GHCL Textiles

GHCL Textiles reported revenue of Rs. 270 crores for Q1 FY26, declining 6.5% year-on-year due to reduced yarn sales volumes amid challenging market conditions. However, EBITDA increased 10.5% to Rs. 32 crores and PAT grew 15% to Rs. 14 crores, driven by operational efficiency and cotton cost savings. The company successfully commissioned its new 25,000 spindle unit in June, expected to generate additional revenue of Rs. 250 crores annually with full ramp-up by Q3. Cotton prices firmed up to Rs. 58,000 per candy from Rs. 55,000 previously, while cotton-yarn spread compressed to Rs. 130 per kg in Q1 from Rs. 132 in Q4. Export revenue dropped significantly to 6% of total revenue from 11% in the previous quarter, primarily due to European market sluggishness. The company is proceeding with vertical integration plans, installing 15 knitting machines from October with Rs. 38 crores investment expected to generate Rs. 75-80 crores additional revenue. Management expects Q2 to remain challenging due to US tariff uncertainties affecting customer demand, with recovery anticipated in the second half pending tariff clarity.