Vardhman Textiles Holds Revenue, Margins Ease In Q3
Vardhman Textiles Limited, India’s largest vertically integrated textile manufacturer, reported steady topline performance in the third quarter of FY26 despite a challenging pricing environment and cost pressures.
For Q3 ended December 31, 2025, the company posted Rs 2,452 crore in revenue from operations, up 2% year-on-year, while total income rose to Rs 2,533 crore, also up 2%. Profitability, however, was softer, with EBITDA at Rs 360 crore, down 6% YoY, and margins compressing to 14.2% compared to 15.5% in the same period last year. PAT declined 17% YoY to Rs 170 crore, as higher operating expenses and weaker realisations weighed on the bottom line.
A significant factor impacting profitability this quarter was the implementation of the new Labour Codes notified by the Government of India on November 21, 2025. This led to a one-time non-cash provisioning of Rs 23.58 crore towards gratuity and long-term compensated absences, recognised in accordance with Ind AS-19, contributing to margin compression during the period. On a sequential basis, revenue improved by 1%, while PAT fell 10%, reflecting operational cost pressures.
For the nine-month period April–December 2025, Vardhman reported Rs 7,212 crore in revenue from operations, up 1% YoY, while PAT declined 14% to Rs 561 crore, underscoring a year characterised by stable demand but tighter margins.
Operationally, the product mix remained balanced with yarn contributing 64% and fabric 36% of revenue, while the domestic-export split stood at 56:44, signalling healthy international traction. Yarn sales volumes grew 9% YoY, even as grey and processed fabric volumes moderated.
On the strategic front, Vardhman continued to execute a robust modernisation and capacity expansion programme, with Rs 3,535 crore of capex underway across spinning, woven performance fabrics, processing and green energy initiatives. During Q3, spindle additions crossed ~17,000 units, with processed and performance fabric capacities on track for Q4 FY26 commissioning, and green capex projects progressing toward FY27 completion.
The company remains optimistic on demand recovery in export markets and expects upcoming capacities and sustainability investments to support future growth.
