Cotton price volatility and spread sustainability
Current spreads of 90-95 cents may not sustain if cotton prices fall or China demand weakens; management unable to predict beyond 3 months.
VARDHMANTEXTILES / Q4-FY26 / risks
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Vardhman Textiles · Material risks, their source context, and severity in the latest available quarter.
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Material risks this quarter
high
Duty-free cotton import policy uncertainty
Industry's request for duty-free cotton imports to ensure competitive raw material is pending government decision; if denied, cost disadvantage may return.
Fabric price hike lag and customer resistance
Fabric and garment segments face resistance to price increases; lag of 2-3 months could compress margins if yarn prices correct.
Geopolitical disruptions and hedge fund speculation
Iran-US tensions and speculative money in cotton futures could cause sudden price swings, impacting input costs and demand.