VTL
Large CapVardhman Textiles Limited
Consumer
Vardhman Textiles Limited (VTL) is India's largest vertically integrated textile manufacturer with over 60 years of experience. It produces yarn, fabrics, garments, threads, fibres, and steels, serving a global footprint across 75+ countries. The company emphasizes consistency, reliability, flexibility, traceability, agility, and sustainability in its operations.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 2/8 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -0% YoY · PAT -21% YoY · margin expansion
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,498 Cr | -0.4% | -0.3% |
| EBITDA | ₹294 Cr | +2.4% | +3.5% |
| Operating margin | 12.0% | +100 bps | +100 bps |
| PAT | ₹189 Cr | -20.6% | +12.5% |
| PAT margin | 7.6% | -192 bps | +86 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
VTL reported a mixed Q4 FY26, with revenue slightly down YoY and QoQ. EBITDA and PAT saw significant YoY declines, reflecting margin pressure. Full-year FY26 revenue grew marginally, but profitability metrics (EBITDA, PAT) were lower than FY25, indicating a challenging operating environment despite capacity additions.
Despite ongoing capacity expansions and modernization efforts, VTL's profitability metrics (EBITDA, PAT, and their respective margins) declined significantly both YoY in Q4 FY26 and for the full FY26. The new capacities need to ramp up quickly and contribute meaningfully to offset the observed margin compression and justify the substantial capex.
Revenue by Product (FY26)
Latest issuer-disclosed distribution across 2 reported categories.
Yarn Capacity Expansion
improvingExpansion of about 15,600 spindles completed in H1 FY26; another 17,000 spindles completed. Open-end project to be started.
Processed Fabric Capacity Expansion
improvingCommercial production started for 31 million meters annually in March FY26.
Technical Textiles Unit
improvingVardhman Performance Fabric (Synthetic Woven) unit started commercial production of 18 million meters annually in March FY26.
Garment Capacity Expansion
improvingBoard approved expanding garment unit capacity from 2.2 million to 4.5 million shirts p.a. by end of FY2026-27 with Rs. 125 Cr investment.
Yarn Spindles
15,600 spindles completed in H1 FY26; 17,000 spindles completed. Open-end project to start.
Processed Fabric Line-4
Commercial production started for 31 million meters annually in March FY26.
Technical Textiles Unit
Commercial production started for 18 million meters annually in March FY26.
Garment Unit
Capacity to expand from 2.2 million to 4.5 million shirts p.a. by end of FY2026-27.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for understanding annual trends and the impact of seasonal demand in the textile sector. QoQ comparison is important for assessing sequential momentum, the immediate impact of new capacity commissioning, and short-term operational efficiency changes.
Revenue from Operations
Q4 FY26: Rs 2,441 Cr (-1% YoY, -0% QoQ). FY26: Rs 9,652 Cr (+1% YoY).
EBITDA Margin
deterioratingQ4 FY26: 14.1% (-171bps YoY, -9bps QoQ). FY26: 15.1% (-127bps YoY).
PAT Margin
deterioratingQ4 FY26: 7.1% (-175bps YoY, +42bps QoQ). FY26: 7.5% (-138bps YoY).
Yarn Production
improvingFY26: 277,072 MT (+4% YoY).
Sustainability Goals
Aim to achieve Net Zero Emissions by 2045, 30% reduction in freshwater consumption by 2030, and 60% green power generation by FY 2027-28.
Modernization & Technology Upgradation
Initiative largely completed, leading to improved operational efficiency and enhanced process capabilities.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin | Q4 FY26: 14.1% | Stabilization and improvement in margins as new capacities ramp up and contribute to economies of scale. |
| Yarn Production Growth | FY26: +4% YoY | Continued positive growth reflecting demand and effective utilization of expanded capacities. |
| Processed Fabric Production Ramp-up | New capacity of 31 MM p.a. started in March FY26 | Utilization rates and revenue contribution from the newly commissioned processed fabric capacity. |
| Garment Capacity Expansion Progress | Targeting 4.5 MM shirts p.a. by end of FY2026-27 | Timely completion of the garment unit expansion and its subsequent revenue generation. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
The Garment division's current capacity is intended to be doubled, taking about 8 months to complete once the project starts.
"We intend to make it to the double from the current capacity."
The figure of closed spindles could reach 15 million in the next 1 year, unless raw material prices are corrected.
"figure reaching to 15 million spindles in the next 1 year, unless the raw material prices are corrected, it can happen."
Industry margins will start improving if another 5 million to 7 million spindles get stopped in the country.
"if another 5 million, 7 million spindles gets stopped into the country, I think then...the margins will start improving."
Outcome check: OPM moved from 11.0% to average 12.0% (+1.0 pp).
Green power usage is in line to increase to about 49-50% of total demand in FY '27.
"in FY '27, we are in line to increase this to about 49%, 50%."
For performance wear, the company is targeting capacity utilization upwards of around 60% for the full next financial year.
"we are targeting capacity utilization upwards of around 60% for the full year."
Efforts to diversify into non-U.S. markets (EU, U.K., Australia, Canada) to mitigate tariff risk will bear fruit in time.
"we are confident that our efforts will bear fruit in time."
The fabric expansion at Budhni on existing cotton blend lines is expected to gain momentum from Quarter 1 next year.
"it is expected to gain momentum from Quarter 1 next year."
Vardhman Performance Fabrics, focused on performance wear, will start building scale from Quarter 1 of next financial year.
"We will start building scale from Quarter 1 of next financial year."
Outcome check: Revenue YoY averaged -0.4% across 1 later quarter(s).
Trend score and candlestick chart
54NeutralSMA20 +26.9% / mo · near 52W high
Technical chart
VTLdaily · 1Y+39.0%Technical trend read
Bullish setupTrend is constructive — long-term trend unclear. RSI 57.
- SMA20 rising (~3.1% over last month) — short-term momentum positive.
- RSI(14) at 57 — sideways, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 4% off 52W high · 59% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 46.5%.
- Balance sheet contributes 12/15 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Cash flow is weaker at 4/10; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Management has 50% delivered/partly-delivered outcomes on 2 checked claims, with 1 adverse claim outcome. It ranks around the 64th percentile of the scored universe and 63rd percentile within Consumer. Main check: results consistency is weak at 49/100.
Healthy Trust Lite: Promoter holding is 65.1%. Key concern: ROE is low at 7.3%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Consumer: 63rd pctile, median 67 · Large: 39th pctile, median 74
66 documents indexed, but claim history is not strong enough yet.
2/8 claims checked · 1 contradicted/failed claim
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 65.1%.
- ▸Promoter pledge is zero.
- ▸10 years of positive FCF.
- ▸OPM spread across recent quarters is 4%.
Trust risks
- ▸ROE is low at 7.3%.
- ▸0/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 24.10
- P/B
- 1.71
- EV/EBITDA
- 11.63
- Market Cap
- 17969.00Cr
Profitability
- ROE
- 7.30%
- ROCE
- 8.86%
- ROA
- 5.43%
- Dividend Y
- 0.81%
Growth (CAGR)
- Revenue 5Y
- 10.00%
- EPS 5Y
- 12.00%
- Revenue 3Y
- -1.00%
- EPS 3Y
- -2.00%
Balance Sheet
- Debt/Equity
- 0.18
- Interest Coverage
- 13.47×
- Altman Z
- 5.55
- Book Value
- 363.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 10/5
- OCF
- 1108.00 Cr
- EPS TTM
- 25.76
Shareholding
- Promoter Hold
- 65.09%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 90%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.