Vardhman Textiles Ltd (VTL) Q1 FY27 Results Analysis: EBITDA Margin Expands 395 bps, Revenue Grows 13.3%

Vardhman Textiles Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 2,703.08 Cr (+13.30% YoY) and PAT growth of +51.50% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Vardhman Textiles reported strong Q1 results with 13.3% revenue growth and 395 bps EBITDA margin expansion, driven by favorable cotton spreads and weak rupee. The Acrylic Fibre segment turned profitable, and the modernisation programme is on track. Depreciation is a near-term headwind, but the company is well-positioned for a strong FY27.

Key Investment Insights

Key Positives

• Revenue grew 13.3% YoY to Rs.2,703.08 Cr, driven by strong export yarn demand.
• EBITDA margin expanded 395 bps YoY to 18.11%, the highest in four quarters.
• PAT grew 51.5% YoY to Rs.314.56 Cr, EPS grew 49.5% YoY to Rs.10.88.
• Cost of materials ratio improved 407 bps YoY to 53.66%, driven by cotton spread improvement and weaker rupee.
• Acrylic Fibre segment swung from a Rs.0.86 Cr loss to a Rs.17.60 Cr profit, a turnaround.
• Textiles segment PBIT margin expanded 356 bps YoY to 16.40%.

Risk Factors

• Depreciation rose 15.4% YoY to Rs.126.29 Cr, a headwind as the modernisation programme capitalises, creating a ~Rs.15-20 Cr quarterly drag vs FY26 levels.
• Acrylic Fibre segment revenue declined 6.3% QoQ, though profitability improved significantly.