Vardhman Polytex Limited , a key player in the textile industry, has reported a significant turnaround in its financial performance for the half-year ended September 30, 2025. The company's unaudited financial results, approved by its board, reveal a notable shift from losses to profits.

Financial Highlights

*As of March 31, 2025

Key Observations

Profitability Turnaround

Vardhman Polytex has shown a remarkable improvement in its financial performance, reporting a net profit before tax of Rs. 665.38 lakhs for the half-year ended September 30, 2025. This marks a significant turnaround from the loss of Rs. 1,012.44 lakhs in the corresponding period of the previous year.

Operating Profit

The company's operating profit before working capital changes stood at Rs. 1,326.52 lakhs, compared to a loss of Rs. 1,182.97 lakhs in the same period last year, indicating improved operational efficiency.

Cash Flow Challenges

Despite the profit, the company reported negative cash flow from operating activities of Rs. 591.73 lakhs, primarily due to increased inventory levels. This suggests potential liquidity challenges that may require attention.

Asset Growth

Total assets increased to Rs. 28,605.27 lakhs as of September 30, 2025, up from Rs. 27,577.32 lakhs on March 31, 2025, indicating a growth in the company's asset base.

Equity Position

The company continues to face challenges with its equity position, reporting negative equity of Rs. 22,059.90 lakhs, which may be a concern for long-term financial stability.

Management Commentary

Adish Oswal, Chairman and Managing Director of Vardhman Polytex Ltd., stated, "Our focus on operational efficiency and strategic initiatives has begun to yield positive results, as evidenced by our return to profitability. While challenges remain, particularly in managing our working capital and improving our equity position, we are committed to sustaining this positive momentum."

Auditor's Review

Navneet Sehgal & Co., the company's auditors, conducted a review of the financial results. Their report states that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

Outlook

While Vardhman Polytex has shown a significant improvement in its profitability, the negative operating cash flow and equity position suggest that the company may need to focus on improving its working capital management and strengthening its balance sheet in the coming quarters.

Investors and stakeholders will likely keep a close watch on how the company manages its liquidity and capitalizes on this turnaround to achieve sustainable growth in the long term.

Vardhman Polytex Limited , a prominent player in the textile industry, has announced the complete utilization of funds raised through its Rights Issue in October 2024 and Preferential Issue in March 2025. The company made this declaration for the quarter ended March 31, 2025, marking a significant milestone in its financial management and transparency efforts.

Fund Utilization and Reporting

The company stated that it would discontinue submitting the Statement of Deviation/Variation for fund usage from the quarter ending June 30, 2025 onwards. This decision comes as a result of the full deployment of the raised capital, indicating that the funds have been used as per the intended purposes outlined during the issuance.

Audit Committee Oversight

Vardhman Polytex's Audit Committee has taken note of this development, ensuring proper governance and oversight of the fund utilization process. This step aligns with the company's commitment to maintaining transparency and adhering to regulatory requirements.

Financial Performance

While the primary news focuses on the fund utilization, it's worth noting some key financial highlights from the company's recent performance:

The company's financial results for the quarter ended June 30, 2025, show a revenue from operations of ₹63.28 crore, compared to ₹89.76 crore in the same quarter of the previous year. The net profit after tax stood at ₹1.94 crore, down from ₹9.85 crore year-over-year.

Segment Performance

Vardhman Polytex operates primarily in the textiles segment, which contributed ₹63.28 crore to the total revenue for the quarter. The company also has a presence in the real estate sector, although no significant revenue was reported from this segment during the period.

Conclusion

The complete utilization of funds raised through the Rights and Preferential Issues demonstrates Vardhman Polytex's efficient capital allocation and commitment to its growth strategies. As the company moves forward, stakeholders will be keen to observe how these investments translate into operational performance and financial results in the coming quarters.