Vardhman Textiles Ltd (NSE:VTL)

Q3 2026 Vardhman Textiles Ltd Earnings Call Transcript

Jan 21, 2026 / 10:30 AM GMT

Release Date Price: ₹402.95 (+0.02%)

Transcript

Key Points

Positve

Vardhman Textiles Ltd (BOM:502986) maintained a stable EBITDA margin of around 15% despite cost volatility and demand disruptions.
Yarn utilization was high at approximately 95%, indicating efficient use of resources.
The company has commissioned new performance fabrics focused on performance wear, expected to scale from Q1 of the next financial year.
Vardhman Textiles Ltd (BOM:502986) is diversifying its market presence beyond the US to mitigate tariff risks, focusing on regions like the EU, UK, Australia, and Canada.
The company is making significant strides in green initiatives, aiming to increase green power usage from 9% to about 49-50% by FY27.

Negative

The company faced pressure on margins due to elevated Indian cotton prices, which are structurally more expensive compared to global benchmarks.
The reinstatement of an 11% import duty on cotton from January 1, 2026, places the company at a disadvantage compared to competitors in countries like Bangladesh and Vietnam.
The fabric business experienced a challenging environment with increased competitive intensity and elongated decision cycles due to unresolved tariff wars.
Domestic demand for yarn remained soft, and while exports showed selective improvement, it was not enough to offset the high cotton costs.
The company anticipates further capacity closures in the yarn industry due to high costs and outdated technology, potentially leading to more spindles being shut down.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

VART.NS - Vardhman Textiles Ltd
Q3 2026 Vardhman Textiles Ltd Earnings Call
Jan 21, 2026 / 10:30AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to Varman Textiles Q3 FY26 earnings conference call hosted by Bhatliwala and Karani Securities India Private Limited. As a reminder, all participants' line will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing, then 0 on your touchstone phone. Please note that this conference is being recorded.

I now hand the conference over to Miss Aradna Jane from Baliwala and Karani Securities India Private Limited.

Thank you and over to you, ma'am.

Thank you, Ira.

Good evening everyone. On behalf of BNK

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