Vardhman Textiles Reports Steady Topline In Q3 With Reduced Margins
Vardhman Textiles Ltd, 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 bottomline.
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, signaling 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.
