Vardhman Textiles Limited has released the transcript of its Q1 FY27 earnings conference call, held on July 31, 2026. The discussion highlights improvements in the spinning business with better yarn sizes and partial gains from raw material price adjustments. While the fabric side saw slower growth, it is expected to improve. The company also provided insights into raw material price trends and future growth prospects.
Vardhman Textiles Q1 FY27 Earnings Conference Call Transcript Released
Vardhman Textiles Limited shared the transcript of its earnings conference call for the first quarter of Fiscal Year 2027 (Q1 FY27), which took place on July 31, 2026. The call provided an in-depth look at the company’s financial performance and operational strategies during the quarter.
Performance Highlights and Business Segments
Mr. Neeraj Jain, Managing Director, noted improvements in the company’s financial results. He highlighted positive developments in the spinning business, citing enhancements in yarn sizes and a partial trading gain derived from raw material price adjustments aligning with increased yarn prices. While the fabric business showed improvement, it was somewhat constrained by earlier U.S. tariff issues and missed sampling seasons. However, the company anticipates a stronger performance in the fabric segment over the next 2-3 months, with U.S. orders showing signs of recovery.
Outlook on Raw Materials and Market Trends
The management discussed the stabilization of raw material prices, particularly cotton, which is trading in the range of approximately USD0.78 to USD0.81 per pound. Despite uncertainties like global events and varying rain patterns affecting crop yields in key regions like Brazil and Australia, the company foresees cotton prices remaining firm or potentially increasing due to rising global consumption. The impact of geopolitical events on crude oil prices, subsequently affecting polyester and acrylic prices, was also noted as a factor influencing fiber costs.
Capacity Expansion and Future Growth
Vardhman Textiles is actively working on capacity expansion and modernization. The company has started a biomass boiler in Baddi and anticipates another one in Madhya Pradesh soon. The open-end project with a capacity of about 55-60 tons per day has commenced construction. Future growth strategies include leveraging unutilized capacity in the fabric segment and exploring new projects, potentially on a new piece of land acquired under the PM MITRA Park initiative, aiming for top-line growth over the next 3-5 years.
Customer Demand and Market Dynamics
The company observes a decent demand trend in both domestic and export markets, particularly benefiting from Free Trade Agreements (FTAs) with the U.K. and EU. The management noted a shift towards shorter ordering cycles and cautious inventory management by customers, emphasizing the need for efficient delivery to maintain competitiveness. Innovations in new products, recycled materials, and sustainable practices are increasingly appreciated by customers, with a growing focus on compliances and ESG factors.
Source: BSE
