Vardhman Textiles

Vardhman Textiles Limited announced the retirement of Mr. Tara Chand Gupta, Director (M.P. Location), from the company's services effective September 30, 2025. He will cease to be a Senior Management Personnel of the company from the close of business hours on that date.

Vardhman Textiles Limited has started commercial production of approximately 18,000 spindles as part of its expansion and modernization plan for spinning capacity. This development follows the company's earlier capex plan announcement made on January 24, 2024, regarding the expansion-cum-modernization of its spinning operations.

Vardhman Textiles held its earnings conference call for Q1 FY26, reporting operational performance at par or slightly better than the previous quarter, excluding extraordinary items. The company faces significant challenges as Indian cotton trades at a premium of $0.80-$0.82 per pound during the quarter, rising to $0.85 in July 2025 due to higher MSP. The MSP for the upcoming cotton season increased by nearly 8%, making Indian cotton among the most expensive globally. Cotton Corporation of India (CCI) bought 30% of total cotton produced and increased prices by INR 2,500-3,000 per candy in the past month. Indian mills doubled cotton imports to 35-40 lakh bales compared to typical 15-18 lakh bales annually, but face an 11% import duty disadvantage versus competitors like Bangladesh and Vietnam. New US tariffs on textile imports created market volatility and cautious buyer behavior, leading to delayed orders and inventory adjustments. However, diversified geographic exposure across UK, EU, Japan, South America, Egypt, Australia and domestic markets provided stability. Yarn and fabric sales remained broadly in line with the corresponding quarter last year. The company's fabric expansion is progressing on schedule, expected to contribute meaningfully from Q3 onwards. ReNova mechanical recycling plant expansion began operations in July, and 14,000 spindles capacity for Melange yarn became operational. Management indicated yarn margins around $0.70 for Indian spinners versus international spread of $0.85-$0.90, with fabric margins at 17-18%. Both yarn and fabric divisions operated at full capacity utilization during the quarter.