Vardhman Textiles Ltd(VTL)

NSE: VTLBSE: 502986

₹ 495-1.64%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 14,334 crWebsite: www.vardhman.comUpdated: 24 Oct 2026

About

Vardhman Textiles Ltd (VTL) is a vertically integrated Indian textile manufacturer producing cotton and synthetic yarn, woven fabric, technical textiles and garments, with operations across Punjab, Himachal Pradesh and Madhya Pradesh. The company operates India's largest spindle base of over 1.25 million spindles across 13 manufacturing plants and reported revenue of ₹9,652 crore from its Textiles segment in FY26. It serves customers in over 60 countries, with exports contributing more than two-fifths of turnover.^[1]

Business segments

Textiles segment revenue was ₹9,652.33 crore in FY26, 96.8% of total, with EBIT of ₹1,007.87 crore; its share rose 2.4 percentage points over FY2019-FY2026.^[2]
Acrylic Fibre segment (Vardhman Acrylics Ltd, 70.74%-owned subsidiary) contributed ₹318.57 crore in revenue (3.2% of total) with EBIT of ₹18.4 crore (5.8% margin) in FY26.^[2]
Within the Textiles segment, yarn accounted for 65% of Q1 FY27 revenue and fabric 35%, up from 31% fabric share in FY26.^[3]

Products

Yarn portfolio covers greige and dyed yarns in cotton, polyester, acrylic and blends, plus speciality variants: organic cotton, melange, core-spun, gassed mercerised and super-fine.^[1]
Fabric portfolio comprises woven fabrics for shirting and trousering; finished garments for premium international brands; and technical textiles focused on synthetic functional fabrics such as windcheaters and rain gear.^[1]
The technical textiles plant (18 million metres a year; Phase I about 1.5 million metres a month) started commercial production in March 2026.^[1]

Manufacturing capacity and utilisation

Installed spinning capacity is approximately 1.25 million spindles across plants in Punjab, Himachal Pradesh and Madhya Pradesh; spinning utilisation was 94% in FY26.^[1]
About 35,000 spindles were added during FY26 under a modernisation programme of around ₹1,200 crore in spinning and fabric.^[1]
Fabric processing capacity is about 240 million metres a year after the ₹350 crore Budhni expansion added 31 million metres a year (commercial production March 2026); loom count is 1,550.^[1]
Garment manufacturing capacity is 2.20 million shirts per annum; a printing line capacity of 25 million metres per annum is also operated.^[1]
The synthetic fabric unit ran at only 15 - 20% utilisation in Q1 FY27 after its March 2026 start; cotton fabric utilisation was ~89 - 90% in Q3 FY26.^[3]
The company operates 4 R&D facilities with R&D investment of ₹5.93 crore; manufacturing is certified to ISO 9001, ISO 14001 and ISO 45001.^[1]

Key operating numbers

Yarn production was 70,046 MT in Q1 FY27 (+2.0% YoY) and 2,77,072 MT in FY26 (+4% YoY).^[3]
Processed fabric production was 408 lakh metres in Q1 FY27 (-0.5% YoY) and 1,646 lakh metres in FY26 (-3% YoY).^[3]
Cotton yarn spread was approximately USD 0.90/kg in Q1 FY27, up from an FY26 average of approximately USD 0.65/kg.^[3]
30s Combed yarn export price was USD 3.20 - 3.30/kg in Q1 FY27.^[3]
India's total yarn exports rose to approximately 110 million kg/month by Q1 FY27, from approximately 95 - 97 million kg/month previously, driven mainly by Chinese demand.^[3]
The FY26 annual report names the gap between domestic and international cotton prices (11% cotton import duty, MSP) as a risk to spinning margins.^[1]

Customers and distribution

Vardhman serves customers across 60-plus countries; export markets include China, the UK, Europe, Japan, South America, Australia and Bangladesh.^[1]
Exports were 44% of revenue in FY26 and 47% in Q1 FY27; the US has historically been a significant fabric export destination.^[4]
The company is diversifying fabric customers toward the EU, UK, Australia, Canada, Bangladesh and Sri Lanka to reduce US concentration.^[5]

Expansion and capex

Capex programme of about ₹3,660 crore covers spinning, fabrics, technical textiles, garments and green energy; approximately ₹800 - 900 crore is expected to spill into FY28.^[1][3]
Garment capacity expansion from 2.2 million to 4.5 million shirts per annum, at about ₹125 crore, is targeted for completion in FY27.^[1][4]
A new open-end spinning project of approximately 55 - 60 tonnes/day began construction in late July 2026 and is expected to be operational in approximately 10 months.^[3]
Green power target is 60% by FY2027-28, with solar being scaled toward 70 MWp.^[1]
Biomass boiler at Baddi was commissioned in late July 2026; the Madhya Pradesh biomass unit was expected about a month later; all power projects targeted for completion by October 2026.^[3]
PM MITRA Park (Dhar, MP): land delivery expected by December 2026; construction to start only once power is confirmed, not before June 2027, with spinning as the first project.^[3]
The synthetic fabric unit received two large brand approvals in August 2026; management targets 70 - 80% utilisation within 6 months from August 2026.^[3]

Recent developments

On 05 October 2026, VTL executed agreements to acquire a minimum 26% stake in Serentica Renewables India 32 Private Limited for ₹41.85 crore for a 27 MW wind-solar hybrid project in Himachal Pradesh.^[6]
CRISIL reaffirmed VTL's AA+/Stable rating as of FY26; debt-to-equity was about 0.2 times.^[1]
US tariffs hurt fabric in the first half of FY26 and their removal helped the second half; the tariff disruption caused a missed seasonal sampling round in Q1 FY27, with recovery expected over 2 - 3 months from August 2026.^[1][3]

Market Cap

₹14,334 Cr

High / Low

₹688 / 392

Stock P/E

16.9

Price / Book

1.4

Book Value

₹363

EPS

₹25.8

No. of Shares

28.93 Cr

ROCE

8.9%

ROE

7.3%

OPM

9.9%

Debt / Equity

0.18

Sales

₹9,869 Cr

Net Profit

₹753 Cr

Promoter holding

65.1%

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Vardhman Textiles Ltd(VTL)

About

Business segments

Products

Manufacturing capacity and utilisation

Key operating numbers

Customers and distribution

Expansion and capex

Recent developments

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