Vardhman Textiles Limited – Investor Presentation Summary

Key Operational Highlights

  • Yarn Production: 71,105 MT in Q2 FY27, up 1.6% YoY from 69,961 MT.
  • Yarn Sales (Incl. Internal Transfer): 69,948 MT in Q2 FY27, up 1.5% YoY from 68,913 MT.
  • Grey Fabric Production: 480 Lac Mtrs in Q2 FY27, down 4.0% YoY from 500 Lac Mtrs.
  • Grey Fabric Sales (Incl. Internal Transfer): 469 Lakh Mtrs in Q2 FY27, down 0.8% YoY from 473 Lakh Mtrs.
  • Processed Fabric Production: 402 Lac Mtrs in Q2 FY27, up 2.0% YoY from 394 Lac Mtrs.
  • Processed Fabric Sales (Incl. Internal Transfer): 392 Lac Mtrs in Q2 FY27, down 2.5% YoY from 402 Lac Mtrs.

Key drivers of operational performance: Modernization, automation, and technology upgradation initiatives largely completed, leading to improved operational efficiency and enhanced process capabilities.

Segment-wise Performance

Not Specified

Financial Highlights

Revenue: Rs. 2,793 crore (Q2 FY27)

EBITDA: Rs. 635 crore (Q2 FY27)

PAT: Rs. 364 crore (Q2 FY27)

EPS: Rs. 12.58 (Q2 FY27)

Margins: EBITDA Margin 22.1%, PAT Margin 12.7% (Q2 FY27)

YoY/QoQ comparison: Revenue grew 16% YoY and 5% QoQ. PAT grew 92% YoY and 28% QoQ. EBITDA grew 66% YoY and 20% QoQ.

Drivers of financial performance: Higher EBITDA margin expansion of 657 bps YoY.

Comparison to market estimates: Not Specified

Key Risks: Not Specified

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Not Specified

Current Assets/Liabilities: Not Specified

Working Capital/Leverage Metrics: Net Debt stood at ₹121 crore as of 30 Sep '26.

Financial Health Insights: Total Cash and cash equivalents were ₹168 crore as of 30 Sep '26. Shareholders' Funds were ₹10,707 crore as of 30 Sep '26.

Capex & Cash Flow Health

Capital Expenditure: Total Announced Capex is ₹3,660 Cr.

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Net Debt was ₹121 crore as of 30 Sep '26, compared to ₹422 crore as of 31 Mar '26.

Investment Rationale: Expansion of yarn capacity, processed fabric capacity, and garments capacity; modernization and green capex.

Strategic & R&D Initiatives

Investments in Innovation: Yarn capacity expansion of 15,600 spindles and 17,000 spindles completed; open-end project to be completed by FY 2027-28; processed fabric capacity expansion completed; Vardhman Performance Fabric (Synthetic Woven) completed.

Expected impact on growth: Garment unit capacity expansion from 2.2 million to 4.5 million shirts p.a. expected to be completed by end of FY2026-27.

Strategic Rationale: To enhance operational efficiency and process capabilities.

Industry Trends & Business Environment

Not Specified

Management Commentary & Growth Outlook

Strategic Outlook: Not Specified

FY Guidance: ESG targets include 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; 30% reduction in freshwater consumption by 2030; achieve 60% green power generation by FY 2027-28; 100% sustainable packaging by FY 2030.

Market Share Targets: Not Specified

Risks and Opportunities: Not Specified

ESG Updates

  • 50% Reduction in waste sent to landfill by 2030.
  • Achieve Net Zero Emissions 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.