Vardhman Textiles has released the transcript of its earnings conference call pertaining to the third quarter of fiscal year 2026. The call, held on January 21, 2026, discussed the company’s performance amidst a challenging environment marked by cost volatility, demand disruptions, and global trade uncertainties. Key topics included capacity utilization, cotton price impacts, and strategic initiatives.
Financial Performance Overview
During the conference call, Vardhman Textiles reported its performance for Q3 FY26. The EBITDA margin for the quarter stood at approximately 15%, slightly lower than the 16% recorded in the previous quarter. On a year-to-date basis, the EBITDA margin was around 15% compared to 17% in the prior year.
Capacity Utilization
The company reported yarn utilization at around 95%, while fabric utilization reached approximately 89-90%. These figures reflect the utilization rates for cotton-based products, with the quarter being notably affected by elevated Indian cotton prices.
Impact of Cotton Prices
During Q3 FY26, cotton prices traded at about $0.75-$0.78 per pound, subsequently increasing to around $0.79 per pound in January 2026. This increase was largely attributed to an 8% rise in the Minimum Support Price (MSP), making Indian cotton structurally more expensive compared to global benchmarks. The Cotton Corporation of India (CCI) procured around 85 lakh bales out of the total arrivals of 175 lakh bales during the current cotton season.
Business Segment Performance
The yarn business experienced a mixed environment, with the first half of the year being relatively stable, while Q3 saw pressure due to tariff-related disruptions in garment exports and home textiles. Domestic demand for yarn remained soft, while exports showed selective improvement, particularly driven by specific product categories. The fabric business operated in a challenging external environment. However, the business delivered a resilient performance, supported by new product development, customer diversification, and operational execution.
Strategic Initiatives and Green Initiatives
A key strategic milestone was the commissioning of Vardhman Performance Fabrics, focused on performance wear. The company also reported that 9% of its total demand is met by green power, with plans to increase this to approximately 49-50% in FY27.
Source: BSE
