Vardhman Textiles (502986) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue from operations was ₹2,505.31 crore, up 2% year-over-year, with stable business operations despite cost volatility and global trade uncertainties.

• PAT for Q3 FY26 was ₹170 crore, down 17% year-over-year, with EBITDA margin at 14.2%-15% amid margin compression from high cotton costs.

• Disciplined execution maintained yarn utilization at 95% and fabric at 89-90%, with strategic investments in performance fabrics and Budni expansion.

• Green power initiatives are underway, targeting 40-50% of total demand by FY26-FY27 and significant sustainability milestones by 2030 and 2045.

• The group operates primarily in textiles, with a secondary segment in acrylic fibre.

Financial highlights

• Total income for Q3 FY26 was ₹2,533 crore, up 2% year-over-year; EBITDA for Q3 FY26 was ₹360 crore, down 6% year-over-year.

• PAT margin for Q3 FY26 was 6.6%-6.9%, down from 8.2% in Q3 FY25.

• Historical FY25 total income was ₹9,955 crore, PAT at ₹1,292 crore (13% margin), EBITDA at ₹1,625 crore (16% margin).

• Standalone EPS for Q3 FY26 was ₹7.58, down from ₹9.88 in Q3 FY25; consolidated EPS was ₹5.85.

Outlook and guidance

• Ongoing capex of ₹3,535 crore includes yarn and fabric expansions, modernization, and green initiatives, with major projects to complete by Q4 FY26 and FY27.

• Near-term visibility remains limited due to persistent cost pressures and trade disruptions; company is monitoring US tariff developments.

• Performance wear capacity utilization targeted at 60% for the next financial year.

• Focus remains on portfolio premiumization, operational efficiency, and customer-centricity.