Vardhman Textiles (502986) Q4 25/26 earnings summary

Executive summary

• Removal of U.S. tariffs improved India's competitiveness, boosting demand and capacity utilization for exporters and upstream suppliers.

• Vertically integrated textile manufacturer with over 60 years of experience and a global presence in 75+ countries.

• Commercial production started at two new units in March FY26, expanding processed and technical textiles capacity.

• Sustainability initiatives include net zero emissions by 2045 and 60% green power by FY28.

• Audited standalone and consolidated financial results for the year ended March 31, 2026, were approved and reported with an unmodified auditor's opinion.

Financial highlights

• Q4 FY26 revenue from operations at ₹2,441 Cr, down 1% year-over-year; FY26 revenue at ₹9,652 Cr, up 1%.

• Standalone net profit after tax for FY26: ₹740.02 Cr (FY25: ₹879.07 Cr); consolidated net profit after tax for FY26: ₹753.20 Cr (FY25: ₹886.72 Cr).

• EBITDA margin for FY26 at 15.1%, down 127 bps year-over-year.

• Gross margin expanded by 300 basis points quarter-on-quarter, but EBITDA was impacted by a one-time mark-to-market forex loss of INR 57–58 crore.

• Earnings per share (consolidated, FY26): ₹26.18 (FY25: ₹31.05).

Outlook and guidance

• Board approved expansion of garment unit capacity to 4.5 million shirts p.a. by FY27, with ₹125 Cr investment.

• Management expects Q1 and subsequent quarters to be stronger due to improved spreads and lagged price increases in fabric.

• Green capex initiatives underway, targeted for completion by FY27.

• Company continues to monitor regulatory developments, especially regarding new labour codes and their impact on employee benefits.

• Sustained demand, favorable FTAs, and industry consolidation are expected to support profitability, provided raw material prices remain aligned.