Vardhman Textiles Q1 Update: Yarn Production Up, Fabric Sales Strong!
Keeping tabs on a company’s production and sales figures is like peeking behind the curtain to see how well the business engine is running. For an integrated textile powerhouse like Vardhman Textiles Limited (VTL), these numbers offer crucial insights into operational health and market demand. VTL is a major player in the Indian textile sector, known for its extensive range of yarns, grey and processed fabrics, and even threads and garments. Their vertically integrated model means they often use their own yarns to produce fabrics, and then process those fabrics further, making ‘internal transfers’ a significant part of their sales figures.
The company recently shared its production and sales data for the quarter ended June 30, 2025 (Q1 FY26). Let’s dive into what these numbers tell us:
Yarn Segment: Production on the Rise! 🧵
Vardhman’s yarn division saw a positive trend in production. In Q1 FY26, yarn production reached 68,639 Metric Tons (MT). This is a noticeable increase compared to both the previous quarter (Q4 FY25 at 67,694 MT) and the same quarter last year (Q1 FY25 at 66,881 MT). Sales for the quarter stood at 65,329 MT, slightly below production but still healthy, indicating a robust manufacturing pace.
| Particulars | Q1 25-26 | Q4 24-25 | Q1 24-25 | YTD Mar-25 |
|---|---|---|---|---|
| Production | 68,639 | 67,694 | 66,881 | 2,67,552 |
| Sales (including Internal Transfers) | 65,329 | 68,684 | 62,969 | 2,66,289 |
Fabric Segments: Demand for Finished Goods Shines ✨
While yarn production showed growth, the fabric segments presented a nuanced picture. Both Grey Fabric and Processed Fabric saw a slight moderation in production figures this quarter compared to previous periods.
Grey Fabric (in Lac meters)
| Particulars | Q1 25-26 | Q4 24-25 | Q1 24-25 | YTD Mar-25 |
|---|---|---|---|---|
| Production | 496 | 515 | 524 | 2,078 |
| Sales (including Internal Transfers) | 497 | 513 | 512 | 2,070 |
Interestingly, for Grey Fabric, sales at 497 Lac meters slightly surpassed production in Q1 FY26, suggesting that the company was clearing existing inventory. This trend was even more pronounced in the Processed Fabric segment.
Processed Fabric (in Lac meters)
| Particulars | Q1 25-26 | Q4 24-25 | Q1 24-25 | YTD Mar-25 |
|---|---|---|---|---|
| Production | 410 | 421 | 422 | 1,699 |
| Sales (including Internal Transfers) | 418 | 415 | 407 | 1,680 |
Processed Fabric sales jumped to 418 Lac meters in Q1 FY26, outperforming both Q4 FY25 (415 Lac meters) and Q1 FY25 (407 Lac meters). Crucially, sales also exceeded production (410 Lac meters) for the quarter. This indicates strong demand for Vardhman’s finished and value-added fabric products, a very positive sign for their downstream operations.
In essence, while Vardhman is scaling up its core yarn manufacturing, there’s clear evidence of robust market absorption for its processed fabrics. These quarterly updates are vital for investors and industry watchers to gauge the pulse of this textile giant’s performance.
source: Corporate Announcement
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