Vardhman Hold. Q1 FY27 Results (NSE: VHL)
Signal: Earnings grew
The read
Consolidated PAT of ₹98.08 Cr (+57% YoY) is driven almost entirely by associate profit (₹89.75 Cr, +50%) and fair value gains (₹10.61 Cr). Standalone PAT is just ₹8.33 Cr. The operating margin (standalone) improved to 93.4% from 91.7% YoY. The jump in EPS to ₹307.27 is the highest in recent quarters, but earnings quality is tied to volatile fair value changes and associate performance.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹10.83 Cr | 217.6% | 3181.8% |
| Net profit | ₹98.08 Cr | 56.7% | |
| EPS | ₹307.27 | 56.7% | |
| EBIT margin | N/A |
P&L walk
Consolidated PAT heavily reliant on associate contribution; standalone OPM improved but base is tiny.
Key positives
- Consolidated PAT up 57% YoY to ₹98.08 Cr, highest in at least 5 quarters.
- Share of associates profit surged 50% YoY, indicating strong underlying business at Vardhman Textiles.
- Fair value gains jumped to ₹10.61 Cr from ₹3.25 Cr YoY, boosting revenue.
- Operating margin improved 170bps YoY to 93.4% as total income outpaced expenses.
Key concerns
- 91% of consolidated PAT comes from two associates, creating concentration risk.
- Revenue is volatile due to fair value changes on investments; operating income can swing sharply.
- Standalone revenue of ₹10.83 Cr is tiny relative to market cap; the company's value lies in its holdings.
- Dividend income was negligible (₹0.01 Cr) vs ₹45.14 Cr in full year FY26 (standalone) – likely seasonal.
Research and educational content only. Not investment advice.