In the textile sector, the company making the biggest headlines today is Vardhman Textiles Limited. The industry giant surprised the market by announcing a massive ₹3,535 crore capex plan, triggering an 11% rally in the stock, which jumped to ₹454.24. Here’s the complete picture behind this strong growth story.
Company Overview
Vardhman Textiles is one of India’s largest integrated textile manufacturers. Its operations span yarn, fabric, acrylic fibre, and garment production, with a strong global presence.
Market Capitalization: ₹12,502 crore
Share Price (as of 26 October): ₹437.40
Day Gain: +11%
Why Did Textile Stocks Surge Suddenly?
Almost all textile stocks rallied today. The key reason was positive signals from the ongoing India–US trade negotiations. Expectations are rising that a bilateral agreement may reduce tariffs on Indian textile exports to the US.
US President Donald Trump stated that his discussions with Prime Minister Narendra Modi were “productive” and that a deal could be finalized soon. This boosted investor sentiment, especially in textile-related counters.
Q2 FY26 Results
Metric | Q1 FY26 | Q2 FY26 | QoQ Change | Q2 FY25 | YoY Change
Sales (₹ crore) | 2,386 | 2,480 | +4% | 2,502 | -1%
EBITDA (₹ crore) | 326 | 334 | +2% | 315 | +6%
Net Profit (₹ crore) | 208 | 188 | -10% | 197 | -5%
EPS (₹) | 7.16 | 6.47 | -9.6% | 6.81 | -5%
EBITDA margin improved to 13.5%, compared to 12.6% last year, indicating better operational efficiency, although net profit saw a slight decline.
Revenue Mix
Source-wise:
Yarn: 66%
Fabric: 34%
Geography-wise:
Domestic Market: 55%
Export Market: 45%
The company maintains a balanced revenue base, supported by both strong local demand and significant global exposure.
₹3,535 Crore Capex Expansion Plan
Vardhman’s major capex announcement is set to accelerate its growth engine over the next two years.
Key Projects:
Yarn Capacity Expansion:
17,000 spindles already completed; a new project of 6,624 rotors to be initiated soon.
Processed Fabric Capacity:
An additional 3.1 crore meters annually, targeted for completion by H2 FY26.
Vardhman Performance Fabric (Synthetic Woven):
1.8 crore meters of new capacity, also expected by H2 FY26.
Modernisation and Automation:
Upgrades progressing in phases, to be completed by H2 FY26.
Green Capex Initiatives:
Scheduled for completion by FY27.
The company is investing simultaneously in technology and sustainability, strengthening long-term competitiveness.
What Lies Ahead?
Despite a slight dip in quarterly profit, Vardhman’s consistent margin improvement and large-scale capex investments highlight its ambition to expand production capacity and increase export contribution.
Operational momentum and improving global textile sentiment indicate a supportive environment for the company in the coming quarters.
