Vardhman Textiles Limited (VTL) AI Stock Analysis

• Market Cap: ₹128.77B
• Dividend Yield: 1.13%
• Average Volume (3M): 50.55K
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.97
• Revenue Growth: 2.50%
• EPS Growth: 6.26%
• Country: IN
• Employees: 24,929
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 6.60
• 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): 2,729.22
• Revenue Forecast (FY): ₹9.06T

• Rating: 69 Neutral
• Price Target: ₹468.00 ▲(5.12% Upside)

Vardhman Textiles Limited shows strong financial performance with solid revenue growth and profitability, supported by a stable balance sheet. Technical indicators suggest caution due to potential overbought conditions. The valuation is reasonable, making the stock moderately attractive. The absence of recent earnings call data or corporate events limits additional insights.

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

Vardhman Textiles Limited exhibits robust financial health with steady revenue growth and improved profitability margins. The company's balance sheet reflects strong equity and effective debt reduction efforts, enhancing financial stability. Cash flow metrics show improvement, though past volatility highlights the need for cautious liquidity management.

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: Neutral
• Last Price: 445.20
• 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 Neutral. The current price of 445.2 is above the 20-day moving average (MA) of 440.11, above the 50-day MA of 436.73, and above the 200-day MA of 442.97, indicating a bullish trend. The MACD of 3.29 indicates Negative momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 61.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	69 Neutral	₹128.77B	15.04	―	1.13%	2.50%	6.26%
RSWM	64 Neutral	₹7.09B	87.95	―	―	5.54%	―
RUBYMILLS	64 Neutral	₹7.62B	14.18	―	0.78%	31.27%	38.24%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GLOSTERLTD	48 Neutral	₹7.09B	77.20	―	6.20%	86.75%	―
NAHARSPING	48 Neutral	₹7.14B	20.69	―	0.51%	3.67%	―

Vardhman Textiles Limited Corporate Events

Vardhman Textiles Releases 2Q FY26 Conference Call Recording

Vardhman Textiles Limited announced the release of an audio recording from their recent conference call discussing the financial results for the second quarter of the fiscal year 2026. This announcement highlights the company’s commitment to transparency and stakeholder engagement, as it provides insights into their financial performance and strategic direction.

Vardhman Textiles Releases Q2 FY26 Earnings Presentation

Vardhman Textiles Limited has released its earnings presentation for the quarter ended September 30, 2025, showcasing the company’s unaudited financial results. This announcement is part of their compliance with the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and reflects the company’s ongoing commitment to transparency and regulatory adherence.

Vardhman Textiles Concludes 52nd AGM with Scrutinizer’s Report

Vardhman Textiles Limited recently held its 52nd Annual General Meeting (AGM) on September 24, 2025, where a scrutinizer’s report was presented. The meeting included discussions on remote e-voting and electronic voting, in compliance with the Companies Act, 2013, and relevant SEBI regulations. The AGM was conducted smoothly, with necessary communications sent to shareholders via electronic means, ensuring transparency and adherence to regulatory requirements. This event underscores Vardhman’s commitment to maintaining robust governance practices and engaging effectively with its stakeholders.