Vardhman Textile Q1 FY27 Results & Concall Highlights: Revenue, Margins & Order Book
Published 25 Aug 2026 | Textiles & Apparels | Market Cap: ₹17.5K Cr
Capacity expansion at Dhar's PM MITRA Park is planned in the next 3-5 years, intending to drive top-line growth. Company expects reasonable improvement in return on capital employed (ROCE) over 5 years, targeting 13-14% levels from current lower levels.
From Vardhman Textile's Q1 FY27 earnings-call transcript · updated 25 Aug 2026.
Price
₹606
Market Cap
₹17.5K Cr
P/E Ratio
20.6
Revenue Rank
Margin Rank
How does Vardhman Textile rank in Textiles & Apparels?
Compare Vardhman Textile against every Textiles & Apparels company this quarter on revenue, margins and earnings-call signals.
Vardhman Textile — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹2.5K Cr, net profit ₹189 Cr.
Full financials →📊 Revenue & Sales Performance
Rank 3- →Capacity expansion at Dhar's PM MITRA Park is planned in the next 3-5 years, intending to drive top-line growth. (Page 10)
- →New capex includes modernization and power projects, with some on-line now and more completing within 2026-27, which will enhance production capacity marginally (additional 50-55 tons open end). (Page 10)
- →Garmenting capacity is being doubled from 2.2 million to 4.5 million shirts, expected to be fully operational by June 2027, with peak revenue potential around INR 300 crores. (Page 12)
- →The synthetic fabric business is starting to gain traction, targeting 70-80% capacity utilization in next 6 months from current 15-20%. (Page 7)
- →Strong export demand is visible with India benefiting from FTAs with UK and EU, expected to boost sales in the next 2 years. (Page 10)
- →China and Bangladesh account for 60% of yarn exports from India, and demand here is expected to continue growing. (Page 13)
📈 Profitability & Margins
Rank 3- →Company expects reasonable improvement in return on capital employed (ROCE) over 5 years, targeting 13-14% levels from current lower levels.
- →Top-line growth is anticipated through capacity expansion, especially in fabric and garment segments, and leveraging new projects in Dhar (PM MITRA Park).
- →New capex focusing on modernization and power will mostly complete in FY27, with some remaining work into FY28.
- →Demand visibility remains positive for next 3-4 months in yarn sales, largely supported by China and Bangladesh.
- →New garment capacity doubling from 2.2 million to 4.5 million shirts aims to enhance margin and asset turnover.
- →Innovation and niche products, along with eco-friendly and compliance advantages, position the company well for growth.
- →Company is evaluating cotton import opportunities to manage raw material costs and margins.
- →Margins expected to moderate post Q2 but likely to remain above the lows seen in the last 2-3 years, supported by sustained demand and cost management.
🏗️ Capital Expenditure Plans
Yes- →Total announced capex is INR 3,600 crores, with around INR 800-900 crores allocated for FY27; remaining to be completed this year.
- →Majority of capex is for modernization and power projects including biomass boilers and renewable energy investments (solar, wind).
- →Open-end spinning project with ~55-60 tons/day capacity construction started recently, expected to be ready in about 10 months.
- →Dhar PM MITRA Park project capex is currently under consideration; construction to start only after power availability is confirmed (expected post June 2027).
- →New synthetic fabric business capacity of 15 lakh meters/month started in Feb-Mar, presently at 15-20% utilization with plans to reach 70-80% utilization within 6 months.
- →Future expansion at Dhar planned post land and power availability, with initial focus on spinning capacity and subsequent addition of other products.
💰 Fundraising & Capital Structure
No information- →There is no mention of any current or planned fundraising through debt or equity in the provided sections of the transcript.
- →The company is holding investments as future expansion possibilities with available money but will invest in bigger projects only when the right opportunity arises.
- →The large capex plans (INR 3,600 crores) mostly pertain to ongoing modernization and power projects, with no indication of raising new funds through debt or equity for these.
- →The Dhar PM MITRA Park project is still under consideration, awaiting land and power availability; no fundraising for this project is disclosed yet.
- →Overall, the company appears to be funding expansion primarily through internal accruals and existing resources at this point.
📋 Order Book & Pipeline
No information- →Export market order book is typically sold for about 90-95 days (approx. 3 months).
- →Domestic market order book stays around 45-50 days.
- →Current order book situation in spinning segment aligns with these averages.
- →Bulk of price improvements in April-May expected to reflect in Q2 sales.
- →Yarn demand and sales visibility looks stable for the next 3 to 4 months.
- →New garment capacity expansion (doubling from 2.2 million to 4.5 million shirts) is underway with customers secured; full utilization expected roughly one year from now.
- →Fabric side is seeing better order flow; passing on yarn price increases to customers is ongoing with around 60-70% passed on.
- →New synthetic fabric segment is early stages but recently secured two big brand approvals; capacity utilization rising from 15-20% aiming for 70-80% in next 6 months.
Key Metrics
Revenue
Margin
Capex
Fundraise
Order Book
Frequently Asked Questions
What were Vardhman Textile Q1 FY27 results?
Capacity expansion at Dhar's PM MITRA Park is planned in the next 3-5 years, intending to drive top-line growth. Company expects reasonable improvement in return on capital employed (ROCE) over 5 years, targeting 13-14% levels from current lower levels.
What is Vardhman Textile share price analysis?
Vardhman Textile currently shows a below-average growth signal. The stock trades at a P/E of 20.6 with a market cap of ₹17,452 Cr. Investors should review the full earnings analysis for detailed insights.
Is Vardhman Textile planning capital expenditure?
Total announced capex is INR 3,600 crores, with around INR 800-900 crores allocated for FY27; remaining to be completed this year.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.