Vardhman Textiles Ltd logo

Vardhman Textiles Ltd

VTL NSE

Vardhman textiles is engaged in the business of manufacturing Yarn, Fabric, Acrylic Fiber and Garments, the Group has over the years developed as a business conglomerate with a presence in India and in 75 countries across the globe. [1]

AI Verdict: HOLD Confidence: 5%

Vardhman Textiles trades at a PE of 25.4x with declining profitability (TTM profit growth of -12%) and stagnant sales (TTM growth of 1%), though the stock has delivered a strong 44% return over the past year. The valuation appears stretched given a 3-year ROE of just 8% and muted revenue trajectory, warranting a cautious stance despite long-term capital appreciation.

Key Fundamentals

SmallcapCotton/BlendedTextiles
Market Cap
₹18,688 Cr
Volatility
Moderate
P/E Ratio
24.61
EBITDA
₹1,239 Cr
Return on Equity
9.3%
Debt to Equity
0.16
Book Value
₹363.23
EPS
₹25.37
52W High
₹670.05
52W Low
₹383.7

Technical Indicators

Key Insights

Strengths

1
  • Company has been maintaining a healthy dividend payout of 17.7%

Weaknesses

2
  • The company has delivered a poor sales growth of 9.96% over past five years.
  • Company has a low return on equity of 7.78% over last 3 years.

Growth Rate

Revenue Growth
-2.49% ↘
Net Income Growth
-13.71% ↘
Cash Flow Change
255.78% ↗
ROE
28.43% ↗
ROCE
19.05% ↗
EBITDA Margin (Avg.)
-22.72% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk medium

Vardhman Textiles trades at a PE of 25.4x with declining profitability (TTM profit growth of -12%) and stagnant sales (TTM growth of 1%), though the stock has delivered a strong 44% return over the past year. The valuation appears stretched given a 3-year ROE of just 8% and muted revenue trajectory, warranting a cautious stance despite long-term capital appreciation.

Bull Case 7
  • Stock CAGR of 44% over the past 1 year significantly outperforming broader market indices
  • Healthy 5-year compounded profit growth of 12% demonstrating long-term earnings capability
  • 10-year ROE of 11% indicates reasonable long-term capital efficiency despite recent softness
  • Market cap of Rs 19,069 Cr provides mid-cap stability with institutional interest
  • 5-year stock CAGR of 19% reflects consistent long-term wealth creation for shareholders
  • Consistent dividend payout ratio of 17.7% providing steady income to long-term investors
  • Price-to-book ratio of 1.82x is reasonable for a textile manufacturer with significant fixed assets
Bear Case 8
  • TTM compounded profit growth of -12% signals significant near-term earnings deterioration
  • 3-year compounded sales growth of -1% indicates persistent revenue stagnation
  • 3-year ROE of only 8% and last year ROE of 7% well below cost of equity, indicating poor capital allocation
  • PE of 25.4x is expensive for a textile company delivering just 1% TTM sales growth
  • Poor 5-year sales growth of approximately 10% (cited as 9.96%) for a mid-cap company in a competitive sector
  • 10-year compounded profit growth of only 2% suggests structural inability to scale earnings
  • Dividend yield of only 0.76% offers minimal income cushion against capital loss risk
  • 20% of analysts rate the stock a SELL with only 40% recommending BUY, reflecting divided consensus

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Neutral 2
  • Green energy pact amended May 29

    Vardhman Textiles amended its share subscription agreement for a 19 MW hybrid renewable energy plant, with revised subscription amounts of ₹24.46 crore and ₹53.41 crore.

  • MD appointments seek shareholder nod May 26

    Shareholders will vote on appointing Mrs. Suchita Jain and Mr. Neeraj Jain as Managing Directors for five-year terms starting April 1, 2026.

