Vardhman Textiles Limited , a leading integrated textile manufacturer, has announced the commencement of commercial production for approximately 17,000 spindles as part of its ongoing capacity expansion plan. This development marks a significant step in the company's growth strategy, following its earlier capex plan announcement in May 2024.

Q1 FY26 Financial Performance

For the quarter ended June 30, 2025, Vardhman Textiles reported a mixed financial performance:

The company's revenue from operations increased by 3.2% year-on-year, reaching Rs. 2,342.32 crore. However, EBITDA declined by 3.0% to Rs. 397.00 crore, with the EBITDA margin contracting by 108 basis points to 16.4%. Profit After Tax (PAT) saw a more significant decline of 11.1%, settling at Rs. 202.00 crore, with the PAT margin decreasing by 137 basis points to 8.3%.

Production and Sales Performance

Vardhman Textiles reported mixed results across its product lines for Q1 FY26:

Yarn

• Production increased by 2.6% year-on-year to 68,639 metric tons
• Sales (including internal transfers) rose by 3.7% to 65,329 metric tons

Grey Fabric

• Production decreased by 5.3% year-on-year to 496 lac meters
• Sales (including internal transfers) declined by 2.9% to 497 lac meters

Processed Fabric

• Production decreased by 2.8% year-on-year to 410 lac meters
• Sales (including internal transfers) increased by 2.7% to 418 lac meters

Expansion and Future Outlook

The company's recent commencement of commercial production for 17,000 spindles is part of a larger capacity expansion plan. Vardhman Textiles had previously announced a total capex of Rs. 3,535 crore, which includes:

• Expansion of yarn capacity
• Increase in processed fabric capacity by 31 million meters annually
• Addition of 18 million meters annually in synthetic woven fabric capacity
• Modernization, automation, and technological upgradation initiatives
• Green capex projects

These expansion efforts are expected to strengthen Vardhman Textiles' position in the market and potentially drive future growth.

Conclusion

While Vardhman Textiles has shown progress in its expansion plans, the company faces challenges in maintaining profitability amidst a competitive market environment. The mixed Q1 FY26 results highlight the need for continued focus on operational efficiency and market adaptation. As the textile industry navigates through various economic factors, Vardhman Textiles' strategic investments in capacity and technology may prove crucial for its long-term success.

Vardhman Textiles Limited , one of India's largest vertically integrated textile manufacturers, has reported a mixed set of financial results for the first quarter. The company saw an increase in revenue but experienced a decline in profitability compared to the same period last year.

Revenue Growth

Vardhman Textiles reported a consolidated revenue of ₹2,385.66 crore, marking a 3.3% increase from ₹2,308.59 crore in the same quarter of the previous year. This growth in revenue demonstrates the company's ability to expand its sales despite challenging market conditions.

Profit Decline

Despite the revenue growth, the company's profitability took a hit. Consolidated net profit stood at ₹207.68 crore, down 13.4% from ₹239.77 crore in the corresponding quarter of the previous year. This decline in profit indicates pressure on the company's margins.

EBITDA and Margin Compression

Earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased to ₹397.00 crore from ₹409.00 crore year-over-year. The EBITDA margin compressed to 16.4% from 17.5%, reflecting increased operational costs and competitive pressures in the textile industry.

Segment Performance

The textile segment, which is the company's primary business, reported revenue of ₹2,342.32 crore, up from ₹2,270.31 crore in the same period last year. The acrylic fiber segment saw more significant growth, with revenue increasing to ₹69.38 crore from ₹57.05 crore.

Operational Highlights

Vardhman Textiles reported improvements in production across its key segments:

• Yarn production increased by 2.6% to 68,639 metric tons from 66,881 metric tons in the same quarter last year.
• Processed fabric production, however, saw a slight decline of 2.8% to 410 lac meters from 422 lac meters.

Expansion and Modernization

The company continues to focus on growth and efficiency improvements. Vardhman Textiles has recently commenced commercial production of about 17,000 spindles as part of its planned capacity expansion. This expansion is expected to contribute to increased production capabilities in the coming quarters.

Outlook

As Vardhman Textiles continues its expansion and modernization efforts, including the ongoing installation of additional spindles and processed fabric capacity, the company appears positioned for potential growth. However, managing costs and improving profitability will likely remain key focus areas for the management in the coming quarters.

Investors and analysts will be watching closely to see how Vardhman Textiles balances its growth initiatives with profitability improvement measures in the competitive textile industry landscape.