Vardhman Textiles Q2 Results: Net Profit Falls 14% YoY to ₹189 Crore; Revenue Down 2% Amid Challenging Market

Vardhman Textiles Limited—one of the major vertical textile player in India— has aconsolidated net profit got down a little over 14 percent year-on-year( YoY) for the second quarter of FY26. The profit of the company was ₹189 crore as against ₹220 crore during the corresponding quarter of the previous year, while the revenue from operations also fall 2% YoY to ₹2,417 crore from ₹2,455 crore.

The YoY performance was muted, but revenue increased sequentially by 3% from ₹2,342 crore in Q1 FY26, and this can be taken as a sign that the demand is slowly stabilizing.

Financial Performance Snapshot

The income for the company was ₹2,468 crore for the quarter ended September 30, 2025, as per its filing with the exchanges, which is a 4% decrease compared to the previous year when it was ₹2,565 crore.

The EBITDA for the company comes down by 10% YoY to ₹383 crore from ₹425 crore in Q2 FY25, and the contraction in EBITDA margin is 110 basis points, decreased to 15.5% from 16.6% a year ago.

The net profit margin of the company went down to 7.7%, a decrease of 90 basis points from 8.6% in the previous year. The EPS has also come down to ₹6.55 as against ₹7.59 during the same quarter of FY25.

Capex and Expansion Plans

Vardhman Textiles is keeping on with its ambitious expansion plan to make the most of its production capacity. A total capex of ₹3,535 crore is allotted by the company; yarn production will be the major project and processed fabric capacity the minor one.

The company added the 15,600 spindles in the first half of FY26 while the 17,000 spindles were added recently. Moreover, the open-end spinning project with 6,624 rotors has started and is expected to be done shortly. The companies plan to upgrade their productivity and overall efficiency in the coming periods of time through these projects.

Sustainability Goals and Future Outlook

Vardhman Textiles has also made a strong point about sustainability in line with its long-term growth plan. The company has set 2045 as the year for totally net zero emissions and FY2050 as a period of net positive environmental impact for the company. Among other goals, it has set 2030 for cutting landfill waste by half and FY2026 for sourcing 40% of its power requirements from renewable energy sources.

Vardhman has a global presence that is well-diversified through exports to over 75 countries. The company's revenue mix remains balanced - 45% from exports and 55% from domestic markets. The company's diverse product portfolio includes yarn, fabrics, garments, threads, fibers, and steels, catering to various industries all across the world.