Q1 2026 Vardhman Textiles Ltd Earnings Call Transcript
Key Points
- Vardhman Textiles Ltd (BOM:502986) reported operational performance slightly better than the previous quarter, excluding extraordinary items.
- The company maintained healthy capacity utilization due to its diversified geographic exposure, with stable markets in the UK, EU, Japan, South America, Egypt, Australia, and India.
- Yarn and fabric sales remained broadly in line with the corresponding quarter last year, despite global headwinds.
- Significant investments are being made in spinning and fabric, with fabric expansion progressing as per schedule and expected to contribute meaningfully from quarter three onwards.
- The capacity expansion in the mechanical recycling plant, ReNova, and the expanded capacity of 14,000 spindles in Melange yarn are now operational.
- Indian cotton is trading at a premium to international cotton, with prices further increasing due to a higher minimum support price (MSP), making Indian cotton among the most expensive globally.
- Indian mills face an 11% import duty on cotton, putting them at a disadvantage compared to competitors like Bangladesh and Vietnam.
- The imposition of new US tariffs on textile imports has led to volatility and confusion, causing a slowdown in new order placements from the US market.
- The company's margins are under pressure due to rising cotton prices in India, and unless yarn prices improve, margins may not sustain.
- The future order position is slightly lower due to uncertainty in trade tariffs, with brands adopting a cautious approach.
Ladies and gentlemen, good day, and welcome to the Vardhman Textiles Limited Q1 FY26 post results earnings conference call hosted by Batlivala & Karani Securities India Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Roshan Nair from Batlivala & Karani Securities India Private Limited. Thank you, and over to you, sir.
(technical difficulty) and Mr. Varun Malhotra, Head of Finance.
Without further ado, I would like to hand over the floor to Mr. Neeraj Jain and Ms. Sagrika Jain for their opening remarks, post which we can have a Q&A session. Thank you, and over to you, sir.
Good afternoon, everyone. Welcome to the quarter one earnings call of Vardhman Textiles. We have declared the results for this quarter, and I'm pleased to share with you that the operational performance
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
