Did Vardhman Textiles See a 5% Decline in Q2 Net Profit?
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Synopsis
Vardhman Textiles Limited's recent Q2 FY26 results reveal a notable 5% drop in net profit, with revenue also slipping slightly. Despite these declines, their operating performance shows promising improvements. Explore the implications of these results on the textile industry and Vardhman's market position.
Key Takeaways
- Vardhman Textiles experienced a 5% decline in net profit for Q2 FY26.
- Revenue dipped by 1% compared to last year.
- EBITDA improved by 6%, reaching Rs 334 crore.
- Exports made up 43% of total sales in FY25.
- Stock prices rose significantly post-results announcement.
Mumbai, Oct 23 (NationPress) Vardhman Textiles Limited revealed its results for the September quarter (Q2 FY26) on Thursday, reporting a 5% year-on-year (YoY) decrease in net profit, amounting to Rs 187.76 crore, down from Rs 197.29 crore in the same quarter of the previous financial year (Q2 FY25).
Revenue also experienced a slight decline of 1%, totaling Rs 2,480 crore compared to Rs 2,502.4 crore a year earlier, as per their stock exchange filing.
Nonetheless, the company noted an improvement in operating performance, with their earnings before interest, tax, depreciation, and amortization (EBITDA) increasing by 6% to Rs 334 crore.
The EBITDA margin rose to 13.5%, up from 12.6% in the previous year, marking a gain of 90 basis points.
Based in Chandigarh, the company stated it has limited direct exposure to the US market but continues to support various US-based brands indirectly.
The textile sector exhibited sluggish growth during the quarter, while exports accounted for 43% of the company’s total sales in FY25.
Following the announcement of results, Vardhman Textiles’ stock surged by 8.52%, reaching Rs 443.05 on Thursday, although it remains down nearly 13% year-to-date in 2025.
Over the past five days, shares increased by Rs 32.85 or 8.06%. In the last month, the stock saw a rise of Rs 23.15 or 5.54%.
Over the last six months, shares dropped by Rs 57.05 or 11.46%, and over the past year, the decline stood at Rs 10.95 or 2.55%.
Vardhman Textiles is recognized as a vertically integrated textile manufacturer in India, producing a diverse array of products, including yarn, fabric, sewing threads, and garments.
It stands as a significant figure in the Indian textile industry, operating multiple manufacturing facilities across the nation and holding a notable share in the global export market.
The company emphasizes excellence in manufacturing, innovation, and sustainability, as stated on its website.
Point of View
It is crucial to present an unbiased perspective on Vardhman Textiles’ recent financial results. The 5% drop in net profit and slight revenue decline raise important questions about the company's market strategy. However, the improvement in EBITDA suggests a focus on operational efficiency. Our commitment is to provide readers with comprehensive insights that reflect the current dynamics of the textile industry.
NationPress
23/10/2025
Frequently Asked Questions
What was Vardhman Textiles' net profit for Q2 FY26?
Vardhman Textiles reported a net profit of Rs 187.76 crore for Q2 FY26, reflecting a 5% year-on-year decline.
How did the revenue perform in Q2 FY26?
The company’s revenue slipped by 1% to Rs 2,480 crore compared to Rs 2,502.4 crore in the same quarter of the previous year.
What was the EBITDA for the quarter?
Vardhman Textiles reported an EBITDA of Rs 334 crore, which is a 6% increase from the previous year.
What percentage of sales did exports contribute in FY25?
Exports contributed 43% to the company’s total sales in FY25.
How did the stock perform after the results announcement?
Following the results, Vardhman Textiles' stock surged by 8.52% to Rs 443.05, although it remains down nearly 13% year-to-date.
