Vardhman Textiles (502986) Q1 25/26 earnings summary

Executive summary

• Operational performance in Q1 FY26 was stable or slightly better than the previous quarter, excluding extraordinary items, despite ongoing challenges in the spinning industry and global trade disruptions.

• India's largest vertically integrated textile manufacturer with a global footprint in 75+ countries and over 60 years of experience.

• Focus on sustainability, with significant ESG goals including net zero emissions by 2045 and 40% green power generation by FY26.

• Recognized with multiple national awards for quality, sustainability, and operational excellence during the quarter.

• The group operates primarily in textiles and acrylic fibre, with textiles being the dominant segment.

Financial highlights

• Q1 FY26 consolidated revenue from operations was ₹2,385.66 crore, up from ₹2,308.59 crore year-over-year but down sequentially from ₹2,508.57 crore.

• EBITDA for Q1 FY26 at ₹397 crore, down 3% year-over-year; EBITDA margin at 16.4%, down 108 bps year-over-year.

• PAT for Q1 FY26 at ₹202 crore, down 11.1% year-over-year; PAT margin at 8.3%, down 137 bps year-over-year.

• Standalone net profit after tax was ₹201.62 crore, compared to ₹228.97 crore in the previous quarter and ₹226.90 crore in Q1 FY25.

• EPS for Q1 FY26 at ₹7.0 (standalone: ₹6.97), compared to ₹7.8 in Q1 FY25.

Outlook and guidance

• Margins are expected to come under pressure in coming quarters if cotton prices remain high and yarn prices do not improve.

• Ongoing capex of ₹3,535 crore, with major yarn and fabric capacity expansions expected to complete by H2 FY26.

• Full benefit from green power investments and biomass-based boilers is expected over the next year, with incremental improvements each quarter.

• Management remains cautiously optimistic, focusing on modernization, product mix, and operational efficiency.

• Green capex initiatives underway, targeting completion by FY27.