Vardhman Textiles Q3 FY26: Revenue Up 2% to ₹2,452 Cr, PAT Down 17% to ₹170 Cr
Vardhman Textiles reported Q3 FY26 revenue of ₹2,452 crore, up 2% YoY. PAT declined 17% to ₹170 crore due to increased employee costs from new labor codes. The company is undertaking significant capex of ₹3,535 crore, including processed fabric capacity expansion by 31 million meters annually, expected by Q4 FY26.
The decline in profitability and the impact of new labor codes are significant factors. However, ongoing capacity expansions and a large capex pipeline suggest potential future growth, balancing the immediate impact.
Revenue shows marginal growth, but profitability has declined significantly due to increased expenses related to new labor codes. Capacity expansion plans are positive, but the immediate financial performance is mixed.
Vardhman Textiles Limited has released its earnings presentation for the third quarter and nine months ended December 31, 2025. The company reported a revenue from operations of ₹2,452 crore for Q3 FY26, marking a 2% year-on-year increase from ₹2,404 crore in Q3 FY25. However, Profit After Tax (PAT) saw a decline of 17% to ₹170 crore, compared to ₹204 crore in the same period last year. For the nine-month period ended December 31, 2025, revenue grew by 1% to ₹7,212 crore, while PAT decreased by 14% to ₹561 crore.
The company's EBITDA for Q3 FY26 stood at ₹360 crore, a 6% decrease from ₹383 crore in Q3 FY25, with the EBITDA margin contracting by 126 basis points to 14.2%. The decrease in PAT is partly attributed to an increase of ₹23.58 crore in employee benefit expenses due to the implementation of new Labour Codes.
Vardhman Textiles, a vertically integrated textile manufacturer with over USD 1 billion in turnover, highlighted its capacity expansions. The yarn segment completed an expansion of approximately 15,600 spindles in H1 FY26 and has an upcoming open-end project of 6,624 rotors. Processed fabric capacity is set to increase by 31 million meters annually, with commercial production expected by Q4 FY26. Additionally, a new capacity of 18 million meters annually for Vardhman Performance Fabric (Synthetic Woven) is also expected to commence production by Q4 FY26. The company has announced a total capex of ₹3,535 crore, with green capex expected to be completed by FY27.
The financial highlights also show a Net Worth of ₹9,578 crore as of March 31, 2025, and a Total Debt of ₹1,238 crore. The company maintained a Return on Capital Employed (RoCE) of 11% and Return on Equity (ROE) of 9% for FY25.
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