Vardhman Textiles Limited (VTL) AI Stock Analysis

• Market Cap: ₹142.04B
• Dividend Yield: 1.13%
• Average Volume (3M): 50.55K
• Price to Earnings (P/E): 18.3
• Beta (1Y): 1.04
• Revenue Growth: 2.50%
• EPS Growth: 6.26%
• Country: IN
• Employees: 24,929
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 5.80
• Shares Outstanding: 289,237,300
• 10 Day Avg. Volume: 12,830
• 30 Day Avg. Volume: 50,547
• PEG Ratio: 0.32
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 18.54
• 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: 68 Neutral
• Price Target: ₹558.00 ▲(31.11% Upside)

The score is driven primarily by solid financial performance (strong margins, improving profitability, and a strengthening balance sheet). Technicals are supportive but tempered by an overbought RSI, and valuation is reasonable on earnings but supported by only a low dividend yield.

Positive Factors

Revenue Growth

Consistent revenue growth and robust profit margins indicate strong market demand and effective cost management, supporting long-term business viability.

Debt Management

Effective debt reduction enhances financial stability and reduces risk, providing the company with greater flexibility for future investments and growth.

Cash Flow Improvement

Improved cash flow indicates better liquidity management, enhancing the company's ability to invest in growth opportunities and manage financial obligations.

Negative Factors

Operational Volatility

Operational volatility in margins can impact predictability in earnings, potentially affecting investor confidence and strategic planning.

Historical Cash Flow Volatility

Past cash flow volatility suggests potential challenges in maintaining consistent liquidity, which could impact the company's ability to fund operations and growth.

Substantial Debt Levels

While debt has been reduced, the remaining substantial debt level requires careful management to avoid financial strain and ensure long-term sustainability.

Vardhman Textiles Limited Business Overview & Revenue Model

Company Description

Vardhman Textiles Limited, together with its subsidiaries, manufactures and sells textiles and fibre in India, rest of Asia, the United States, Europe, and the Middle East. It offers yarns, fabrics, fibers, threads, and garments. The company also provides specialized greige and dyed yarns in cotton, polyester, acrylic, and various blends; and value added products, such as organic cotton, melange, core spun yarns, ultra yarns, gassed mercerized, super fine yarns, slub and cellulose yarns, and fancy yarns for hand knitting. In addition, it is involved in lending and investing activities; and the manufacture and sale of steel products, including hot rolled bars, and special and alloy steel for automotive, engineering, bearing, and allied industries. The company was formerly known as Mahavir Spinning Mills Limited and changed its name to Vardhman Textiles Limited in September 2006. Vardhman Textiles Limited was founded in 1965 and is based in Ludhiana, India.

How the Company Makes Money

Vardhman Textiles Limited generates revenue through multiple key streams, primarily from the sale of yarn and fabric. The company's yarn segment, which includes cotton, polyester, and blended yarns, constitutes a significant portion of its revenue, catering to both domestic and global markets. Additionally, VTL's fabric segment offers a variety of products, such as woven and knitted fabrics, contributing to its earnings. The company also benefits from strategic partnerships with garment manufacturers and retailers, which enhance its market reach and distribution capabilities. Furthermore, VTL's commitment to quality and innovation allows it to command premium pricing for its products, thereby boosting profitability. Overall, the company's diversified product portfolio and strong market presence are crucial to its financial success.

Vardhman Textiles Limited Financial Statement Overview

Summary

Financials are solid overall: strong profitability (gross margin consistently above 40%) and improved net margin alongside 6.2% revenue growth (2024 to 2025). Balance sheet stability is supported by a high equity ratio (~79%) and lower debt-to-equity (0.28 to 0.13), but cash flow remains the main watch item due to historical volatility despite free cash flow turning positive in 2025.

Income Statement

Vardhman Textiles Limited demonstrates strong profitability with a gross profit margin consistently above 40% and impressive revenue growth over the years, notably a 6.2% increase from 2024 to 2025. The net profit margin improved significantly, reflecting enhanced cost management. However, fluctuations in EBIT and EBITDA margins suggest some operational volatility.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of around 79% for 2025, indicating financial stability. The debt-to-equity ratio decreased from 0.28 in 2024 to 0.13 in 2025, showcasing effective debt management. Yet, the company maintains a substantial level of debt that warrants monitoring.

