Vardhman Textiles Ltd.
NSE: VTLVardhman Textiles Ltd.: A 30-second snapshot
Vardhman Textiles (VTL) trades at ₹606.95, up 28.84% over the past year and 29.4% above its 200-day moving average, carrying the lowest trailing PE (23.2) among its five tracked textile peers. The improvement in price coincides with FY26 concall commentary citing rising China yarn demand and improved spreads, though standalone PAT for FY26 declined and the 5-year earnings CAGR stands at -22.3%. Debt-to-equity of 17.52 remains the most prominent structural concern on the balance sheet.
P/E
23.2
Forward P/E
13.4
ROE
+7.3%
Debt / Equity
17.52
Profit Margin
+7.5%
Div. Yield
+0.8%
5Y ROE > 15%
0/5
5Y FCF > 0
2/5
Quality
34/100
News
8 headlines · 5 positive · 1 negative
Vardhman Textiles FY26 Results: Standalone PAT Declines to ₹740.02 Cr; ₹5/Share Dividend Recommended - scanx.trade
scanx.trade
Vardhman Textiles Q4 FY26 Concall: Spreads Rise, China Yarn Demand Surges - scanx.trade
scanx.trade
VTL: Export demand surge and improved spreads drive optimism for stronger quarters ahead - TradingView
TradingView
VTL: Margins improved on strong demand and modernization, with positive outlook despite forex hit - TradingView
TradingView
VTL: FY26 saw lower profits and margins, but capacity and sustainability investments continue - TradingView
TradingView
Recent context
- ·FY26 standalone PAT declined to ₹740.02 crore and a ₹5/share dividend was recommended; management cited forex headwinds as a margin dampener during the year.
- ·The Q4 FY26 concall highlighted a surge in China yarn demand and rising spreads as near-term volume drivers, with management expressing a positive directional view on subsequent quarters.
- ·Capacity and sustainability investments are described as continuing through the downturn, positioning the company for a potential operating leverage effect if demand conditions sustain — though the earnings record over 5 years has not yet reflected this.
Strengths
- +Lowest trailing PE in the tracked peer group: VTL at 23.2 versus PAGEIND (54.9), KPRMILL (36.4), TRIDENT (30.9), and WELSPUNLIV (57.6) — VTL is ranked 1st of 5 on this metric.
- +Price action reflects a broad recovery: +28.84% over 1 year and +26.76% over the past 3 months, with the stock trading above both its 50-DMA (₹564.19) and 200-DMA (₹468.85) and RSI at 57.73 (neutral zone).
- +Forward PE of 13.4 versus trailing PE of 23.2 suggests analyst consensus is modelling a meaningful step-up in near-term earnings relative to the trailing period.
- +FY26 concall flagged rising China yarn demand and improved textile spreads as near-term tailwinds, with modernization investments described as ongoing — context that informed the 5-of-8 positive news readings in the recent sample.
Weaknesses
- −Debt-to-equity of 17.52 is exceptionally high by textile industry norms and remains flat in trend; elevated leverage with a history of declining earnings constrains financial flexibility.
- −5-year earnings CAGR of -22.3% and revenue growth of -0.4% over the same period reflect a sustained contraction in profitability; FCF was positive in only 2 of the tracked years.
- −ROE of 7.33% has never exceeded 15% in any tracked year; the persistence consistency score is 0, indicating no meaningful track record of compounding returns on equity.
- −Quality score of 19 places VTL 4th out of 5 textile peers — only Welspun Living (14) scores lower — reflecting weak overall fundamental quality relative to the sector.
Open questions
- ?Does the D/E of 17.52 reflect the capital structure of a textile business with significant fixed-asset financing, or does it represent a level of leverage that becomes problematic if the current spread improvement reverses?
- ?The forward PE of 13.4 embeds a large implied earnings jump — what specific volume, margin, or pricing assumptions underpin that estimate, and how sensitive is the outcome to the China yarn demand cycle?
- ?How durable is the current spread improvement cited in the Q4 concall — is it driven by structural demand shifts or by a short-term inventory restocking cycle in export markets?
- ?Given that ROE has never exceeded 15% in any tracked year despite periodic demand recoveries, what would need to change structurally in the business model for return on equity to improve sustainably?
Peer comparison: Textiles
Ranks 4 of 5 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| VTL | Vardhman Textiles Ltd.You're viewing | 23.2 | +7.3% | 19 |
| Industry avg | across 4 peers | 44.9 | — | 23 |
| KPRMILL | K.P.R. Mill Ltd. | 36.4 | — | 32 |
| PAGEIND | Page Industries Ltd. | 54.9 | — | 27 |
| TRIDENT | Trident Ltd. | 30.9 | — | 20 |
| WELSPUNLIV | Welspun Living Ltd. | 57.6 | — | 14 |
Technical state
Current price
₹606.95
SMA 50
₹564.19
SMA 200
₹468.85
RSI (14)
57.7 (neutral)
From 52w high
-6.2%
1Y return
+28.8%
3M return
+26.8%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 17.52 is exceptionally elevated for a textile manufacturer; most textile peers carry D/E well below 1.0, and a flat debt trend with ongoing capex leaves limited buffer if earnings deteriorate further.
- high5-year earnings CAGR of -22.3% and revenue growth of -0.4% over the same period signal a sustained decline in profitability; FCF was positive in only 2 of the tracked years and the consistency score is 0.
- mediumROE of 7.33% has never exceeded 15% in any tracked year; quality score of 19 ranks 4th out of 5 textile sector peers, above only Welspun Living (14).
- lowNews sample is limited to 8 articles; while sufficient to determine overall sentiment, the coverage depth is thin and recent corporate developments may not be fully represented.
Cross-section contradictions
- Price is up 28.84% over 1 year and trades 29.4% above its 200-DMA (₹468.85), yet 5-year earnings CAGR is -22.3% and the fundamental consistency score is 0 — price momentum and the underlying earnings trajectory diverge materially.
- Forward PE of 13.4 versus trailing PE of 23.2 embeds a substantial implied earnings recovery, but the 5-year record of -22.3% earnings CAGR and FCF positive in only 2 years provides no historical basis for sustained profitability at that scale.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days