GHCL Textiles

GHCL Textiles announced its Q2 financial results showing revenue growth to Rs 3.38 billion from Rs 3.04 billion year-over-year. However, net profit declined to Rs 160 million compared to Rs 206 million in the same period last year. The company's EBITDA improved to Rs 368.1 million from Rs 271.2 million year-over-year, with EBITDA margin expanding to 10.89% from 8.90% in the previous year.

The Securities Appellate Tribunal issued a stay order on October 8, 2025, halting SEBI's directive from August 29, 2025, concerning Anurag Dalmia related to Golden Tobacco Limited. The tribunal stayed the debarment and penalty recovery, requiring a 50% penalty deposit within four weeks. The next hearing is scheduled for January 9, 2026. GHCL Textiles Limited, which disclosed this information, stated the matter pertains to Golden Tobacco Limited and has no impact on its business or operations.

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.