Vardhman Textiles (502986) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue from operations was ₹2,865.65 crore and PAT was ₹358.76 crore; H1 revenue was ₹5,568.73 crore and PAT was ₹673.32 crore.

• H1 consolidated PBT rose to ₹895.24 crore from ₹524.90 crore a year earlier; H1 operating cash flow was ₹996.19 crore.

• Yarn-led demand, higher realizations, cotton inventory gains and operating efficiencies supported improvement; fabric remained pressured by exports, elevated yarn costs and capacity ramp-up.

Financial highlights

• Standalone Q2 revenue from operations was ₹2,792.59 crore versus ₹2,417.44 crore; PAT was ₹364.26 crore versus ₹189.39 crore.

• Consolidated Q2 total income was ₹2,919.02 crore and PBT was ₹477.17 crore, versus ₹248.79 crore in Q2 FY26.

• Standalone H1 revenue was ₹5,440.77 crore, PBT ₹861.23 crore and PAT ₹649.32 crore; consolidated H1 PBT was ₹895.24 crore.

• Q2 standalone EBITDA margin was 22.1%, up 657 bps YoY and 269 bps QoQ; H1 margin was 20.8%, up 481 bps YoY.

• Yarn demand and prices improved over six months; lower-cost cotton inventory generated a gain that may not recur with higher-cost new-season cotton.

Segment performance

• Yarn Q2 production was 71,105 MT, up 1.6% YoY; sales including internal transfer were 69,948 MT, up 1.5%.

• Grey fabric production was 480 lakh metres, down 4.0% YoY, and sales were 469 lakh metres, down 0.8%; processed fabric production was 402 lakh metres, up 2.0%, with sales down 2.5%.

• Spinning ran at nearly 100% utilization; yarn benefited from stronger export-led demand, improved prices and cost control.

• Fabric utilization was 70%-75% in Q2 and ~80% currently; fabric results faced ~20% YoY higher input costs, limited pass-through and weak fixed-cost absorption.

• Performance-fabric operations progressed through sampling and customer approvals; two customers approved the plant and began ordering. Garmenting produced ~7,000 shirts/day, with existing-site capacity being doubled.