Did Vardhman Textiles’ Q2 Net Profit Decline by 5%?
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Synopsis
Vardhman Textiles Limited has reported a concerning 5% drop in net profit for Q2 FY26, raising questions about its performance in the textile sector. Despite a decline in revenue, operating performance saw an uptick, highlighting areas of resilience. Explore the implications of these results on the company's future and market position.
Key Takeaways
- Net profit fell by 5% to Rs 187.76 crore.
- Revenue decreased by 1% to Rs 2,480 crore.
- EBITDA rose by 6% to Rs 334 crore.
- EBITDA margin expanded to 13.5%.
- Exports accounted for 43% of total sales in FY25.
Mumbai, Oct 23 (NationPress) Vardhman Textiles Limited revealed its results for the September quarter (Q2 FY26) on Thursday, reporting a 5% decrease in net profit year-on-year (YoY), amounting to Rs 187.76 crore, down from Rs 197.29 crore in the corresponding 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 prior, as indicated in its stock exchange announcement.
Despite this, the operating performance saw improvement, with earnings before interest, tax, depreciation, and amortization (EBITDA) rising 6% to Rs 334 crore.
The EBITDA margin increased to 13.5%, up from 12.6% in the same period last year, representing a gain of 90 basis points.
The Chandigarh-based firm noted that while it has limited direct exposure to the US market, it continues to cater to various US-based brands indirectly.
Growth in the textile segment was subdued during the quarter, although exports accounted for 43% of the company’s total sales in FY25.
Following the announcement of these results, Vardhman Textiles’ shares surged 8.52% to Rs 443.05 on Thursday, yet the stock has seen a decline of 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 rose by Rs 23.15 or 5.54%.
In the past six months, shares dropped by Rs 57.05 or 11.46%. In the last year, shares fell by Rs 10.95 or 2.55%.
Vardhman Textiles is a vertically integrated textile manufacturer in India, producing a diverse range of products such as yarn, fabric, sewing threads, and garments.
It stands as a significant player in the Indian textile industry, with numerous manufacturing facilities nationwide and a robust global export market.
The company emphasizes manufacturing excellence, innovation, and sustainability, as stated on its website.
Point of View
It's crucial to analyze Vardhman Textiles’ recent financial performance with an unbiased lens. The reported decline in net profit and revenue raises valid concerns, yet the improvement in operational metrics suggests potential resilience. Stakeholders should stay informed as the company navigates these challenges.
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% decrease compared to the previous year.
How much did the company's revenue decline?
The company's revenue declined by 1%, totaling Rs 2,480 crore in Q2 FY26.
Did Vardhman Textiles experience any operational improvements?
Yes, the company's EBITDA increased by 6%, reaching Rs 334 crore, indicating improved operational performance.
What percentage of total sales did exports contribute?
Exports contributed 43% to Vardhman Textiles' total sales in FY25.
Where is Vardhman Textiles located?
Vardhman Textiles is based in Chandigarh, India.
