Vardhman Textiles is a Ludhiana-based vertically integrated textile manufacturer producing cotton and synthetic yarn, fabrics and garments, reporting into a quarter where cotton costs swung sharply and the duty-free import window shaped raw-material strategy. The print will speak to whether Q1 FY27's margin inflection held through the quarter and how management frames the bridge to its guided 13-14% EBITDA margin for H2 FY27.
| Results date | November 06, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 2,648.18 Cr |
| Previous quarter PAT | Rs. 285.06 Cr |
| Market cap | Rs. 15,343.23 Cr |
| CMP | Rs. 529.85 |
The board meets on November 6, 2026 to approve the Q2/H1 FY27 unaudited results for the quarter and half-year ended September 30, 2026. The October 30, 2026 intimation states the meeting is to approve the Q2/H1 FY27 unaudited results; no dividend agenda phrase appears in the meeting intimation.
A Q2 FY27 earnings call is scheduled for Friday, November 6, 2026 at 16:00 hrs IST, organized by 360 ONE Capital Market Research. Management attendees include Mr. Neeraj Jain (MD), Ms. Sagrika Vir (ED), Mr. Sushil Jhamb, Mr. Rajeev Thapar (CFO) and Mr. Varun Malhotra.
The quarter tests whether Q1 FY27's margin inflection — consolidated EBITDA margin of 18.11%, up 395 bps YoY and a four-quarter high — carried through a window in which cotton rose to a peak of about Rs. 70,000/candy in early September before easing to Rs. 64,500-65,500 by month-end. Management's May 2026 condition for Q2 and Q3 FY27 exceeding prior-year levels — yarn prices, cotton costs and USD-INR persisting — was substantially met, with yarn prices up sharply year-to-date and the rupee weak at ~95-96 through the window.
Spinning conversion spreads ran at about USD 0.90/kg in Q1 FY27, with management guiding moderation to USD 0.80-0.90/kg post-Q2 FY27 and stabilization around USD 0.85-0.90, and the late-quarter fade in ICE cotton from ~93 cents/lb to ~80.13 cents/lb points to the transition the H2 guide anticipates. The duty-free cotton import window ran for the entire quarter and was extended to December 31, 2026, while the India-UK CETA became effective July 15, 2026, supporting the FTA-led export opportunity management has flagged.
Depreciation of about Rs. 126 Cr per quarter, up 15.4% YoY, remains a known drag as the Rs. 3,600 Cr capex programme capitalises, with only Rs. 800-900 Cr spilling into FY28.
Guidance scorecard: Status of management's stated goals to test on the call:
Cotton strategy and spreads
Fabric utilization and new lines
Acrylic fibre and US trade overhang
Cotton is roughly 65-70% of yarn manufacturing cost, and Indian cotton has traded about $0.20/pound above international peers, a structural disadvantage since yarn prices are set by international cotton. Management has said significant aggregate margin improvement may not happen in the medium term unless raw material costs align to international parity.
Management has guided for an EBITDA margin of 13-14% post-December, i.e., in H2 FY27. The Q2 FY27 print sits ahead of that walk, and analysts will look for the bridge management declined to give in Q1.
MD Neeraj Jain said on the Q1 FY27 call that only about Rs. 800-900 Cr of the Rs. 3,600 Cr programme will go to the next year, with the remainder already completed or completing within FY27. The processed fabric (31 million meters p.a.) and synthetic woven (18 million meters p.a.) lines commenced commercial production in March FY26.
The board-approved plan doubles garment capacity from 2.2 million to 4.5 million shirts per annum at about Rs. 125 Cr of investment, with completion by end of FY2026-27. Management expects peak revenue close to Rs. 300 Cr with full operationalization targeted by June 2027.
Standalone revenue rose 13.06% YoY and 8.50% QoQ to Rs. 2,648.18 Cr in Q1 FY27, with consolidated profit up 51.46% YoY to Rs. 314.56 Cr. The growth came alongside cotton yarn spreads of about USD 0.90/kg and Indian yarn exports up 8% this marketing year on a sharp rise to China.
Disclaimer: This earnings preview is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.