Vardhman Textiles Q1 FY26: Yarn Sales Dip Sequentially, Processed Fabric Sales See Growth Amid Mixed Operational Performance
By Shishta Dutta | Published at: Jul 22, 2025 06:03 PM IST
Ludhiana, July 22, 2025 — Vardhman Textiles Ltd (NSE: VTL, BSE: 502986) released its Q1 FY26 operational update under SEBI LODR guidelines, revealing a mixed performance across core divisions. While yarn sales volumes slipped sequentially, processed fabric sales saw a positive uptick—reflecting resilient demand for finished textile products amid softer raw material trends. The company also initiated a 17,000-spindle expansion at its Budhni facility, expected to enhance processed fabric output and stabilize margins going forward.
Yarn Segment: Sales Drop Sequentially Despite Higher YoY Output
The company produced 68,639 metric tons of yarn in Q1 FY26, marking a 2.6% YoY increase over 66,881 MT in Q1 FY25 and a 1.4% QoQ increase over 67,694 MT in Q4 FY25.
However, yarn sales (including internal transfers) stood at 65,329 MT, showing a 4.9% QoQ decline from 68,684 MT and a 3.7% YoY growth over 62,969 MT.
| Yarn (MT) | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Production | 68,639 | 67,694 | 66,881 | +2.6% | +1.4% |
| Sales | 65,329 | 68,684 | 62,969 | +3.7% | –4.9% |
Grey Fabric: Sequential and Annual Decline in Production
Grey fabric production dropped to 496 lakh meters in Q1 FY26 from 515 lakh meters in Q4 FY25 and 524 lakh meters in Q1 FY25, indicating a 5.6% QoQ and 5.3% YoY contraction.
Sales volume remained stable YoY at 497 lakh meters, slightly up from 492 lakh meters in Q1 FY25 but down marginally from 513 lakh meters in Q4 FY25.
| Grey Fabric (Lakh Mtrs) | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Production | 496 | 515 | 524 | –5.3% | –3.7% |
| Sales | 497 | 513 | 512 | –2.9% | –3.1% |
Processed Fabric: Sales Surge Despite Lower Production
Processed fabric production marginally fell to 410 lakh meters from 421 in Q4 FY25 and 422 in Q1 FY25. However, the company reported an encouraging YoY rise in sales to 418 lakh meters, up from 407 in Q1 FY25, and also sequentially stronger than 415 lakh meters in Q4 FY25.
| Processed Fabric (Lakh Mtrs) | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| Production | 410 | 421 | 422 | –2.8% | –2.6% |
| Sales | 418 | 415 | 407 | +2.7% | +0.7% |
Stock Performance on 22 July 2025
As of market close on July 22, 2025, shares of Vardhman Textiles Ltd (NSE: VTL) ended the session at ₹484.00, down ₹16.65 or 3.33% from the previous close. The stock opened at ₹500.65 and touched an intraday high of ₹501.55 before declining to a low of ₹483.35. A mid-session bounce was seen around 12:25 PM when it briefly traded at ₹497.00, but selling pressure dragged it down by the close.
Company Overview
Vardhman Textiles Limited, listed on BSE and NSE, is one of India’s leading integrated textile manufacturers. The company operates in the segments of yarn, fabric, garments, and threads, with a strong presence across domestic and international markets. Headquartered in Ludhiana, Punjab, Vardhman has been delivering excellence in textiles since 1965.
REF:https://nsearchives.nseindia.com/corporate/VTL_22072025124020_VTL_Production_and_Sales_Data.pdf
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations
