Please find enclosed herewith Financial Results of the Company for the Quarter/ Financial Year ended 31.03.2026.
VTL · price
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Vardhman Textiles reported standalone revenue from operations of Rs 9,652 crore for FY26, essentially flat compared to Rs 9,587 crore in FY25. However, profit after tax declined significantly to Rs 740 crore from Rs 879 crore in FY25, representing a ~15.8% drop. The company attributed part of the PAT decline to new labour codes (Ind AS 19) resulting in a one-time past service cost of Rs 32.48 crore (Rs 23.58 crore in Q3 + Rs 8.90 crore in Q4) recognized under employee benefit expenses. Tax expense also reduced by Rs 16.98 crore due to reversal from settlement of tax litigations. The auditors (Deloitte Haskins & Sells LLP) issued an unmodified opinion. The Board recommended a dividend of Rs 5 per share. Capital expenditure was significant with new technical textile unit in Baddi and additional processing line in Budhni (totalling ~Rs 570 crore) capitalized during Q4, reaching commercial production in March 2026.
The flat revenue growth combined with a sharp PAT decline and increased borrowings (non-current liabilities up from Rs 749 crore to Rs 1,231 crore) signals margin compression and higher leverage, which could weigh on the stock near term despite the dividend announcement.