Varvee Global Q4 FY26 Investor Presentation Highlights

Date: 28th May, 2026

KMP / Board / Auditor Changes

Board of Directors:

Mr. Jaimin Gupta - Chairman & Managing Director (appointed July 2025 with 3-year mandate)
Mr. Nipun Arora - Director (oversees company administration and organizational management)
Mr. Kandarp - Independent Director (Practicing Chartered Accountant with 20 years' experience)
Mr. Tarachand Agrawal - Whole-time Director (seasoned textile professional with 20+ years expertise)
Mr. Ankit - Independent Director (Chartered Accountant with 12+ years in finance and taxation)
Mr. Ravi - Independent Director (Fellow Chartered Accountant with strong taxation and compliance experience)
Ms. Aarti - Independent Director (skilled Chartered Accountant, resigned w.e.f. 2nd March 2026)

Company Secretary:

Abira Mansuri (signed the regulatory filing)

Financial Results (Standalone)

Q4 FY26 Performance (Figures in ₹ Millions):

Revenue from Operations: ₹233.84 (vs. ₹75.03 in Q4 FY25, +211.70% YoY)
Gross Profit: ₹75.91 (vs. -₹348.13 in Q4 FY25)
Gross Margin: 32.46% (vs. -464.00% in Q4 FY25, +49,646 bps improvement)
Employee Expenses: ₹12.78 (vs. -₹7.07 in Q4 FY25)
Other Expenses: ₹122.02 (vs. ₹175.92 in Q4 FY25, -30.64% YoY)
EBITDA: -₹58.89 (vs. -₹516.98 in Q4 FY25, -88.60% YoY)
EBITDA Margin: -25.19% (vs. -689.00% in Q4 FY25)
Finance Cost: ₹0.01 (vs. ₹12.13 in Q4 FY25, -99.92% YoY)
Depreciation: ₹15.65 (vs. ₹11.53 in Q4 FY25)
Other Income: -₹151.82 (vs. ₹379.39 in Q4 FY25)
Profit Before Tax: -₹226.38 (vs. -₹161.25 in Q4 FY25)
Taxes: ₹59.54 (vs. -₹72.54 in Q4 FY25)
Profit After Tax: -₹285.92 (vs. -₹88.71 in Q4 FY25)
EPS: -₹16.65 (vs. -₹3.78 in Q4 FY25)

FY2026 Annual Performance (Figures in ₹ Millions):

Revenue from Operations: ₹628.00 (vs. ₹424.53 in FY25, +47.90% YoY)
COGS: ₹219.09 (vs. ₹863.16 in FY25, -74.60% YoY)
Gross Profit: ₹408.91 (vs. -₹438.63 in FY25)
Gross Margin: 65.11% (vs. -103.30% in FY25, +16,843 bps improvement)
Employee Expenses: ₹43.55 (vs. ₹52.89 in FY25, -17.70% YoY)
Other Expenses: ₹311.71 (vs. ₹407.49 in FY25, -23.50% YoY)
EBITDA: ₹53.66 (vs. -₹899.01 in FY25)
EBITDA Margin: 8.54% (vs. -211.80% in FY25)
Finance Cost: ₹14.28 (vs. ₹128.44 in FY25, -88.88% YoY)
Depreciation: ₹53.07 (vs. ₹43.51 in FY25, +22.00% YoY)
Other Income: ₹197.73 (vs. ₹1,399.06 in FY25, -85.87% YoY)
Profit Before Tax: ₹184.03 (vs. ₹328.10 in FY25, -43.90% YoY)
Taxes: ₹59.54 (vs. ₹142.66 in FY25, -58.26% YoY)
Profit After Tax: ₹124.49 (vs. ₹185.44 in FY25, -32.87% YoY)
PAT Margin: 19.82% (vs. 43.68% in FY25)
EPS: ₹4.89 (vs. ₹7.90 in FY25)

Balance Sheet Highlights (Standalone)

FY2026 Balance Sheet (Figures in ₹ Millions):

Assets:

