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Earnings Call

Vardhman Textiles Earnings Call: Key Takeaways

Vardhman Textiles reports a recovery driven by normalized cotton spreads and robust yarn demand from China, following a difficult period caused by high domestic cotton prices and US tariffs on downstream exporters.

Highlights
Revenue growthRecovery driven by strong yarn exports and normalized raw material costs.
MarginsSpreads improved to $0.90-$0.95 from $0.60-$0.65 lows.
Order bookExport yarn market sold out for approximately two to three months.
Demand visibilityStrong visibility for 3 months with Chinese yarn demand surging.
Management confidenceOptimistic about sector recovery but cautious on global geopolitical disruptions.

Growth

Yarn spreads improved by 40-50% as domestic cotton prices aligned with international benchmarks; China demand surged.

Outlook

Capex for performance fabrics and PM MITRA park projects to drive next growth phase; fabric utilization improving.

Risks

Mark-to-market forex losses of ₹57-58cr impacted EBITDA; high volatility in New York cotton futures remains a concern.

Source

Earnings Call filed with BSE, NSE: VTL. Summary written with AI assistance from the document.

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Vardhman Textiles Ltd: key numbers

Share price
₹554.00
Market cap
₹16,043 Cr
Revenue (annual)
₹9,869 Cr
Net profit (annual)
₹745.2 Cr
P/E (TTM)
18.9×Sector 55.7×
Promoter holding
65.08%-0.01% QoQ
FII holding
6.07%Current quarter

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

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Vardhman Textiles Ltd reported revenue from operations of ₹2,703 Cr (+13.3% YoY) and net profit of ₹314.6 Cr (+51.5% YoY) for Q1 FY27.

Key figure
Net profit ₹314.6 Cr · +51.5% YoY