Vardhman Textiles Limited has informed the Exchange about Transcript.
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Vardhman Textiles held its Q4 FY'26 earnings call on May 8, 2026. Management highlighted multiple positive developments: US tariffs removal has restored Indian textile exporters to 90-100% capacity utilization. Cotton prices surged globally (New York futures from $0.62 to $0.82-0.83) and Indian cotton from INR52,000 to INR67,000 per candy. Yarn demand improved sharply with China buying 30 million kg monthly (vs normal 7-8 million kg), pushing prices from $2.65 to $3.35 for 30s combed yarn. Spinning margins improved 40-50% with spreads rising from ~$0.65 to $0.90-0.95 as Indian cotton aligned with international prices. The industry saw 11-12 million spindles permanently shut down, leaving working capacity at 41-42 million vs expected 59-60 million. Management guided Q1 FY'27 should show significant improvement as fabric price increases (with 2-3 month lag) feed through. One-time INR57-58 crore forex loss was taken due to March 31st rupee movement. Capex on spinning modernization (90% complete) and green power projects completing in 1-2 months.
The company and industry are in a recovery phase with improved margins driven by better demand and aligned cotton costs. Spinning spreads have normalized and fabric price increases are in progress, suggesting better profitability ahead. The capacity reduction creates a more favorable supply-demand balance for organized players like Vardhman.