Vardhman Textiles Sees Modest Q1 Growth, Profit Slips 11%
Vardhman Textiles Limited, one of India’s largest vertically integrated textile manufacturers, reported a steady revenue growth of 3.2% year-on-year in the first quarter of FY26, with revenues from operations rising to Rs 2,342 crore from Rs 2,270 crore in the same quarter last year.
However, the company experienced pressure on profitability, with net profit falling 11.1% to Rs 202 crore from Rs 227 crore in Q1 FY25. Sequentially, both revenue and profit were down, with revenue dipping 4.7% and profit after tax declining 11.9% compared to Q4 FY25. EBITDA stood at Rs 397 crore, a 3% decrease year-on-year, while EBITDA margins narrowed to 16.4% from 17.5%.
Segment-wise, yarn production rose 2.6% to 68,639 metric tonnes year-on-year, although sales volumes dropped 4.9% quarter-on-quarter. Processed fabric and grey fabric segments both recorded slight declines in production compared to the previous year. The export market contributed 46% of total revenue, with domestic sales accounting for the remaining 54%.
Despite near-term margin headwinds, the company is actively pursuing expansion, with 15,600 additional spindles to be installed by H1 FY26 and 31 million meters of processed fabric capacity expected by H2 FY26. Investments are also underway in modernization, automation, and green capex, with a total planned outlay of Rs 3,535 crore.
In line with its long-term sustainability goals, Vardhman confirmed its commitments to achieving net zero emissions by 2045, reducing freshwater consumption by 30% by 2030, and adopting 100% sustainable packaging by FY30.
Currently, 29% of the company’s raw material inputs are sourced sustainably. While short-term profitability remains under pressure, Vardhman maintains a strong balance sheet and continues to invest in capacity, efficiency, and environmental responsibility to drive future growth.
