Vardhman Textiles reported a 14% reduction in combined Scope 1 and Scope 2 greenhouse gas (GHG) emissions for FY26 compared to the FY24 baseline, as disclosed in its Business Responsibility and Sustainability Report (BRSR). The textile manufacturer achieved a 32% share of green energy in its overall energy mix during the year.

The filing was submitted to stock exchanges on August 25, 2026, pursuant to Regulation 34(2)(f) of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Intertek India Pvt Ltd provided reasonable assurance for the core indicators.

Environmental Performance

Total energy consumption remained stable at 9.017 million gigajoules in FY26, matching the 8.973 million gigajoules recorded in FY25. However, the composition of this energy shifted significantly toward renewable sources.

Renewable energy consumption rose from 2.030 million GJ in FY25 to 2.759 million GJ in FY26. This increase was driven by expanded solar installations, which reached 68 MWp, with plans to scale up to 70 MWp. The company also initiated long-term open access projects, including a 30.5 MW hybrid wind-solar project in Madhya Pradesh and a 31.9 MWp solar project in Punjab.

Water stewardship metrics showed improvement in efficiency. Total water withdrawal declined by approximately 20% to 7,541,325 kilolitres from 9,434,753 kilolitres in the prior year. Consequently, water intensity per rupee of turnover fell from 463.97 KL/Cr in FY25 to 272.60 KL/Cr in FY26.

What the Numbers Show

The divergence between rising renewable energy consumption and stable total energy use indicates a successful fuel-switching strategy rather than an overall reduction in energy demand. While total energy intake held steady at roughly 9 million GJ, the share of non-renewables dropped from 77% of the mix in FY25 to 69% in FY26. This structural shift underpins the reported 14% decline in absolute Scope 1 and 2 emissions, despite consistent operational output levels reflected in the turnover-adjusted intensity metrics.

Social and Governance Metrics

Vardhman Textiles employs a workforce of 28,192 individuals, comprising 3,636 employees and 24,556 workers. Women constitute 35% of the total workforce, including 40% of permanent workers. The company has set a target to achieve 45% overall gender diversity by 2030.

Safety performance improved for the worker category. The Lost Time Injury Frequency Rate (LTIFR) for workers decreased from 3.59 in FY25 to 1.32 in FY26. However, the report disclosed 2 fatalities among workers in FY26, compared to none in the previous year. No fatalities were reported among employees.

Supply chain sustainability efforts included sourcing 33.6% of primary raw materials sustainably. The company trained over 14,107 farmers on sustainable practices under its Better Cotton Initiative partnership. Additionally, 90% of packaging adopted was sustainable, primarily paper-based materials sourced from recycled content or agro-waste.

Vardhman Textiles has fixed Friday, August 28, 2026, as the record date for shareholders eligible to receive the dividend for the financial year ended March 31, 2026. The payout is contingent upon approval at the forthcoming Annual General Meeting (AGM).

The company issued the intimation on August 20, 2026, pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Sanjay Gupta, Company Secretary, confirmed the details in a filing to the exchanges.

Corporate Action Details

The key dates for the corporate action are as follows:

Pursuant to Section 91 of the Companies Act, 2013, the Register of Members and Share Transfer Books will remain closed from Saturday, August 29, 2026, to Saturday, September 5, 2026 (both days inclusive). This closure is necessary for the purpose of the AGM.

Shareholders holding equity shares on the record date will be eligible for the dividend, provided it is approved by the shareholders at the meeting. The company did not disclose the dividend amount per share in this communication.

Dividend Payment and Compliance

If declared, the dividend will be paid electronically within a week of the AGM’s conclusion. As mandated by SEBI, dividend payments to members holding shares in physical form will be made electronically only after they have furnished their PAN, choice of nomination, contact details, mobile number, complete bank details, and specimen signatures for their corresponding physical folios.

Members holding shares in dematerialized mode are requested to register or update their complete bank account details with their Depository Participant. Members holding shares in physical mode should update their details with M/s. Alankit Assignments Limited.

In accordance with the Income Tax Act, 2025, dividend declared and paid by the company is taxable in the hands of shareholders. The company is required to deduct tax at source (TDS) from dividend payments at applicable rates.