Vardhman Textiles , a leading Indian textile manufacturer, has shared insights into its future outlook and operational expectations. The company anticipates market stabilization by the fourth quarter of fiscal year 2026, with its new synthetic fabric plant expected to achieve 20-30% capacity utilization during the same period.

Market Outlook and Export Concerns

The company has expressed cautious optimism about the future, citing positive signs from US trade talks. However, Vardhman Textiles expects possible negative effects in the third and fourth quarters due to their typical focus on exports. This outlook reflects the company's awareness of potential challenges in the global market.

New Synthetic Fabric Plant

A key highlight of Vardhman's strategy is its new synthetic fabric plant. The company projects that this facility will reach 20-30% capacity utilization by Q4 FY26, indicating a gradual ramp-up in production over the coming quarters.

Cotton Crop Outlook

In terms of raw materials, Vardhman Textiles anticipates the cotton crop output to be approximately 31 million bales. This projection is crucial for the company's production planning and cost management.

Financial Performance

According to the company's latest financial results for Q2 FY26:

The company's performance shows a slight decline in revenue and profitability compared to the same quarter last year, reflecting the challenging market conditions.

Segment Performance

In the textiles segment, which is Vardhman's primary business:

• Q2 FY26 Revenue: ₹2,417.44 crore
• Q2 FY26 Segment Profit: ₹268.02 crore

The company's focus remains on navigating the current market challenges while preparing for future growth through its new synthetic fabric plant and ongoing operational improvements.

Vardhman Textiles continues to monitor developments in the US market, particularly regarding potential tariffs on textile imports. While the company has limited direct exposure to the US market, it serves some US-based brands indirectly and is actively engaging with these customers through various pricing strategies.

As the textile industry faces evolving global trade dynamics, Vardhman Textiles' cautious optimism and strategic investments position it to potentially capitalize on market stabilization expected in the coming fiscal year.

Vardhman Textiles Limited, a leading textile manufacturer, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company reported a steady performance in Q2 FY26, with a slight increase in revenue and a marginal decline in net profit compared to the same period last year.

Financial Highlights

Quarterly Performance

For the quarter ended September 30, 2025, Vardhman Textiles reported:

• Revenue from operations of Rs 2,480.10 crores, up by 1.03% from Rs 2,454.78 crores in Q2 FY25.
• Net profit after tax of Rs 187.76 crores, compared to Rs 196.51 crores in the corresponding quarter of the previous year, marking a 4.45% decrease.

Half-Year Results

The company's performance for the first half of FY26 showed:

• Revenue from operations reached Rs 4,865.76 crores, a slight increase of 1.14% from Rs 4,811.01 crores in H1 FY25.
• Net profit stood at Rs 395.44 crores, down by 9.17% from Rs 435.35 crores in the same period last year.

Operational Update

During the quarter, Vardhman Textiles issued 500 equity shares under its Employee Stock Options Scheme, each with a face value of Rs 2 per share.

Market Outlook

The company stated it is closely monitoring developments regarding the imposition of tariffs by the United States Government on textile imports. While Vardhman Textiles has limited direct exposure to the US market, it serves some US-based brands indirectly. The company is engaging with these customers through various pricing strategies and assessing the potential impact on its financial performance.

Management Commentary

The management of Vardhman Textiles emphasized that the company will continue to assess the evolving situation around tariffs and review its strategies accordingly. They assured stakeholders that necessary adjustments to financial statements would be made if required.

Conclusion

Despite facing challenges in the global textile market, Vardhman Textiles has maintained a relatively stable performance in Q2 FY26. The company's proactive approach to monitoring market conditions and engaging with customers demonstrates its commitment to navigating the complex international trade landscape.