Vardhman Textiles Q2 FY26 Earnings Call Transcript
Vardhman Textiles Q2 FY26 sales stable at ₹2,468 crore. EBITDA margin at 15.5%. Expansion projects underway, expecting 30% capacity increase. Expect market stabilization by Q4 FY26.
The company discusses both challenges (US tariffs, cotton prices) and opportunities (expansion, mitigation strategies), suggesting a medium level of impact on the company's performance.
The announcement discusses the transcript of an earnings call, presenting a mix of challenges and strategic initiatives, resulting in a neutral sentiment.
* Vardhman Textiles held its Q2 FY26 earnings conference call on 23 October 2025. * Q2 sales remained stable at ₹2,468 crore against ₹2,565 crore last year. * EBITDA margin moderated to 15.5% due to marginally higher operating costs. * The company has activated a mitigation framework prioritizing diversification, innovation, deep customer engagement, strategic partnerships and operational agility. * Indian spinning industry is facing significant challenges due to persistently high domestic cotton prices compared to global levels. * Yarn prices declined by 2% to 3% in the past month with import duty relaxation. * The company anticipates further market stabilization by quarter 4 FY '26 and expects impact in quarter 3 and quarter 4. * The Vardhman performance fabric plant is under erection and expected to be commissioned within this quarter, with production initiating in quarter 3 and capacity utilization anticipated to reach about 20% to 30% during quarter 4. * A line expansion at the MP location is also underway. * Expansion initiatives are projected to increase overall production capacity by about 30%. * Neeraj Jain mentioned that all expansion modernizations will be completed by December, January, so the impact of that will start happening in the fourth quarter. * The company is banking upon the US trade deals should happen by November or so. * The yarn prices have been hovering in the range of about $2.70 to $3 for 30s count per kg. * The synthetics plant capex is up to about ₹300 crore and the new line -- the additional line is about ₹200 crore.
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