY2022 publicly available
Source: AlphaHub Research
Hybrid business model (surgical + textiles) may dilute focus
Source: AlphaHub Research
Debt-to-equity ratio of 10.50x (FY25) indicates elevated leverage — increases financial risk in downturns
Source: Financial data
Interest coverage ratio of 0.75x (FY25) — EBIT does not fully cover interest expenses; risk of debt default
Source: Financial data
CRISIL rating outlook is "Negative" — signals potential downgrade risk if conditions deteriorate
Source: CRISIL
Surgical cotton manufacturing is dependent on raw cotton prices, which are volatile and subject to agricultural output fluctuations and export policy changes.
The surgical cotton market is highly competitive with numerous unorganized players and low barriers to entry, limiting pricing power.
Medical textiles are subject to quality standards and regulatory oversight (BIS standards for surgical cotton); non-compliance can impact sales to institutional buyers.
PE: ~25xx
RAMCOSYS · ~1,500 Cr
TRIDENT · ~8,000 Cr
PE: ~20xx
Business and financial linkages
Business and financial linkages
Incorporated in 1939 in Rajapalayam, Tamil Nadu (CIN: L17111TN1939PLC002302) as part of the Ramco Group
Part of the Ramco Group conglomerate led by the Rajha family of Rajapalayam — one of South India's prominent business houses
Operates alongside Ramco Group's major listed entities including The Ramco Cements Ltd. and Ramco Systems Ltd.
Ramco Group (P.R. Ramasubrahmaneya Rajha family / Ramco Group promoters)