Vardhman Textiles Q2 FY27 results: net profit up 91.1% to ₹358.76 crore, revenue up 15.5%

How did Vardhman Textiles perform in Q2 FY27?

Vardhman Textiles reported consolidated revenue of ₹2,866 crore for Q2 FY27, up 15.5% from ₹2,480 crore in Q2 FY26 and 6.0% from ₹2,703 crore in Q1 FY27. EBITDA increased to ₹561.14 crore from ₹334.44 crore a year earlier and ₹473.60 crore in the previous quarter. The EBITDA margin was 19.6%, compared with 13.5% in Q2 FY26 and 17.5% in Q1 FY27.

Consolidated profit before tax was ₹460.18 crore, up from ₹236.52 crore in Q2 FY26 and ₹402.24 crore in Q1 FY27. Net profit was ₹358.76 crore, compared with ₹187.76 crore and ₹314.56 crore, respectively. Basic EPS was ₹12.54, against ₹6.57 in the year-ago quarter and ₹10.88 in the previous quarter. On the standalone basis, revenue was ₹2,792.59 crore and profit after tax was ₹364.26 crore.

What changed in Vardhman Textiles' costs and profit?

Total expenses were ₹2,459 crore in Q2 FY27, up 7.8% from ₹2,280 crore in Q2 FY26. Cost of materials consumed increased by ₹187.03 crore to ₹1,540 crore, employee cost by ₹7.94 crore to ₹235.89 crore, finance costs by ₹5.21 crore to ₹25.77 crore, depreciation by ₹14.42 crore to ₹128.56 crore and other expenses by ₹71.15 crore to ₹630.16 crore. Other income increased by ₹16.59 crore to ₹53.37 crore. There was no exceptional item.

Profit before tax rose by ₹223.66 crore to ₹460.18 crore, while tax expense increased by ₹57.38 crore to ₹118.41 crore. Net profit consequently increased by ₹171 crore to ₹358.76 crore. Against Q1 FY27, other income was lower by ₹24.69 crore, while total expenses were higher by ₹79.94 crore; EBITDA rose by ₹87.54 crore and net profit increased by ₹44.20 crore.

How did the first half of FY27 go?

In H1 FY27, Vardhman Textiles reported revenue of ₹5,568.73 crore, up 14.4% from ₹4,865.76 crore in H1 FY26. Total income was ₹5,700.16 crore, up 14.6% from ₹4,972.84 crore, while profit before tax rose 72.3% to ₹862.42 crore from ₹500.57 crore.

Net profit for the first half was ₹673.32 crore, up 70.3% from ₹395.44 crore in H1 FY26. Basic EPS increased to ₹23.42 from ₹13.85, while revenue growth of 14.4% was accompanied by a 70.3% increase in net profit.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹14,354.82 crore, compared with ₹13,865.55 crore at 31 March 2026. Total equity rose to ₹11,130.17 crore from ₹10,587.79 crore, while borrowings fell to ₹1,795.42 crore from ₹1,854.78 crore. Cash was ₹49.27 crore, compared with ₹43.3 crore, and inventories were ₹3,380.13 crore against ₹3,643.28 crore.

H1 FY27 operating cash flow was ₹996.19 crore, up from ₹715.85 crore in H1 FY26. Investing cash flow was ₹757.43 crore of outflow, compared with ₹775.23 crore of outflow, and financing cash flow was ₹232.79 crore of outflow against ₹63.19 crore of inflow. Capital expenditure was ₹527.81 crore, compared with ₹926.09 crore in the year-ago period.

How has Vardhman Textiles done over the last 8 quarters?

Revenue reached a period high of ₹2,865.65 crore in Q2 FY27, after ₹2,703.08 crore in Q1 FY27; the low in the reported series was ₹2,385.66 crore in Q1 FY26. Net profit also peaked at ₹358.76 crore in Q2 FY27, compared with a low of ₹168.5 crore in Q3 FY26. The EBITDA margin reached 19.6%, up from its low of 11.3% in Q3 FY26.

Revenue and profit each rose year on year for two consecutive quarters. The latest quarter extended the increase from Q1 FY27, when revenue was ₹2,703.08 crore and net profit was ₹314.56 crore, with the EBITDA margin rising from 17.5% to 19.6%.

Which businesses drove the quarter?

The Textiles segment reported revenue of ₹2,792.59 crore, up 15.5% from ₹2,417.44 crore in Q2 FY26. Segment EBIT was ₹486.34 crore, compared with ₹268.02 crore, while the reported EBIT margin was 17.4%. The segment accounted for the bulk of Vardhman Textiles’ reported business revenue.

Acrylic Fibre revenue was ₹113.38 crore, up 26.8% from ₹89.41 crore in the year-ago quarter. Segment EBIT rose to ₹5.45 crore from ₹0.93 crore, and the reported EBIT margin was 4.8%.

What else did the company announce?

The board approved a change in Ravi Chauhan’s role on 6 November 2026. The company said the Executive Vice-President, who was looking after the Fabric Technical Cell at Auro Textiles in Baddi, would also oversee marketing for the Fabric Business, making him part of the senior management team.

The board approved and filed the un-audited financial results for the quarter and half year ended 30 September 2026. The same-day investor communication reported a 92% rise in standalone profit and an EBITDA margin of 22.1%. The available same-day filings did not announce a dividend, fund raise or new appointment beyond Chauhan’s added responsibility.

What did Vardhman Textiles' management say?

Management said yarn represented 69%-72% of product revenue across the two quarters shown, with domestic and export exposure roughly balanced. It also said yarn production and sales increased year on year, while grey fabric production and processed fabric sales were lower. Grey fabric production fell 4.0% to 480 Lac Mtrs and sales declined 0.8% to 469 Lakh Mtrs; processed fabric sales fell 2.5% to 392 Lakh Mtrs and 6.4% sequentially.

Management said total announced capital expenditure was ₹3,660 Cr. About 15,600 spindles and about 17000 spindles of yarn capacity expansion had been completed, the processed-fabric capacity expansion and the Vardhman Performance Fabric synthetic-woven project had been completed, and modernisation, automation and technology upgrading were largely complete.

Management said the open-end project was to be completed by FY 2027-28, garment capacity was approved for expansion from 2.2 million to 4.5 million shirts p.a. by the end of FY2026-27, and green-capex implementation was expected to be completed in phases by FY27. It also set goals of Net Zero Emissions by 2045, a 30% reduction in freshwater consumption by 2030 and 60% green power generation by FY 2027-28.

How did Vardhman Textiles shares react?

The stock fell 0.6% within 5 minutes of the filing appearing, 1.9% after 15 minutes and 2.6% after 30 minutes. It closed 4.7% below the previous close on the first session that could trade on the news. Data for the next day and five days were not available, while industry and market comparison figures were also unavailable.

Earlier results-day reactions were mixed. The shares fell 4.0% on 30 July 2026, 2.1% on 7 May 2026 and 1.7% on 21 January 2026; they rose 5.1% on 23 October 2025 and 4.9% on 30 October 2024. The remaining recorded reaction-day moves were negative on three occasions and positive on two.

How did other Other Textile Products companies do?

Among 95 Other Textile Products companies compared for the quarter, the median revenue growth was 20.8%. Vardhman Textiles’ revenue growth was below that median, with 39 peers growing more slowly and 56 growing faster than the company. Among 98 peers for which profit was compared, 70 reported higher profit.