Company Overview and Disclosure

This document is a regulatory filing submitted to BSE Limited and the National Stock Exchange of India Ltd. It contains the Earnings Presentation for the un-audited financial results of Vardhman Textiles Limited for the quarter ended 30th June, 2026, filed pursuant to Regulation 30 of the SEBI LODR Regulations, 2015. The document was signed and submitted by Sanjay Gupta, Company Secretary & Compliance Officer.

Business and Operational Highlights

Production and Sales Metrics (Standalone, Q1 FY27 vs. Q1 FY26 vs. Q4 FY26)

Yarn Segment:

  • Production: 70,046 MT (Q1 FY27) vs. 68,639 MT (Q1 FY26) - Up 2.0% YoY; vs. 69,330 MT (Q4 FY26) - Up 1.0% QoQ.
  • Sales (Incl. Internal Transfer): 70,052 MT (Q1 FY27) vs. 65,329 MT (Q1 FY26) - Up 7.2% YoY; vs. 71,904 MT (Q4 FY26) - Down 2.6% QoQ.

Grey Fabric Segment:

  • Production: 462 Lac Mtrs (Q1 FY27) vs. 496 Lac Mtrs (Q1 FY26) - Down 6.9% YoY; vs. 521 Lac Mtrs (Q4 FY26) - Down 11.3% QoQ.
  • Sales (Incl. Internal Transfer): 463 Lakh Mtrs (Q1 FY27) vs. 497 Lakh Mtrs (Q1 FY26) - Down 6.8% YoY; vs. 527 Lakh Mtrs (Q4 FY26) - Down 12.1% QoQ.

Processed Fabric Segment:

  • Production: 408 Lac Mtrs (Q1 FY27) vs. 410 Lac Mtrs (Q1 FY26) - Down 0.5% YoY; vs. 437 Lac Mtrs (Q4 FY26) - Down 6.6% QoQ. (Includes capacities from two new units started in March '26).
  • Sales (Incl. Internal Transfer): 419 (Q1 FY27) vs. 418 (Q1 FY26) - Up 0.2% YoY; vs. 440 (Q4 FY26) - Down 4.8% QoQ.

Installed Capacity

The company is India's largest vertically integrated textile manufacturer with an installed capacity of:

  • Over 1.25 million spindles for yarn.
  • 1,550 looms for grey fabric.
  • 240 million meters per annum for processed fabric (includes new units).
  • 7,500 shirts per day for garments.

Sustainability Goals (ESG Vision)

The presentation outlined several long-term sustainability targets:

  • 50% reduction in waste sent to landfill by 2030.
  • Achieve Net Zero Emissions by 2045.
  • Attain Net Positive Impact by FY 2050.
  • 100% ZHDC MRSL Compliance by FY 2030.
  • Zero Fatalities & occupational diseases.
  • 30% reduction in freshwater consumption by 2030.
  • 34% of inputs sourced sustainably in FY26.
  • Achieve 60% green power generation by FY 2027-28.
  • 100% sustainable packaging by FY 2030.
  • 4,465 training & awareness programs held.

Awards and Recognitions

Vardhman Textiles received multiple awards in 2026, including:

  • CII Industrial Safety Excellence Summit & Risk-to-resilience Safety Challenge: Appreciation Award.
  • 10th Edition of CII National Circle Competition: Platinum Award.
  • 12th CII Regional Final Level Kaizen Competition: Special Jury Award.
  • 25th CII National Excellence Practice Competition on Sustainability: Two Silver Awards.
  • 56th CII National Kaizen Competition: One Platinum and Two Silver Awards.
  • 3rd QCFI Convention on Operational Excellence (COEX-2026): Two Par Excellence Awards and One Excellence Award.

Capital Expenditure (Capex) Status

A total announced capex of ₹3,660 crore is in progress, with the following status updates:

Yarn Capacity Expansion:

  • Expansion of approx. 15,600 spindles completed in H1 FY26.
  • Expansion of approx. 17,000 spindles has been completed.
  • An open-end project is to be completed by FY 2027-28.

Processed Fabric Capacity Expansion:

  • Commercial production started in March FY26.

Vardhman Performance Fabric (Synthetic Woven):

  • Commercial production started in March FY26.

Modernization, Automation & Technology Upgradation:

  • Initiative largely completed, leading to improved operational efficiency.

Green Capex:

  • Being implemented in phases with expected completion by FY27.

Garments Capacity Expansion (Newly Approved):

  • The board approved expanding the garment unit capacity from 2.2 million to 4.5 million shirts per annum.
  • The expansion is expected to be completed by the end of FY 2026-27.
  • The investment for this expansion is approximately ₹125 crore.

Standalone Balance Sheet Highlights (Historical)

Key balance sheet figures for the past five fiscal year-ends (in ₹ Crore):

| Particulars | 31 Mar '22 | 31 Mar '23 | 31 Mar '24 | 31 Mar '25 | 31 Mar '26 |

| Shareholders Funds | 7,539 | 8,294 | 8,805 | 9,578 | 10,188 |

| Long-term borrowings | 921 | 931 | 413 | 749 | 1,231 |

| Short-term borrowings | 1,059 | 746 | 1,377 | 489 | 622 |

| Total Borrowings | 1,980 | 1,677 | 1,790 | 1,238 | 1,852 |

| Cash and cash equivalents | 62 | 75 | 33 | 52 | 40 |

| Other Bank balance | 54 | 296 | 51 | 33 | 37 |

| Total Cash & Equivalents | 116 | 370 | 84 | 85 | 77 |

| Investments | 1,576 | 2,438 | 1,282 | 1,384 | 1,353 |

| Net Debt | 288 | (1,131) | 424 | (231) | 422 |

| TOTAL ASSETS | 10,576 | 10,861 | 11,487 | 11,900 | 13,343 |

Shareholding Pattern (As of June 2026)

The presentation listed the top institutional shareholders:

  • HDFC Mutual Fund: 6.12%
  • Nippon Life India: 2.98%
  • DSP Mutual Fund: 1.47%