Vardhman Acrylics Limited reported a net profit of ₹16.22 crore for the quarter ended June 30, 2026, surging 827% year-on-year from ₹1.75 crore in Q1FY25. The company’s revenue from operations grew 12.8% to ₹78.25 crore, driven by higher volumes and improved pricing in its acrylic fibre segment. This performance underscores strong operational leverage as input costs moderated significantly compared to the prior year.

The Board of Directors approved the unaudited financial results on July 28, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subsequently ratified by the Board. Statutory Auditors SCV & Co. LLP issued an unmodified conclusion on the interim financial information, confirming compliance with Indian Accounting Standards (Ind AS).

Financial Performance Highlights

Revenue from operations stood at ₹78.25 crore in Q1FY26, up from ₹69.39 crore in Q1FY25 but slightly lower than ₹83.50 crore reported in Q4FY26. Other income contributed ₹3.98 crore, marginally down from ₹4.34 crore in the preceding quarter. Total income for the period reached ₹82.23 crore.

What the Numbers Show

The dramatic improvement in profitability was primarily fueled by a decline in the cost of materials consumed, which fell to ₹53.68 crore from ₹59.24 crore in Q1FY25, despite the revenue increase. This indicates favorable input price dynamics or better procurement efficiency. Additionally, employee benefits expenses rose modestly to ₹5.75 crore from ₹5.10 crore year-ago, while finance costs remained negligible at ₹0.05 crore. The profit before tax expanded to ₹20.92 crore from ₹2.30 crore in the corresponding quarter last year, reflecting robust operating margins.

Tax expense for the quarter was ₹4.70 crore (current tax of ₹5.04 crore less deferred tax benefit of ₹0.34 crore), resulting in the final net profit figure. The company has no subsidiaries, joint ventures, or associate companies, and operates solely in the acrylic fibre segment. Earnings per share (basic and diluted) were ₹2.02, a significant jump from ₹0.22 in Q1FY25.

Vardhman Acrylics Limited shareholders have approved a proposal to enter into related party transactions, with the resolution securing 99.92% of the votes cast in favour. The decision was finalized through a remote e-voting process that concluded on June 26, 2026, following a notice issued on May 2, 2026. The approval is subject to the provisions of Section 110 of the Companies Act, 2013 and Regulation 44 of the SEBI Listing Regulations.

The postal ballot process was overseen by M/s Khanna Ashwani & Associates, Practicing Company Secretaries, who were appointed as the scrutinizer by the Board on May 2, 2026. The voting period commenced on May 28, 2026, and concluded on June 26, 2026. A total of 117 members participated, representing 1,102,391 shares, which constituted 1.37% of the company's total paid-up share capital.

Voting Results Breakdown

The resolution required an ordinary majority and was passed with the requisite approval. The detailed voting pattern across different shareholder categories is outlined below.

The scrutinizer's report confirmed that the resolution was deemed to be passed on the last date of e-voting. The company has submitted the report to the National Stock Exchange of India Limited for information and records. The record date for determining eligibility was May 22, 2026.