GHCL Textiles Reports Q2 FY26 Results: Revenue Up, Profit Down Amid Improved EBITDA

GHCL Textiles Limited has released its financial results for the second quarter of fiscal year 2026, showcasing a mixed performance with revenue growth and improved operational efficiency, despite a decline in net profit.

Revenue and Profit Analysis

The company reported a revenue of Rs 338.04 crore for Q2 FY26, marking an 11% increase from Rs 304.62 crore in the same quarter last year. This growth in revenue demonstrates the company's ability to expand its market presence and sales volume.

However, GHCL Textiles experienced a decrease in net profit, which stood at Rs 16.01 crore for Q2 FY26, compared to Rs 20.60 crore in Q2 FY25. This represents a year-over-year decline of approximately 22.3%.

Operational Performance

Despite the drop in net profit, GHCL Textiles showed improvement in its operational efficiency:

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	338.04	304.62	+11.0%
EBITDA	36.81	27.12	+35.7%
EBITDA Margin	10.89%	8.90%	+199 bps
Net Profit	16.01	20.60	-22.3%

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant improvement, rising to Rs 36.81 crore from Rs 27.12 crore in the previous year, representing a 35.7% increase. This growth in EBITDA outpaced the revenue growth, indicating enhanced operational efficiency.

The EBITDA margin expanded by 199 basis points, reaching 10.89% compared to 8.90% in the same quarter last year. This margin expansion suggests that GHCL Textiles has been successful in managing its operational costs effectively.

Half-Yearly Performance

For the first half of FY26 (H1 FY26), GHCL Textiles reported:

Total revenue: Rs 605.79 crore
Net profit: Rs 29.53 crore
EBITDA: Rs 70.38 crore

Balance Sheet Highlights

As of September 30, 2025:

Total assets: Rs 1,709.65 crore
Total equity: Rs 1,462.34 crore
Current assets: Rs 464.15 crore
Current liabilities: Rs 111.01 crore

The company maintains a strong balance sheet with a healthy equity position.

Recent Developments

GHCL Textiles paid a dividend of Rs 0.5 per share for the year ended March 31, 2025, amounting to a total payout of Rs 4.78 crore.
The company capitalized and commenced commercial production of its new 25,536 spindles at the Paravai location in Madurai during the quarter ended June 30, 2025.
The Board of Directors has approved an additional capital budget of approximately Rs 35 crore for a 10 MW ground-mounted solar power project for FY26.
Some assets previously classified as "held for sale" at Manaparai and Madurai units, with a book value of Rs 2.25 crore, have been reclassified to Property, Plant & Equipment due to revised business requirements.

GHCL Textiles continues to focus on operational efficiency and expansion, as evidenced by its improved EBITDA performance and recent capacity additions. While the company faces challenges in maintaining profit levels, its revenue growth and margin improvement indicate resilience in a competitive market environment.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.42%	-2.49%	+0.61%	-2.80%	-27.02%	+12.72%

The Securities Appellate Tribunal (SAT) has issued a stay order on a recent Securities and Exchange Board of India (SEBI) directive concerning Anurag Dalmia in relation to Golden Tobacco Limited. This development, disclosed by GHCL Textiles Limited , marks a significant turn in the ongoing regulatory proceedings.

Key Details of the SAT Order

Date of Stay Order: October 8, 2025
Original SEBI Order Date: August 29, 2025
Next Hearing Date: January 9, 2026

Conditions of the Stay Order

The SAT has imposed specific conditions while granting the stay:

Debarment Stay: The tribunal has halted the debarment imposed by SEBI.
Penalty Recovery: The recovery of the penalty amount has been stayed.
Partial Deposit Requirement: Anurag Dalmia is required to deposit 50% of the penalty amount within four weeks from the date of the SAT order.

Impact on GHCL Textiles Limited

GHCL Textiles Limited, which disclosed this information as part of its regulatory obligations, has clarified that this matter:

Pertains specifically to Golden Tobacco Limited
Has no bearing on GHCL Textiles Limited's business or operations

Regulatory Compliance

This disclosure was made by GHCL Textiles Limited in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has duly informed both the National Stock Exchange of India Limited and BSE Limited about this development.

While the SAT's stay order provides temporary relief for Anurag Dalmia, it is important to note that this is an interim measure. The final outcome of the case will be determined in future hearings, with the next one scheduled for early 2026.