Property, Plant and Equipment: ₹431.42 (vs. ₹682.18 in FY25)
Assets Held for Sale: ₹144.20 (vs. ₹337.11 in FY25)
Non Current Investments: ₹104.02 (vs. ₹0 in FY25)
Deferred Tax Assets (Net): ₹618.01 (vs. ₹672.54 in FY25)
Inventories: ₹177.43 (vs. ₹80.76 in FY25)
Trade Receivables: ₹159.54 (vs. ₹74.66 in FY25)
Cash & Cash Equivalents: ₹33.65 (vs. ₹134.30 in FY25)
Total Assets: ₹1,835.88 (vs. ₹2,044.12 in FY25)

Equity and Liabilities:

Equity Share Capital: ₹257.64 (vs. ₹234.60 in FY25)
Other Equity: ₹512.47 (vs. ₹122.82 in FY25)
Total Equity: ₹770.11 (vs. ₹357.42 in FY25)
Non Current Borrowings: ₹0.97 (vs. ₹486.87 in FY25)
Current Borrowings: ₹27.80 (vs. ₹455.72 in FY25)
Trade Payables: ₹274.27 (vs. ₹178.24 in FY25)
Total Current Liabilities: ₹1,064.61 (vs. ₹1,197.71 in FY25)

Strategic & Operational Updates

Financial Restructuring:

Achieved bank debt-free status on June 3, 2025
Secured "No Due Certificates" from all major lenders including SBI and Bank of Baroda
Confirmation of "No Dues" with respect to Fixed Deposits
India Ratings assigned 'IND BB/Positive' issuer rating on January 28, 2026
Legacy 'IVR D' (Default) rating withdrawn by Infomerics on December 31, 2025

Capacity Expansion:

50% increase in non-denim production capacity from 12 lakh to 18 lakh meters per month announced January 5, 2026
Long-term target of 50 lakh meters per month non-denim capacity
Current 18MM non-denim line operating at ~90% utilization
Capacity conversion from denim to non-denim underway

Product Portfolio Shift:

Strategic shift from core denim to higher-margin, value-added non-denim fabrics including shirting and suiting
Denim portfolio includes Satin Denims, High Fashion Denims, Flat Finish Denims, and denims with LYCRA dualFX Technology
Non-denim range includes Poplin Fabrics and Suiting Fabrics

Manufacturing Operations:

Integrated manufacturing platform at Narol unit, Ahmedabad, Gujarat
Facility spread across 52,000 Sq. Yards in Ranipur Village, Narol
Vertically integrated capabilities covering yarn warping, sizing, dyeing, weaving, and finishing
Sole manufacturing hub following sale of certain other assets

Management Commentary:

Mr. Jaimin K. Gupta, Chairman & Managing Director stated: "FY26 was an important year in Varvee Global's transition, marked by strong revenue growth, improved gross profit, positive full-year EBITDA and a healthier balance sheet. Our shift towards higher-value nondenim shirtings and suitings is reflected in the improvement in gross margin, while reduced borrowings provide a stronger base for disciplined growth."

Market Opportunity

Industry Outlook:

Indian textile market projected to reach USD 250 billion by 2030-31
Domestic textile market estimated at USD 146-222 billion by 2033
Indian textile export target of USD 100 billion
Denim market installed capacity: 1,700 million meters (production ~1,000 MM)
Denim apparel market projection: USD 1.83-9.15 billion by 2033

Structural Demand Drivers:

China Plus One advantage shifting textile volumes to India
Government policy support including PM MITRA Parks and PLI Scheme
Formalwear premiumization trend
India-UK Comprehensive Economic and Trade Agreement (CETA) signed July 2025 providing 99% tariff elimination
Compliance-led sourcing favoring Indian mills

Dividend Declaration

Not Specified

Board Meeting Outcomes

Not Specified

Disinvestment / Strategic Actions

Not Specified

Other Operational / Legal / Strategic Disclosures

Company changed name from Aarvee Denims and Exports Ltd to Varvee Global Ltd
New management took control on July 5, 2025
Share Purchase Agreement executed on September 5, 2024
EGM resolutions approved on August 19, 2025