GHCL Textiles Files Transcript of Q4 FY26 Earnings Call

GHCL Textiles Limited has filed the transcript of its investors' conference call held on April 30, 2026. The call, which focused on the company's performance for the fourth quarter and full year ended March 31, 2026, featured senior management including Mr. R.S. Jalan, Mr. Raman Chopra, Mr. Marshal Sonavane (CEO), and Mr. M. Parasuraman (CFO).

During the call, management provided insights into the operating environment, noting challenges such as disruptions in trade routes and elevated logistics costs due to geopolitical events, alongside pressure on energy markets. However, they also expressed optimism about domestic market conditions improving significantly in Q4 FY26, with demand strengthening across knitting and weaving segments. Cotton prices saw an upward trend, rising from approximately ₹55,000 per candy in December 2025 to around ₹62,000, with domestic availability remaining comfortable.

GHCL Textiles reported robust financial performance for Q4 FY26, with revenue increasing by 31% year-on-year to ₹375 crore, EBITDA at ₹52 crore, and PAT at ₹28 crore. For the full year FY26, revenue grew 14% to ₹1,335 crore, and EBITDA increased by 34% to ₹156 crore. The company maintained optimal utilization across its units, with its new 25,000-spindle unit stabilizing and operating at optimum capacity. Investments in rooftop solar capacity are contributing to energy cost efficiency, with full benefits expected in FY27.

Looking ahead, GHCL Textiles plans to install additional knitting machines and expand its rooftop solar capacity in FY27. A significant strategic development is the approval for land allocation in PM MITRA Park, Virudhunagar, Tamil Nadu, which positions the company for future growth and product integration. Management expressed cautious optimism for the current quarter, while acknowledging the fluid global macro conditions. Strategic priorities include broadening the value-added portfolio, deepening vertical integration, and sustaining operational excellence.

Discussions during the Q&A session covered aspects like the continuation of Q4 spreads into Q1 FY27, the incremental benefit from renewable capex, plans for free cash flow deployment (with no immediate buyback plans, but focus on deploying remaining CAPEX), demand drivers in domestic and export markets, and the increase in spreads from Q3 to Q4 FY26. Management also discussed inventory levels, cotton procurement strategies, and the pass-through of price increases downstream. The company reiterated its vision to become a ready-to-cut fabric supplier and aims for fabric revenue to contribute approximately 15% of total revenue in FY27, with a long-term revenue target of ₹2,000 crore in the next three years.