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Earnings Call Transcript

GHCL Textiles Earnings Call Transcript: Key Takeaways

GHCL Textiles delivered strong revenue growth and margin expansion, benefiting from low-cost cotton inventory despite global volatility.

Guidance and delivery
Management target Revenue 100.0% FY29
Highlights
Revenue growth52% YoY growth driven by volume and better pricing.
MarginsStructural expansion targeted toward 16-18% via vertical fabric integration.
Order bookMaintaining a healthy 1.5 to 2-month forward order book.
Demand visibilityStrong demand from EU and domestic markets; FTA tailwinds ahead.
Management confidenceConfident but cautious regarding global cotton price volatility and geopolitics.

Growth

Revenue surged 52% YoY to ₹410 Cr; EBITDA margins hit 17% driven by favorable inventory spreads.

Outlook

Targeting ₹2,000 Cr revenue by FY29; executing ₹350-400 Cr capex for vertical integration into fabrics.

Risks

High sensitivity to cotton price spikes; geopolitical uncertainty and high-cost inventory cycle starting next quarter.

Last quarter's promises, checked

Delivered

  • Targeted 15% revenue from fabric → delivered 16% (= BEAT)
  • Guided 15% EBITDA margin → delivered 17% (= BEAT)
  • Guided 98% plus utilization → delivered 98%+ (= BEAT)

Partly delivered

  • Guided ₹1,335 Cr FY26 revenue → delivered ₹410 Cr Q4 (= PARTIAL)
Source

Earnings Call Transcript filed with NSE, NSE: GHCLTEXTIL. Summary written with AI assistance from the document.

Read the document ↗

GHCL Textiles Ltd: key numbers

Share price
₹134.24
Market cap
₹1,283 Cr
Revenue (annual)
₹1,319 Cr
Net profit (annual)
₹70.37 Cr
P/E (TTM)
11.1×Sector 48.2×
Promoter holding
19.21%+0.01% QoQ
FII holding
13.06%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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13:42 IST NSE
Financial Results

GHCL Textiles Q2 FY27 Results: Net Profit ₹35.8 Cr, Up 123.7% YoY

GHCL Textiles approved Q2FY27 financial results and an additional capital budget of ₹415.25 crore. The investment targets a new 58,368-spindle spinning unit in Tamil Nadu.

Key figure
Net profit ₹35.8 Cr · +123.7% YoY