Vardhman Textiles Ltd — earnings calls

Vardhman Textiles reported an improvement in Q1 FY27 results in both percentage and absolute terms, driven by better yarn sizes and a partial trading gain on raw materials as yarn prices adjusted upward. Management said the fabric business was comparable to last year's first quarter but around 3-4% lower than the fourth quarter, citing a missed U.S. tariff sampling season, while spinning utilization was full with good margins. Management also discussed cotton price and crop expectations globally, ongoing capex including biomass boilers, an open-end project, and garment and technical textile capacity expansions.

Management described a Q4 FY'26 marked by rising cotton and yarn prices, easing US tariff pressure on exporters, and a mark-to-market forex loss that weighed on reported margins. Neeraj Jain said spinning spreads improved sharply from earlier lows due to Chinese yarn demand and Indian cotton prices aligning with international levels, while modernization capex on the spinning side was nearly complete. He also discussed industry-wide spindle capacity reductions, ongoing fabric capacity expansion, and representations to the government seeking duty-free cotton imports.