Spread per kg
₹148/kg
+₹25/kg QoQ
Spread improved from ₹123/kg in Q3 to ₹148/kg in Q4, driven by strong demand and higher cotton prices.
GHCLTEXTILES
Diversified
2026-04-??
GHCL Textiles Ltd — Q4 FY26
GHCL Textiles delivered a strong Q4 FY26 with revenue of ₹375 crore (+31% YoY) and EBITDA of ₹52 crore (11.7% margin).
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
GHCL Textiles delivered a strong Q4 FY26 with revenue of ₹375 crore (+31% YoY) and EBITDA of ₹52 crore (11.7% margin). The improvement was driven by a sharp recovery in spreads (from ₹123/kg in Q3 to ₹148/kg in Q4) on the back of robust demand from domestic and export markets, including a temporary surge from China. The new 25,000-spindle unit operated at 98%+ utilization, and the knitting machine expansion is on track. Management expects spreads to sustain in Q1 FY27 and reiterated its medium-term revenue target of ₹2,000 crore with 15-18% EBITDA margin by FY29-30. Key risks include geopolitical volatility (US-Iran conflict) impacting energy costs and logistics, and the sustainability of cotton price pass-through in the value chain.
Key Numbers
Spindle utilization
98%+
flat QoQ
Overall spindle utilization remained high at 98%+ in Q4, including the new 25,000 spindle unit.
Fabric revenue share
12%
+4pp YoY
Fabric contributed 12% of FY26 revenue, up from 8% in FY25, with a target of 15% in FY27.
Cotton inventory days
120 days
N/A
Company built ~120 days of cotton inventory as of March 31, 2026, to lock in lower prices.
Management Guidance
Revenue target of ₹2,000 crore by FY29-30
Management reiterated its medium-term revenue target of ₹2,000 crore, driven by vertical integration into fabric and processing.
Management guidance revenueEBITDA margin target of 15-18% by FY29-30
Management expects to achieve 15-18% EBITDA margin through product mix optimization, vertical integration, and cost efficiencies.
Management guidance marginsCapex of ₹120 crore in FY27
Planned capex includes ₹35 crore for 10 MW ground solar, ₹15 crore for knitting machines, and land investment in PMRA textile park.
Management guidance capexFabric revenue share to reach 15% in FY27
Fabric revenue share is targeted to increase from 12% in FY26 to 15% in FY27, driven by in-house knitting capacity.
Management guidance growthKey Risks
Geopolitical disruption and energy cost inflation
The US-Iran conflict has disrupted trade routes and elevated logistics costs; higher fuel prices impact synthetic portfolio and fabric manufacturing.
high · management_commentarySustainability of spread improvement
While spreads have improved, the ability to pass on higher cotton prices to downstream customers remains uncertain, especially if inflation persists.
medium · analyst_questionWorking capital elevation
Working capital days have increased to ~135-140 days due to strategic cotton inventory buildup, impacting ROE. Management expects normalization to 110-120 days.
medium · analyst_questionTapering China demand
The temporary surge in yarn demand from China has tapered since March, which could affect volume growth if other markets do not compensate.
low · management_commentaryNotable Quotes
Our strategic priorities are broadening our value added portfolio, deepening vertical integration, and sustaining operational excellence.
We are not looking at a buyback but we are looking to deploy this cash... the remaining 350 crores odd is to be deployed in next 3 years primarily towards fabric and processing.
The big risk is particularly from an inflation point of view... whether the yarn prices can continue to rise, that's a big question mark.
Frequently Asked Questions
What was GHCL Textiles's revenue in Q4 FY26?
GHCL Textiles reported revenue of ₹375 Cr in Q4 FY26, representing a +31% change compared to the same quarter last year.
What guidance did GHCL Textiles management give for FY27?
Revenue target of ₹2,000 crore by FY29-30: Management reiterated its medium-term revenue target of ₹2,000 crore, driven by vertical integration into fabric and processing. EBITDA margin target of 15-18% by FY29-30: Management expects to achieve 15-18% EBITDA margin through product mix optimization, vertical integration, and cost efficiencies. Capex of ₹120 crore in FY27: Planned capex includes ₹35 crore for 10 MW ground solar, ₹15 crore for knitting machines, and land investment in PMRA textile park. Fabric revenue share to reach 15% in FY27: Fabric revenue share is targeted to increase from 12% in FY26 to 15% in FY27, driven by in-house knitting capacity.
What are the key risks for GHCL Textiles in FY27?
Key risks include Geopolitical disruption and energy cost inflation — The US-Iran conflict has disrupted trade routes and elevated logistics costs; higher fuel prices impact synthetic portfolio and fabric manufacturing.; Sustainability of spread improvement — While spreads have improved, the ability to pass on higher cotton prices to downstream customers remains uncertain, especially if inflation persists.; Working capital elevation — Working capital days have increased to ~135-140 days due to strategic cotton inventory buildup, impacting ROE. Management expects normalization to 110-120 days.; Tapering China demand — The temporary surge in yarn demand from China has tapered since March, which could affect volume growth if other markets do not compensate..
Did GHCL Textiles meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full GHCL Textiles Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.