Transcript of earning call held on April 30, 2026
GHCLTEXTIL · price
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GHCL Textiles reported strong Q4 FY26 with revenue of INR 375 crores (up 31% YoY) and full-year revenue of INR 1,335 crores (up 14% YoY). Full-year EBITDA grew 34% to INR 156 crores. Management highlighted spread improvement from INR 123/kg in Q3 to INR 148/kg in Q4, expecting this to continue in Q1 FY27. The new 25,000 spindle unit has stabilized at 98%+ utilization, and 40 knitting machines have been installed. The company received 50 acres of land at PM MITRA Park in Tamil Nadu for future expansion. Management guided FY27 capex of INR 100-120 crores and reaffirmed the INR 2,000 crores revenue target within 3 years, with fabric contribution targeted at 15% of revenue. Balance sheet remains strong with net debt of only INR 118 crores (0.1x leverage).
The strong Q4 performance and continued spread visibility for Q1 suggest operational momentum is intact. The low leverage and clear capex roadmap for vertical integration (fabric and processing) position the company for margin expansion toward 15-18% EBITDA, though execution on the INR 350 crores remaining investment will be key to meeting the INR 2,000 crores revenue target.