TL;DR: Recent news flow for Vardhman Textiles is purely procedural with no material positive or negative catalysts. The green energy investment amendment signals continued commitment to renewable capacity but involves no strategic shift. Leadership continuity is being formalized through MD appointments. In the absence of operational or demand-related updates, the near-term narrative remains uneventful.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
2,486
2,318
2,397
2,330
2,459
2,309
2,502
2,465
2,509
2,386
2,480
2,505
2,498
Expenses
2,224
2,103
2,192
2,085
2,151
1,961
2,187
2,153
2,222
2,060
2,146
2,221
2,204
Operating Profit
262
215
205
244
308
348
315
313
287
326
334
284
294
OPM %
11%
9%
9%
10%
13%
15%
13%
13%
11%
14%
13%
11%
12%
Other Income
83
103
98
86
81
79
93
79
133
82
49
74
68
Interest
30
32
22
19
29
18
18
19
23
23
21
26
23
Depreciation
104
105
104
99
97
97
100
101
103
109
114
118
123
PBT
211
182
178
212
264
312
291
273
293
276
249
214
217
Tax %
24%
25%
23%
23%
23%
23%
32%
22%
19%
25%
25%
21%
13%
Net Profit
160
137
136
162
202
240
197
212
238
208
188
168
189
EPS in Rs
5.49
4.72
4.64
5.54
6.94
8.25
6.81
7.28
8.21
7.16
6.47
5.75
6.39
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
6,741
5,848
6,030
6,248
6,878
6,735
6,140
9,622
10,137
9,505
9,785
9,869
Expenses
5,623
4,672
4,831
5,345
5,684
5,798
5,326
7,348
8,814
8,531
8,522
8,630
Operating Profit
1,118
1,176
1,199
903
1,194
937
814
2,274
1,324
973
1,263
1,239
OPM %
17%
20%
20%
14%
17%
14%
13%
24%
13%
10%
13%
13%
Other Income
161
158
591
215
239
187
222
264
232
369
384
274
Interest
125
89
129
118
120
135
113
100
102
102
77
92
Depreciation
532
374
343
240
254
333
364
368
394
405
401
465
PBT
622
872
1,318
760
1,059
655
559
2,071
1,060
835
1,168
955
Tax %
28%
28%
25%
22%
30%
10%
24%
25%
24%
24%
24%
21%
Net Profit
446
624
994
592
741
591
427
1,551
805
637
887
753
EPS in Rs
12.57
19.31
34.17
20.24
25.43
20.08
14.4
53.54
27.5
21.84
30.54
25.76
Div. Payout %
16%
15%
8%
15%
14%
0%
24%
62%
13%
18%
16%
19%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
63
61
55
56
56
57
57
57
57
57
57
57
Reserves
3,313
3,939
4,218
4,897
5,535
5,991
6,412
7,647
8,507
9,043
9,839
10,457
Borrowings
2,640
2,630
2,238
2,321
2,278
2,221
2,132
1,983
1,678
1,791
1,238
1,855
Other Liabilities
1,363
883
990
971
1,149
1,087
1,022
1,293
1,094
1,091
1,299
1,497
Total Liabilities
7,378
7,513
7,502
8,246
9,018
9,356
9,622
10,980
11,335
11,983
12,433
13,866
Fixed Assets
2,875
2,627
2,591
2,631
3,201
3,628
3,529
3,494
3,937
3,769
4,150
5,094
CWIP
83
86
49
106
274
142
78
241
51
61
252
586
Investments
869
1,313
1,868
1,834
1,346
1,145
1,075
1,691
2,549
1,699
1,844
1,828
Other Assets
3,551
3,488
2,994
3,676
4,198
4,441
4,941
5,554
4,798
6,454
6,187
6,357
Total Assets
7,378
7,513
7,502
8,246
9,018
9,356
9,622
10,980
11,335
11,983
12,433
13,866
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
1,412
915
1,350
103
499
849
168
1,445
1,853
-1,055
1,644
1,108
Investing
-315
-451
-343
-167
-278
-379
-116
-899
-1,445
1,104
-892
-1,516
Financing
-975
-365
-1,180
92
-252
-296
-174
-571
-399
-90
-733
398
Net Cash Flow
122
99
-173
28
-30
175
-122
-26
9
-41
19
-10
Free Cash Flow
1,107
538
1,127
-253
-384
200
-72
936
1,238
-1,329
675
-579
CFO/OP
146
99
138
35
63
103
26
86
160
-87
149
107
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
44
49
44
44
43
44
62
50
43
47
48
48
Inventory Days
200
249
218
242
265
276
314
231
147
273
254
244
Days Payable
23
23
31
31
32
37
34
32
22
23
34
33
Cash Conversion Cycle
221
274
232
255
276
283
342
249
168
296
269
259
Working Capital Days
68
62
47
106
116
130
182
121
102
156
164
193
ROCE %
11%
14%
15%
11%
14%
10%
8%
23%
11%
9%
11%
9%

