Vardhman Textiles (502986) Q4 25/26 earnings summary

Executive summary

• Removal of U.S. tariffs improved India's competitiveness, boosting demand and capacity utilization for exporters and upstream suppliers.

• Vertically integrated textile manufacturer with over 60 years of experience and a global presence in 75+ countries.

• Commercial production started at two new units in March FY26, expanding processed and technical textiles capacity.

• Sustainability initiatives include net zero emissions by 2045 and 60% green power by FY28.

• Audited standalone and consolidated financial results for the year ended March 31, 2026, were approved and reported with an unmodified auditor's opinion.

Financial highlights

• FY26 revenue from operations at ₹9,652 Cr, up 1% year-over-year; Q4 FY26 revenue at ₹2,441 Cr, down 1% year-over-year.

• FY26 EBITDA at ₹1,494 Cr, down 8% year-over-year; Q4 FY26 EBITDA at ₹354 Cr, down 13%.

• FY26 PAT at ₹740 Cr, down 16% year-over-year; Q4 FY26 PAT at ₹179 Cr, down 22%.

• Standalone gross margin (FY26): 45.4%.

• Earnings per share (consolidated, FY26): Rs. 26.18 (FY25: Rs. 31.05).

Outlook and guidance

• Board approved expansion of garment unit capacity to 4.5 million shirts p.a. by FY27, with ₹125 Cr investment.

• Green capex initiatives underway, targeted for completion by FY27.

• Management expects Q1 and subsequent quarters to outperform Q4, driven by improved spreads and lagged price increases in fabric.

• Company continues to monitor regulatory developments, especially regarding new labour codes and their impact on employee benefits.

• Industry optimism is high, but sustainability depends on raw material prices, currency, and global events.