Vardhman Textiles Faces Margin Heat as Q3 FY26 Profits Slide
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Vardhman Textiles Ltd reported a subdued performance in the October to December quarter of FY26, as rising costs and pricing challenges weighed on profitability. The company posted a 21.3 percent year on year decline in net profit, which fell to Rs 166 crore compared with Rs 211 crore in the same quarter last year. The drop reflects persistent margin pressure across the textile value chain, even as demand conditions remained relatively steady. For an industry navigating volatile raw material prices and cautious global buying sentiment, the quarter highlighted the difficulty of protecting earnings.
While profits weakened, revenue performance offered some stability. Revenue from operations rose marginally by 1.6 percent year on year to Rs 2,505 crore, indicating that order flows remained intact. However, operating profitability told a more restrained story. EBITDA declined 9.4 percent to Rs 283.5 crore, as higher input costs and limited pricing flexibility eroded margins. As a result, the EBITDA margin narrowed to 11.32 percent from 12.70 percent a year earlier. Key performance signals during the quarter included
• Modest revenue growth amid stable demand
• Higher raw material and operating costs
• Reduced operating leverage impacting margins
These trends underline the broader challenges faced by Textile manufacturers in balancing cost inflation with competitive pricing.
Navigating a Challenging Textile Landscape
As part of the Vardhman Group, one of India largest integrated textile players, Vardhman Textiles operates across yarns, fabrics, sewing threads and fibres, serving both domestic and global markets. The Q3 performance suggests that while scale and diversification continue to support revenues, margin protection remains a critical concern. Industry observers note that cost efficiency, product mix optimisation and demand recovery in key export markets will be central to restoring profitability momentum. As the textile sector adjusts to global uncertainty and cost volatility, Vardhman performance reflects a phase of consolidation rather than contraction, with stability in volumes but pressure on earnings defining the current cycle.
04:42 PM, Jan 22
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