Vardhman Textiles Ltd reported Q2 FY27 numbers with revenue of Rs. 2,865.65 Cr (+15.55% YoY) and PAT growth of +90.89% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 06, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,865.65 Cr (+15.55% YoY) |
| PAT (Q2) | Rs. 357.03 Cr (+90.89% YoY) |
| EBITDA margin | 22.04% (+658 bps YoY) |
| EPS (Q2) | Rs. 12.54 (+90.87% YoY) |
VTL delivered 15.55% YoY revenue growth with EBITDA margin expanding ~658 bps YoY to 22.04%, driving PAT-to-owners up 90.89% YoY — the fifth consecutive quarter of PAT acceleration. Earnings are cash-backed (CFO/PAT 1.48x) and the balance sheet is near net-cash with net debt down to Rs.92.60 Cr. Key watch items are management's own walk-down of margins to 13-14% post-December as cotton trading margins fade, and Acrylic Fibre's sequential PBIT relapse to Rs.5.45 Cr.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "in-line to ahead YoY… export-led yarn momentum likely held" | consol revenue +15.55% YoY | Played out |
| Margins | "flat to compressing sequentially off Q1's 18.11%" | on the same ex-other-income basis, 20.17% vs 18.10% — +207 bps QoQ expansion — favorably | Contradicted |
| Q2 vs prior year | management's May-2026 condition "substantially met on all three legs" | PAT-owners +90.89% YoY | Played out |
| Depreciation drag | "~Rs.126 Cr/quarter… known drag" | Rs.128.56 Cr, +12.64% YoY, +1.80% QoQ | Played out |
| Acrylic off break-even | "whether PBIT improves off break-even" | Rs.5.45 Cr: better YoY, weaker QoQ | Partially |
| Inventory gains, not squeeze | "plausibly converts to inventory gains" | materials ratio stable; gain quantum not disclosed | Partially |
| Spinning spread / duty-free import quantum / utilization ramp | watch items for the call | not addressed in the filing — remain open for the call | Not observable |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| EBITDA margin 13–14% "post-December" (H2 FY27) | management guidance, Q1 FY27 earnings call | Q2 FY27 company-basis margin 22.04% consol (21.00% Q1); H2 not yet testable | Too Early |
| Q2/Q3 FY27 to exceed prior-year levels if yarn prices, cotton costs and USD-INR persist | management commentary, Q4 FY26 earnings call (May 2026) | consol PAT-owners +90.89% YoY; EBITDA +64.67% YoY — Q2 leg | Met |
| Capex Rs.3,600 Cr program; only Rs.800–900 Cr into FY28 | MD commentary, Q1 FY27 earnings call | H1 FY27 cash capex Rs.527.81 Cr (consol) | On Track |
| "Q2 and Q3 (FY27) to exceed previous year's levels" if prices/currency persist | Q4 FY26 call (May 2026) | PBT +91.76% YoY, PAT +90.89% YoY, margin up on both axes | Confirmed |
| Demand recovery, FTA-led export optimism; April–May price gains to reflect in Q2 | Q1 FY27 call | Revenue +15.55% YoY / +6.01% QoQ; Textiles PBIT margin 17.42% | Confirmed |
| Trading margins "may not be available once we move to market prices of cotton" (H2 caution) | Q1 FY27 call | Q2 margin still expanded QoQ; materials ratio stable at 53.75% | Too Early |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.