Vardhman Textiles Reports Strong Q2FY27 Performance with 92% Jump in PAT

New Delhi: Vardhman Textiles has reported a robust financial performance for the second quarter of fiscal year 2027, supported by improved demand, higher realisations, and favourable operating conditions in its core spinning business.

For the quarter ending September, the company's standalone revenue from operations increased by 15.6 per cent year-on-year to ₹2,793 crore. Growth was mirrored across profitability metrics, with EBITDA rising 65.8 per cent to ₹635 crore.

The company's EBITDA margin expanded significantly by 657 basis points to reach 22.1 per cent. This margin expansion reflected improved yarn realisations, operational efficiencies, benefits from lower-cost cotton inventory, and ongoing renewable energy initiatives.

Supported by stronger operating profitability, Profit After Tax (PAT) registered a sharp increase of 92.3 per cent year-on-year to ₹364 crore.

On a sequential basis, Vardhman Textiles recorded a 5.5 per cent growth in revenue. Meanwhile, EBITDA and PAT grew by 20.3 per cent and 27.7 per cent respectively compared to the previous quarter. For the first half of FY27 (H1FY27), total revenue reached ₹5,441 crore, marking a 14.3 per cent growth, while EBITDA rose 49.1 per cent to ₹1,163 crore, indicating a substantial overall improvement in operating performance.

Market analysts note that the strong Q2 performance reinforces an earnings recovery led by resilient yarn profitability and improved operating efficiencies.

Looking ahead, growth is expected to be driven by higher utilisation of recently commissioned capacities, a recovery in fabric volumes, the ramp-up of the performance fabric business, and expansion in garmenting. However, near-term fabric margins and the sustainability of inventory-led gains remain key factors to monitor, although the company maintains a healthy balance sheet that provides execution flexibility.

Analysts have maintained a 'BUY' rating on the stock with a target price of ₹726, valued at 11x FY28E EPS.

"Vardhman Textiles' Q2FY27 results demonstrate how operational efficiencies and favorable raw material costs can significantly bolster the bottom line, even in traditional manufacturing sectors. A 92 percent jump in PAT alongside a substantial margin expansion highlights strong execution capabilities. For businesses across sectors, maintaining a healthy balance sheet while scaling recently commissioned capacities is vital for sustaining long-term growth and retaining investor confidence." — Dr. Shishir Gupta, Founder & CEO, StartupLanes