Vardhman Textile Q1 FY27 Results (NSE: VTL)
Signal: Margin expansion
The read
VTL delivered a standout quarter: revenue +13.3% YoY to ₹2,703 Cr and attributable PAT +49.6% to ₹309.83 Cr, powered by a 5th consecutive quarter of gross margin expansion (raw material cost % fell 410bps YoY) and operating leverage (employee cost grew only +2.1% YoY). The textile segment's OPM rose ~170bps YoY; the acrylic fibre subsidiary swung to profit. Associates added ₹15.83 Cr (+31% YoY). EPS of ₹10.88 is a 5-quarter high. The YoY PAT growth decelerated from +49.6% vs prior Q4's +75% but remains strong on a higher base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,703.08 Cr | 13.3% | 8.2% |
| EBIT | ₹452 Cr | 50.7% | |
| Net profit | ₹314.56 Cr | 51.5% | |
| EPS | ₹10.88 | 49.5% | |
| EBIT margin | 16.7% |
P&L walk
Revenue grew +13.3% YoY, but gross margin expanded 410bps as raw material cost % declined sharply; EBITDA margin (OPM) rose 134bps YoY to 16.7%, aided by operating leverage (fixed costs grew slower than revenue) and strong textile segment PBIT jump of 44.5% YoY. PAT attributable to owners surged +49.6% YoY, boosted by lower finance costs and higher associate income.
Segments
The textiles segment (yarns & fabrics) drove the consolidated result: PBIT surged +44.5% YoY to ₹434.36 Cr, while acrylic fibre turned from a loss of ₹0.86 Cr in Q1FY26 to a profit of ₹17.60 Cr, contributing a meaningful swing.
Key positives
- 5th consecutive quarter of gross margin expansion (>150bps YoY) — raw material cost % fell 410bps YoY to 53.6%
- Operating leverage: employee cost grew only +2.1% YoY vs revenue +13.3% — 11.2pp gap
- Textile segment PBIT +44.5% YoY; acrylic fibre segment turned profitable (₹17.60 Cr vs loss of ₹0.86 Cr)
- Associate income +31.3% YoY to ₹15.83 Cr
- EPS of ₹10.88 — highest in 5 quarters
Key concerns
- QoQ revenue growth decelerated from +5.8% in Q3FY26 to +3.3% in Q1FY26 (standalone) and +8.2% consolidated — but Q1 is seasonally lower
- PAT attributable to owners grew +49.6% YoY, but decelerated from Q4FY26's +74.8% standalone (consolidated +49.6% vs prior +49.6% same quarter — base effect)
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