GHCL Textiles reported a net profit of ₹39.35 crore for the quarter ended June 30, 2026 (Q1FY27), marking a sharp 191% increase from ₹13.52 crore in the same period of the previous year. Revenue from operations surged 52.7% to ₹408.94 crore, driven by higher sales volumes and a significant shift in product mix towards higher-margin fabrics. This strong top-line performance significantly boosted the bottom line, with Profit Before Tax (PBT) rising to ₹52.79 crore from ₹18.11 crore in Q1FY26. The Board of Directors approved these unaudited financial results on July 30, 2026.

Q1FY27 Financial Performance

The company's financial health showed marked improvement across key metrics. EBITDA more than doubled to ₹690M from ₹300M in the year-ago quarter, while EBITDA margin expanded significantly to 16.9% from 11.2% YoY, reflecting improved operating leverage and cost efficiencies. Earnings per share (EPS) increased to ₹4.12 from ₹1.41 in the year-ago quarter. Total income stood at ₹409.60 crore, while total expenses were ₹356.81 crore. Although other income declined to ₹0.66 crore from ₹2.32 crore in Q1FY26, this was more than offset by the substantial rise in revenue from operations. Cost of raw materials consumed rose to ₹253.54 crore from ₹188.46 crore, reflecting increased production activity.

The table below summarises the key financial metrics for the quarter:

Product Mix Shift and Operational Updates

A key driver of the margin expansion was the increased contribution from fabric sales. In Q1FY27, the share of revenue from fabric increased to 16% compared to 9% in Q1FY26, due to higher sales of both knitted fabric and greige fabric. Consequently, the revenue share from yarn decreased to 84% from 91% in the same period last year. CEO Marshal Sonavane stated that Q1FY27 was favorable for the spinning industry, driven by sequential improvement in cotton and yarn spreads. With sufficient cotton inventory, the company remains well-positioned to benefit from the improved operating environment and protected from raw material volatility.

Capacity utilization remained robust at 99% in Q1FY27, consistent with recent quarters. Sales volume for yarn rose to 10.5 thousand MT from 8.4 thousand MT in Q1FY26. Knitted fabric sales volume surged to 898 MT from 247 MT, while greige fabric sales grew to 59 lakh meters from 36 lakh meters. Phase 1 of the knitting expansion is operational, with Phase 2 on track for commissioning in FY27.

Strategic Focus on Green Energy and Vertical Integration

The company continues to emphasize operational excellence and cost efficiency through renewable energy adoption. GHCL Textiles currently has 65 MW of green energy capacity, meeting around 70% of its energy needs. An additional 11 MW green energy capacity expansion is underway, expected to be completed in Q3FY27, which will further increase renewable energy contribution and reduce energy costs. The long-term target is to enhance the green energy portfolio to 75 MW, catering to up to 75% of energy requirements.

Vertical integration remains a core strategic priority. The company aims to integrate yarn manufacturing with knitted, weaving, and dyed fabrics to yield superior margins. Management indicated that these initiatives are expected to more than double revenue over time and drive long-term EBITDA margins to the 15-18% range. The company also participated in Bharat Tex 2026, showcasing its premium yarns and fabrics while highlighting its progress towards vertical integration and sustainable manufacturing.

Auditor Review and Compliance

The unaudited financial results were reviewed by Deloitte Haskins & Sells Chartered Accountants LLP, the statutory auditor, which issued an unmodified review conclusion in accordance with Standard on Review Engagements (SRE) 2410. The results were prepared in compliance with Ind AS 34 and Regulation 33 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Comparative figures for Q1FY26 and FY26 were reviewed/audited by the predecessor auditor. The company confirmed no deviations in the utilization of funds raised and no outstanding defaults on loans or debt securities as of June 30, 2026.

Employee Stock Option Scheme Approval

In addition to the financial results, the Board approved the GHCL Textiles Employee Stock Option Scheme 2026 (ESOS 2026), subject to shareholder approval via postal ballot. The scheme allows for the grant of up to 45,00,000 equity shares, representing approximately 4.70% of the paid-up equity share capital as of March 31, 2026. Eligible participants include permanent employees and whole-time directors, excluding promoters, independent directors, and directors holding more than 10% of outstanding equity shares. The exercise price will be determined based on the market price preceding the grant date, with a minimum vesting period of one year and a maximum exercise period of five years from vesting.

GHCL Textiles Limited will host an earnings conference call on Thursday, July 30, 2026, at 4:00 PM IST to discuss its first-quarter fiscal year 2027 (Q1FY27) financial results. The announcement was made pursuant to Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, ensuring transparency for investors regarding the company’s performance in the quarter ended June 30, 2026.

The conference call aims to provide stakeholders with insights into the company’s operational and financial metrics for Q1FY27. Senior management will address questions from investors and analysts following the presentation of the quarterly numbers. This engagement is a standard procedural requirement for listed entities to communicate material information directly with the market.

Management Participation

The call will feature key executives from GHCL Textiles Limited, offering direct access to decision-makers. The participants include:

• R.S. Jalan, Non-Executive Director
• Raman Chopra, Non-Executive Director
• Marshal Sonavane, Chief Executive Officer
• Parasuraman M, Chief Financial Officer

These leaders are expected to elaborate on the strategic initiatives driving the company’s performance and provide context for the reported figures.

Call Logistics

Go India Advisors is hosting the event. Investors and analysts are advised to pre-register using the provided link to avoid wait times and join via a Diamond Pass. Participants should dial in at least five to ten minutes before the scheduled start time to ensure connectivity.

For further assistance, investors may contact Garima Singla or Mehal Gogia at Go India Advisors. The company secretary, Lalit Narayan Dwivedi, issued the notice on July 23, 2026.