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Vardhman Textiles Profit Drops Amid Margin Pressure
21 Jan
Summary
- Net profit declined 21.3% year-on-year in Q3 FY26.
- Revenue grew modestly by 1.6% to ₹2,505 crore in Q3 FY26.
- EBITDA margin compressed to 11.32% in the recent quarter.
Vardhman Textiles announced its financial results for the October-December quarter of FY26, revealing that both profit and margins faced significant pressure.
In Q3 FY26, the company's net profit saw a 21.3% year-on-year decrease, settling at ₹166 crore compared to ₹211 crore in the same period last year. This decline was primarily due to weaker operating profitability, with EBITDA falling by 9.4% to ₹283.5 crore from ₹313 crore.
Despite these profit challenges, revenue from operations demonstrated resilience, inching up by 1.6% year-on-year to ₹2,505 crore from ₹2,465 crore. This indicates steady demand, even within a difficult pricing environment.
The compressed profitability is further highlighted by a narrowing EBITDA margin, which fell to 11.32% from 12.70% in the corresponding quarter of the previous year. Earlier, in Q2 FY26, Vardhman Textiles had also reported a 5% dip in net profit.
Following the Q3 results announcement on Wednesday, January 21, Vardhman Textiles' shares closed 1.70% lower at ₹396. The stock has experienced an 11.85% decline over the past month.