Shareholding Pattern

As of Mar 2026
Promoters 65.09%
DIIs 16.02%
Public 10.98%
FIIs 5.69%
Others 2.22%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
63.27%
63.21%
63.17%
63.15%
62.93%
62.91%
63.75%
63.86%
63.85%
64.07%
64.11%
64.13%
64.13%
64.19%
64.19%
64.21%
64.22%
64.21%
64.21%
64.44%
65.09%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
6.95%
6.37%
6.28%
6.12%
6.03%
5.97%
5.75%
6.02%
5.75%
5.72%
5.69%
DIIs
21.38%
21.13%
20.55%
18.67%
16.40%
16.38%
16.48%
16.85%
17.01%
16.96%
16.70%
16.84%
16.54%
16.66%
16.60%
16.71%
16.73%
16.58%
16.44%
16.34%
16.02%
Government
0.00%
0.00%
0.00%
0.00%
0.34%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
8.93%
9.19%
9.45%
9.85%
10.28%
11.02%
10.72%
10.43%
10.47%
10.36%
10.31%
10.74%
10.96%
10.92%
11.05%
11.01%
11.17%
11.05%
11.37%
11.16%
10.98%
Others
6.42%
6.48%
6.83%
8.33%
10.05%
9.68%
9.06%
8.86%
8.67%
8.61%
1.93%
1.92%
2.08%
2.11%
2.13%
2.10%
2.13%
2.14%
2.23%
2.33%
2.22%
No. of Shareholders
20,949
32,495
45,072
57,311
74,449
85,453
81,999
76,002
74,077
68,708
66,676
67,848
68,945
63,870
71,874
75,337
77,425
77,197
84,320
82,657
88,129

Documents

Frequently Asked Questions about Vardhman Textiles Ltd

What does Vardhman Textiles Ltd do?
Vardhman textiles is engaged in the business of manufacturing Yarn, Fabric, Acrylic Fiber and Garments, the Group has over the years developed as a business conglomerate with a presence in India and in 75 countries across the globe. [1]
Where is Vardhman Textiles Ltd (VTL) listed?
Vardhman Textiles Ltd is listed on the Indian stock exchanges. It is listed on NSE: VTL and BSE: 502986. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Vardhman Textiles Ltd belong to?
Vardhman Textiles Ltd operates in the Consumer Discretionary sector within the Textiles & Apparels industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Vardhman Textiles Ltd?
Vardhman Textiles Ltd has a market capitalisation of approximately ₹18687.60 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Vardhman Textiles Ltd?
The Price-to-Earnings (PE) ratio of Vardhman Textiles Ltd is 24.61. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Vardhman Textiles Ltd?
Over the past 52 weeks, Vardhman Textiles Ltd has traded between a low of ₹383.7 and a high of ₹670.05. This range helps investors understand the stock's price volatility and recent trading levels.
Does Vardhman Textiles Ltd pay dividends?
Yes, Vardhman Textiles Ltd has a dividend yield of 0.77%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Vardhman Textiles Ltd?
Vardhman Textiles Ltd has a Return on Equity (ROE) of 9.30%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Vardhman Textiles Ltd on Tapetide?
On Tapetide, you can view Vardhman Textiles Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Vardhman textiles is engaged in the business of manufacturing Yarn, Fabric, Acrylic Fiber and Garments, the Group has over the years developed as a business conglomerate with a presence in India and in 75 countries across the globe. [1]

Website vardhman.com
CEO Mr. Shri Paul Oswal M.Com.
Employees 23,196
Listed 2003-01-14
Face Value ₹ 2
Issued Size 28,92,37,300

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