Vardhman Acrylics Ltd. (VARDHACRLC) AI Stock Analysis

• Market Cap: ₹2.98B
• Dividend Yield: 4.02%
• Average Volume (3M): 42.64K
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.88
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 326
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.92
• Shares Outstanding: 80,363,750
• 10 Day Avg. Volume: 68,506
• 30 Day Avg. Volume: 42,638
• PEG Ratio: -0.87
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 15.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹38.00 ▼(-0.84% Downside)

The overall stock score for Vardhman Acrylics Ltd. is primarily influenced by its financial stability and low leverage, which are positive factors. However, the stock's technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The lack of earnings call data and corporate events means these factors do not contribute to the score.

Positive Factors

Low financial leverage and strong capital structure

A low debt-to-equity profile provides durable financial flexibility, allowing the company to fund working capital and capex through downturns without heavy refinancing. This reduces bankruptcy risk, supports investment in production capacity, and helps preserve strategic optionality over months.

Improving operating cash flow

Rising operating cash flow signals stronger cash generation from core operations, enhancing the firm’s ability to support day-to-day working capital and incremental investments. Sustained OCF improvement can underwrite capex and stabilize operations even if free cash flow is currently uneven.

Positive recent revenue growth

A reported ~10.6% revenue increase indicates recoveries in end-market demand or market share gains. If sustained, this top-line momentum improves scale economics, helps absorb fixed costs, and creates a platform for margin recovery and steady reinvestment over the medium term.

Negative Factors

Inconsistent free cash flow

Volatile free cash flow undermines the firm’s capacity to consistently fund capital projects, repay obligations, or return capital to shareholders. This uncertainty can force reliance on retained earnings or external financing, constraining strategic investments and long-term growth options.

Declining profitability margins and margin volatility

Falling and inconsistent margins point to ongoing cost pressure or weak pricing power versus input volatility. Persistent margin compression reduces free cash flow potential, limits reinvestment capacity, and increases vulnerability to cyclical downturns in the textile value chain.

Declining trend in shareholders' equity

Erosion of shareholders' equity over time can reflect recurring losses, dividend strain, or asset write-downs. This weakens the company’s buffer against shocks, reduces borrowing capacity, and may limit the ability to finance expansion or weather prolonged market weakness.

Vardhman Acrylics Ltd. Business Overview & Revenue Model

Company Description

Vardhman Acrylics Limited manufactures and supplies acrylic fibers and tows in India. Its products are used in apparels and house-hold products. The company provides its products under the VARLAN brand name. Vardhman Acrylics Limited was incorporated in 1990 and is based in Ludhiana, India. Vardhman Acrylics Limited is a subsidiary of Vardhman Textiles Limited.

How the Company Makes Money

The company generates revenue primarily through the sale of its acrylic fiber products. Vardhman Acrylics Ltd. supplies these fibers to textile manufacturers who use them for producing clothing and home textiles, among other products. The company's earnings are influenced by its ability to maintain strong relationships with key clients in the textile industry, ensuring consistent demand for its products. Additionally, Vardhman Acrylics Ltd. may engage in strategic partnerships and leverage the Vardhman Group's extensive network to expand its market reach and enhance its revenue streams.

Vardhman Acrylics Ltd. Financial Statement Overview

Summary

Vardhman Acrylics Ltd. demonstrates strengths in financial stability with a low leverage balance sheet. However, the income statement reveals challenges in maintaining consistent revenue and profitability margins. Cash flow performance is mixed, with improvements in operating cash flow but instability in free cash flow. The company needs to address operational inefficiencies and enhance its profitability margins to sustain long-term growth.

Income Statement

The company shows fluctuating revenue trends with a decline in recent years. Gross and net profit margins are inconsistent, indicating volatility in cost management and profitability. There is a noticeable decrease in EBIT and EBITDA margins, pointing to operational inefficiencies.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, indicating financial stability and lower financial risk. The company maintains a strong equity ratio, reflecting a solid capital structure. However, a declining trend in stockholders' equity raises concerns about long-term growth potential.

Cash Flow

Operating cash flow shows improvement, but free cash flow has been inconsistent, impacting the company's ability to reinvest and distribute dividends. The operating cash flow to net income ratio is positive, suggesting decent cash conversion, although free cash flow growth is uneven.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.94B	2.82B	2.97B	4.26B	3.03B	2.80B
Gross Profit	828.70M	829.60M	993.60M	1.36B	687.55M	1.08B
EBITDA	161.10M	193.10M	272.67M	488.78M	232.36M	630.53M
Net Income	92.50M	118.30M	175.36M	328.58M	145.59M	429.17M
Balance Sheet
Total Assets	0.00	3.49B	3.28B	3.42B	3.02B	4.85B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.25B	821.69M	909.99M	818.51M	2.80B
Total Debt	0.00	1.80M	11.37M	3.39M	27.85M	3.59M
Total Liabilities	-2.39B	1.10B	848.30M	968.81M	900.44M	867.41M
Stockholders Equity	2.39B	2.39B	2.43B	2.45B	2.12B	3.98B
Cash Flow
Free Cash Flow	0.00	211.20M	43.56M	305.34M	-120.02M	389.48M
Operating Cash Flow	0.00	261.60M	76.04M	385.27M	-94.14M	394.57M
Investing Cash Flow	0.00	-90.80M	120.32M	-367.33M	1.90B	-825.75M
Financing Cash Flow	0.00	-170.90M	-195.03M	-26.03M	-1.98B	-11.04M

Vardhman Acrylics Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VARDHACRLC, the sentiment is Negative. The current price of 38.32 is above the 20-day moving average (MA) of 37.22, above the 50-day MA of 37.84, and below the 200-day MA of 41.97, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 47.79 is Neutral, neither overbought nor oversold. The STOCH value of 25.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VARDHACRLC.

Vardhman Acrylics Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PASUPTAC	74 Outperform	₹4.07B	10.34	―	―	36.99%	10.60%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
VARDHACRLC	56 Neutral	₹2.98B	21.90	―	4.02%	―	―
LORDSCHLO	53 Neutral	₹3.66B	15.66	―	―	39.31%	―
KANORICHEM	45 Neutral	₹3.07B	-4.71	―	―	-1.30%	-27.85%
DIAMINESQ	43 Neutral	₹2.47B	-49.93	―	0.38%	―	―

Vardhman Acrylics Ltd. Corporate Events

Vardhman Acrylics Posts Higher Income and Profit in Q3 FY2025-26

Vardhman Acrylics Ltd. reported its unaudited financial results for the quarter and nine months ended 31 December 2025, showing total income of ₹79.67 crore for the quarter and ₹245.95 crore for the nine-month period, both higher than the comparable period a year earlier. Quarterly profit before tax rose to ₹9.64 crore and net profit to ₹7.41 crore, contributing to nine‑month net profit of ₹11.66 crore, reflecting improved operational performance driven by higher revenues and better inventory and cost management; earnings per share for the nine months reached ₹1.45, signalling steady profitability for shareholders ahead of the full-year close.