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Revenue
₹2,498 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
Pending
latest reported figure
Source
nse announcements
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Vardhman Textiles reported a decent Q4 FY26 performance, with gross margins expanding ~300bps QoQ, though EBITDA margins were impacted by a one-time mark-to-market forex loss of ~₹57-58 crore. The key positive is a structural turnaround in the spinning industry: ~11-12 million spindles have permanently shut, reducing effective capacity to 41-42 million spindles from a potential 59-60 million. Simultaneously, demand has surged—China's monthly yarn imports from India jumped from 7-8 million kg to 30 million kg, and US tariffs removal has boosted home textile exports to near-full utilization. Cotton prices have aligned globally, with spreads improving from 60-65 cents to 90-95 cents per kg. Management expects Q1 FY27 to be significantly better as fabric price hikes lag and the forex loss reverses. Risk: Sustainability of current spreads depends on cotton prices and China demand; any reversal could pressure margins.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects Q1 FY27 to reflect improved spreads and reversal of one-time forex loss, with fabric price hikes lagging by 2-3 months.
- 90% of spinning modernization completed; remaining 10% to be finished in next 6 months, improving cost and flexibility.
- Land likely allotted by Dec-Jan; drawing board stage, finalization expected in 2-3 months, subject to sustainability.
- New performance fabric line commissioned; expects full utilization in 6-9 months as orders ramp up.
Risks flagged
- Current spreads of 90-95 cents may not sustain if cotton prices fall or China demand weakens; management unable to predict beyond 3 months.
- Industry's request for duty-free cotton imports to ensure competitive raw material is pending government decision; if denied, cost disadvantage may return.
- Fabric and garment segments face resistance to price increases; lag of 2-3 months could compress margins if yarn prices correct.
- Iran-US tensions and speculative money in cotton futures could cause sudden price swings, impacting input costs and demand.
Key quotes
- The good news is one the US tariffs were over. As a result of that India became more competitive.
- Today there's hardly any disruption as far as the long-term in the cotton prices have been in this the relative to each other.
- Most of the spinners from India in export market are sold for 3 months as of now.
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