Cash Flow

The cash flow position has improved with a notable recovery in free cash flow from negative in 2024 to positive in 2025. Operating cash flow has rebounded strongly, supporting liquidity. However, historical volatility in cash flow metrics indicates potential cash management challenges.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	98.62B	97.85B	95.05B	101.37B	96.22B	61.40B
Gross Profit	40.23B	40.42B	35.73B	39.11B	47.98B	26.94B
EBITDA	12.85B	13.20B	10.37B	13.81B	23.11B	8.49B
Net Income	8.52B	8.83B	6.32B	7.95B	15.47B	4.14B
Balance Sheet
Total Assets	0.00	124.32B	119.81B	113.33B	109.79B	96.27B
Cash, Cash Equivalents and Short-Term Investments	5.52B	5.52B	2.80B	15.15B	7.23B	7.14B
Total Debt	0.00	12.39B	17.91B	16.78B	19.88B	21.32B
Total Liabilities	-99.66B	24.66B	27.93B	26.81B	31.38B	30.20B
Stockholders Equity	99.66B	98.96B	91.00B	85.63B	77.04B	64.74B
Cash Flow
Free Cash Flow	0.00	6.11B	-13.39B	12.31B	9.26B	-746.40M
Operating Cash Flow	0.00	16.44B	-10.55B	18.53B	14.45B	1.68B
Investing Cash Flow	0.00	-8.92B	11.04B	-14.45B	-8.99B	-1.16B
Financing Cash Flow	0.00	-7.33B	-897.10M	-3.99B	-5.71B	-1.75B

Vardhman Textiles Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 425.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VTL, the sentiment is Positive. The current price of 425.6 is above the 20-day moving average (MA) of 424.36, below the 50-day MA of 433.18, and below the 200-day MA of 445.59, indicating a bullish trend. The MACD of 9.92 indicates Negative momentum. The RSI at 69.21 is Neutral, neither overbought nor oversold. The STOCH value of 74.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:VTL.

Vardhman Textiles Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VTL	68 Neutral	₹142.04B	18.32	―	1.13%	2.50%	6.26%
RUBYMILLS	64 Neutral	₹6.91B	12.84	―	0.78%	31.27%	38.24%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RSWM	59 Neutral	₹7.26B	90.11	―	―	5.54%	―
NAHARSPING	53 Neutral	₹6.76B	19.30	―	0.51%	3.67%	―
GLOSTERLTD	48 Neutral	₹7.10B	89.10	―	6.20%	86.75%	―

Vardhman Textiles Limited Corporate Events

Vardhman Textiles Files Q3 FY26 Earnings Call Transcript with Exchanges

Vardhman Textiles Limited has submitted to the stock exchanges the official transcript of its earnings conference call held on January 21, 2026, covering the company’s financial and operational performance for the third quarter of FY26. The disclosure, made under SEBI’s listing and disclosure norms, formalizes the availability of detailed management commentary from the senior leadership team, including the joint managing director, executive director, CFO and other key functional heads, providing investors and analysts with a structured record of the company’s Q3 FY26 discussion for reference and transparency.

Vardhman Textiles Amends Objects to Enter Power Generation Business

Vardhman Textiles Limited’s board has approved an amendment to the company’s Memorandum of Association to add a new object clause enabling it to set up, acquire, manage and operate electricity generation plants across a range of conventional and non‑conventional sources, including hydel, thermal, nuclear, gaseous, solar and wind. Subject to shareholder approval via postal ballot, this move positions the textile manufacturer to generate power for captive consumption as well as for sale to external parties, potentially enhancing energy security, cost efficiency and creating a new revenue stream that could support its long‑term operational and competitive strategy.

Vardhman Textiles Releases Q3 and 9M FY26 Earnings Presentation

Vardhman Textiles Limited has notified stock exchanges that it has released an earnings presentation covering its unaudited financial results for the quarter and nine months ended 31 December 2025. The disclosure, made in compliance with Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, provides investors and other stakeholders with updated financial and operational information for Q3 and 9M FY26, reinforcing the company’s transparency practices and facilitating more informed assessment of its performance.