VTLNSEVardhman Textiles Limited· Textiles - CottonMediumNeutral
Announced Fri, 8 May · 13:04 IST

Vardhman Textiles Limited has informed the Exchange about Investor Presentation

Investor Communications View source PDF

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₹595.00
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₹571.85
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AI summary

Vardhman Textiles reported Q4 FY26 standalone revenue of Rs 2,441 Cr (flat YoY) with EBITDA of Rs 354 Cr (down 13%) and PAT of Rs 179 Cr (down 22%). Full year FY26 revenue stood at Rs 9,652 Cr (up 1%) with PAT of Rs 740 Cr (down 16%) as EBITDA margins contracted to 15.1% from 16.3% last year. Total announced capex stands at Rs 3,660 Cr, with yarn expansion of ~17,000 spindles completed and new processed fabric (31 MM meters) and technical textiles (18 MM meters) units commencing commercial production in March FY26. Garment capacity is being expanded from 2.2 million to 4.5 million shirts per year by end FY27 at an investment of ~Rs 125 Cr. Net debt increased to Rs 422 Cr from a net cash position last year due to higher borrowings of Rs 1,852 Cr. No formal forward-looking margin guidance or multi-year targets were provided in the presentation.

Likely market impact

Vardhman reported a weak Q4 and FY26 with declining profitability and margin contraction amid challenging textile market conditions. The sharp PAT decline of 16% and rising debt levels may concern investors despite the company's large ongoing capex program. The lack of margin guidance leaves uncertainty about the path to recovery.