Vardhman Polytex Ltd (VARDMNPOLY) AI Stock Analysis

• Market Cap: ₹3.60B
• Dividend Yield: N/A
• Average Volume (3M): 39.38K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 1.23
• Revenue Growth: -6.24%
• EPS Growth: N/A
• Country: IN
• Employees: 974
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): <0.01
• Shares Outstanding: 458,894,000
• 10 Day Avg. Volume: 51,608
• 30 Day Avg. Volume: 39,383
• PEG Ratio: -0.15
• Price to Book (P/B): -1.39
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -2.82
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: ₹8.00 ▲(4.17% Upside)

Vardhman Polytex Ltd's overall stock score is primarily impacted by its weak financial performance, characterized by high leverage and cash flow issues. Technical analysis indicates bearish trends, further weighing down the score. The valuation is moderate, providing some support but not enough to offset financial and technical challenges.

Vardhman Polytex Ltd Business Overview & Revenue Model

Company Description

Vardhman Polytex Ltd (VARDMNPOLY) is a leading player in the textiles sector, primarily engaged in the manufacturing and trading of synthetic and blended yarns. The company specializes in producing a wide range of high-quality textile products, catering to various industries, including apparel, home textiles, and technical textiles. With a commitment to innovation and sustainability, Vardhman Polytex aims to meet the evolving needs of its customers while enhancing its production capabilities through advanced technology.

How the Company Makes Money

Vardhman Polytex generates revenue primarily through the sale of its synthetic and blended yarn products to domestic and international markets. The company has established a diversified customer base, including textile manufacturers and garment exporters, which provides a steady demand for its products. Key revenue streams include bulk sales to large textile industries, as well as smaller orders from regional customers. Additionally, Vardhman Polytex may benefit from strategic partnerships with other firms in the textile supply chain, enabling it to expand its market reach and enhance its product offerings. Factors such as competitive pricing, product quality, and customer service play crucial roles in driving the company's earnings.

Vardhman Polytex Ltd Financial Statement Overview

Summary

Vardhman Polytex Ltd faces substantial financial challenges with significant revenue contraction and profitability issues. The balance sheet shows high leverage with negative equity, and cash flow difficulties are evident, relying heavily on external financing. Recent improvements are overshadowed by historical instability.

Income Statement

Vardhman Polytex Ltd has experienced significant volatility in revenue and margins. The company showed a sharp decline in total revenue over the past years, with a large drop from 2022 to 2025. The gross profit margin and net profit margin have been highly inconsistent, signaling instability. Recent improvements in net income for 2025 are positive but remain overshadowed by historical losses.

Balance Sheet

The balance sheet reveals a precarious financial situation with negative stockholders' equity and a high debt-to-equity ratio, indicating over-leverage. Although total liabilities have decreased, they still exceed total assets, which is a concern. The equity ratio is negative, highlighting financial instability and risk.

Cash Flow

Cash flow metrics indicate a significant decline in operating cash flow and negative free cash flow over the recent periods. The operating cash flow to net income ratio is unfavorable, with the company struggling to generate sufficient cash from operations. Financing cash flow has been positive in recent years, suggesting reliance on external financing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.80B	2.85B	3.71B	6.16B	9.29B	5.09B
Gross Profit	700.63M	183.47M	407.05M	773.57M	2.31B	1.30B
EBITDA	473.75M	379.85M	-129.24M	670.92M	622.81M	170.40M
Net Income	258.72M	149.24M	-267.60M	14.91M	-155.56M	-566.97M
Balance Sheet
Total Assets	0.00	2.76B	2.76B	2.91B	3.26B	3.05B
Cash, Cash Equivalents and Short-Term Investments	3.81M	4.37M	10.87M	3.51M	1.11M	1.31M
Total Debt	0.00	496.52M	761.90M	4.47B	5.29B	5.23B
Total Liabilities	2.27B	5.03B	6.37B	6.54B	6.90B	6.54B
Stockholders Equity	-2.27B	-2.27B	-3.61B	-3.62B	-3.64B	-3.48B
Cash Flow
Free Cash Flow	0.00	-1.12B	-139.56M	390.85M	594.57M	222.56M
Operating Cash Flow	0.00	-1.08B	-137.83M	403.01M	614.65M	240.34M
Investing Cash Flow	0.00	259.44M	262.88M	-6.48M	-6.46M	-12.25M
Financing Cash Flow	0.00	810.36M	-118.31M	-393.63M	-607.63M	-228.61M

Vardhman Polytex Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VARDMNPOLY, the sentiment is Negative. The current price of 7.68 is below the 20-day moving average (MA) of 8.12, below the 50-day MA of 8.52, and below the 200-day MA of 10.58, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 36.14 is Neutral, neither overbought nor oversold. The STOCH value of 13.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VARDMNPOLY.

Vardhman Polytex Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BANSWRAS	60 Neutral	₹3.89B	19.79	―	0.88%	7.72%	-27.40%
KOTHARIPRO	55 Neutral	₹5.35B	-6.50	―	―	-5.62%	-416.23%
RSWM	55 Neutral	₹7.25B	-42.83	―	―	5.54%	―
VARDMNPOLY	45 Neutral	₹3.60B	10.77	―	―	-6.24%	―
ASHIMASYN	39 Underperform	₹3.99B	-17.52	―	―	-95.87%	-122.93%

Vardhman Polytex Ltd Corporate Events

Vardhman Polytex Ltd Discloses Financial Obligations Status

Vardhman Polytex Ltd has disclosed details regarding its financial obligations, specifically the payment of interest and repayment of principal amounts on loans from banks and financial institutions as of September 30, 2025. The company reported a total outstanding loan amount of INR 57.20 crore, with a default amount of INR 22.52 crore. There are no outstanding amounts or defaults related to unlisted debt securities. This disclosure highlights the company’s current financial indebtedness, which includes both short-term and long-term liabilities, totaling INR 57.35 crore.

Vardhman Polytex Reports Positive Q2 Financial Results

Vardhman Polytex Limited has announced its financial results for the quarter ending June 30, 2025, which were published in Business Standard and Desh Sewak newspapers. The company reported a total income from operations of Rs. 63,771.35 lakhs and a net profit after tax of Rs. 5,031.90 lakhs for the quarter. These results indicate a positive financial performance compared to the previous quarter, reflecting the company’s stable market position and potential growth in the textile industry.

Vardhman Polytex Announces Special Window for Share Transfer Requests

Vardhman Polytex Ltd has announced a special window for the re-lodgement of transfer requests for physical shares, as per the SEBI circular dated July 2025. The company reported that no requests were received, processed, approved, or rejected during July 2025, indicating a potential stabilization or lack of activity in this area. This announcement is part of the company’s compliance with regulatory requirements and may have implications for shareholders and market operations.