Vardhman Textiles Q2 FY26 Profit Slips 14.2% YoY to ₹187.8 Crore; Shares Jump Over 8% on Stable Margins

Mumbai, 23 October 2025: Vardhman Textiles Ltd (NSE: VTL) reported a 14.2% year-on-year (YoY) decline in consolidated net profit to ₹187.76 crore for the quarter ended September 30, 2025 (Q2 FY26), compared to ₹218.64 crore in the corresponding quarter last year. Despite subdued export demand, the company’s revenue from operations remained steady at ₹2,480.10 crore, reflecting strong operational resilience and a recovery in domestic markets.

Profit Dips 14.2% YoY as Input Costs and Currency Pressures Weigh on Margins

Vardhman’s consolidated profit before tax (PBT) fell 14.4% YoY to ₹248.79 crore, primarily due to higher input costs and unfavourable currency movements, which affected export realisations. Sequentially, profit before tax declined 9.9% compared to Q1 FY26, when it stood at ₹276.11 crore.

The earnings per share (EPS) slipped to ₹6.57 in Q2 FY26 from ₹6.92 in the same period last year. Total income dropped slightly by 2.6% YoY to ₹2,516.88 crore, while expenses remained broadly stable at ₹2,280.36 crore, showing controlled cost management despite market headwinds.

Stable Revenue at ₹2,480 Crore Reflects Resilient Domestic Demand

Revenue from operations was recorded at ₹2,480.10 crore, a marginal 0.89% decrease YoY from ₹2,502.42 crore, but up 3.96% quarter-on-quarter (QoQ) from ₹2,385.66 crore in Q1 FY26. The sequential improvement was driven by a rebound in domestic textile demand and better capacity utilisation, offsetting a muted export environment.

Raw material costs eased slightly to ₹1,353 crore from ₹1,379 crore in Q2 FY25, supported by stable cotton prices. Employee costs rose to ₹228 crore, reflecting wage revisions and production scaling. Depreciation and amortisation stood at ₹114 crore, showing ongoing capital investment. Finance costs increased to ₹20.56 crore, up from ₹17.80 crore last year, while other expenses remained steady at ₹559 crore.

H1 FY26 Net Profit Falls 9.5% to ₹395.44 Crore; Total Income Marginally Up

For the half year ended 30 September 2025, Vardhman Textiles’ consolidated net profit declined 9.5% YoY to ₹395.44 crore, compared to ₹437.07 crore in H1 FY25. Total income inched up 0.29% YoY to ₹4,972.84 crore, reflecting stable topline growth amid market volatility.

Profit before tax stood at ₹524.90 crore, down 12.9% YoY, primarily due to increased finance and employee costs. The company’s EPS for the half year dropped from ₹15.30 to ₹13.85, consistent with profit contraction.

Standalone Performance Mirrors Consolidated Trend; Revenue Slightly Down

On a standalone basis, net profit fell 13.8% YoY to ₹189.39 crore, compared with ₹219.64 crore a year earlier. Standalone revenue from operations stood at ₹2,417.44 crore, down marginally from ₹2,454.78 crore.

For the first half of FY26, standalone net profit totalled ₹391.01 crore, compared with ₹446.54 crore in H1 FY25, while total income was ₹4,882.20 crore, nearly unchanged from ₹4,899.95 crore a year ago.

Operational Efficiency and Product Diversification Cushion Performance

Despite industry-wide challenges, Vardhman continued to maintain operational discipline and strengthen its domestic presence. The management attributed the Q2 performance to higher raw material costs and currency fluctuations, though domestic demand remained strong.

With festive demand gaining momentum and inventory levels normalising, the company expects sequential improvement in the second half of FY26. Strategic focus remains on cost optimisation, product diversification, and capacity enhancement to sustain profitability and competitiveness.

Share Price Surges Over 8% Post Q2 Results Announcement

As of 2:27 pm IST on 23 October 2025, the share price of Vardhman Textiles Ltd was trading 8.10% higher at ₹441.30, compared to the previous close. The stock opened at ₹430.50, touched a day’s high of ₹454.25 and a low of ₹426.60. The company’s market capitalisation stood at ₹12,780 crore, with a P/E ratio of 14.74 and a dividend yield of 1.13%.

Vardhman Textiles delivered a stable revenue performance in Q2 FY26 despite headwinds in export markets and higher input costs. Its focus on operational efficiency and domestic demand resilience supports steady growth. The company’s half-yearly results show disciplined cost control and sustained market position in India’s textile sector.

REF: https://nsearchives.nseindia.com/corporate/VTL_23102025123447_VTXL_Results.pdf

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