Vardhman Textiles posts 51 per cent jump in Q1 profit

MUMBAI: Vardhman Textiles has stitched together a strong start to FY27, with profits weaving a much faster story than revenue. The textile major reported a sharp rise in quarterly earnings as healthier operating margins and improved profitability in its core textile business outweighed a modest increase in costs.

For the quarter ended 30 June 2026, revenue from operations rose 13.3 per cent year on year to Rs 2,703.08 crore, compared with Rs 2,385.66 crore in the corresponding quarter last year.

Including other income of Rs 78.06 crore, total income increased to Rs 2,781.14 crore, up from Rs 2,455.96 crore a year earlier.

The company reported profit before tax of Rs 418.07 crore, a jump of 51.4 per cent from Rs 276.11 crore in the first quarter of FY26. After providing Rs 103.51 crore towards taxes, net profit climbed 51.5 per cent to Rs 314.56 crore, compared with Rs 207.68 crore in the year-ago period.

Profit attributable to the company’s shareholders stood at Rs 309.83 crore, up from Rs 207.17 crore a year earlier, while basic earnings per share increased to Rs 10.88 from Rs 7.28.

The company reported total comprehensive income of Rs 312.32 crore, compared with Rs 207.66 crore in the corresponding quarter last year.

Operating expenses rose in line with higher business activity. Total expenses increased to Rs 2,378.90 crore from Rs 2,191.91 crore a year ago.

The cost of materials consumed, the company’s largest expense, rose to Rs 1,450.36 crore from Rs 1,377.35 crore, while employee benefit expenses edged up to Rs 226.77 crore from Rs 221.93 crore. Depreciation and amortisation also increased to Rs 126.29 crore, compared with Rs 109.42 crore in the corresponding quarter last year.

The textiles business, which remains Vardhman’s largest segment, generated Rs 2,648.18 crore in revenue, up from Rs 2,342.32 crore a year earlier. Segment profit before interest and tax improved significantly to Rs 434.36 crore from Rs 300.68 crore, indicating stronger operating margins.

The acrylic fibre business also returned to profitability, posting segment earnings of Rs 17.60 crore, compared with a loss of Rs 0.86 crore in the year-ago quarter, while revenue increased to Rs 78.25 crore from Rs 69.38 crore.

Vardhman also benefited from a higher share of profit from associates, which rose to Rs 15.83 crore from Rs 12.06 crore a year earlier.

The latest results suggest Vardhman Textiles has entered FY27 with improving operational momentum. While revenue growth remained steady, stronger margins across its core textile business and a turnaround in acrylic fibre helped profits grow at a much faster pace, signalling a healthier earnings profile despite a challenging global textile environment.