Revenue and Profitability Trends
Net sales for Vardhman Textile have shown variability, peaking at over ₹10,100 crores in the fiscal year ending March 2023 before moderating to approximately ₹9,785 crores by March 2025. The company experienced a significant jump in sales from ₹6,139 crores in March 2021 to nearly ₹9,622 crores in March 2022, reflecting a strong recovery phase. Operating profit margins excluding other income have ranged from a high of 23.6% in March 2022 to a more recent 12.9% in March 2025, indicating some pressure on operational efficiency in the latest years.
Profit after tax (PAT) has similarly fluctuated, with a notable peak of ₹1,511 crores in March 2022, followed by a decline to ₹839 crores in March 2025. The PAT margin has mirrored this trend, reaching 16.1% in 2022 before settling at 9.1% in 2025. Earnings per share (EPS) have reflected these swings, with a high adjusted EPS of 272.15 in March 2022, influenced by a change in face value, and a more stable figure of 31.05 in March 2025.
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
Cost Structure and Expenses
The raw material cost has consistently been the largest expense, rising from around ₹3,574 crores in March 2019 to ₹5,426 crores in March 2025, reflecting both volume growth and inflationary pressures. Employee costs have also increased steadily, reaching ₹887 crores in the latest fiscal year. Other expenses have more than doubled from ₹829 crores in 2019 to over ₹2,233 crores in 2025, indicating rising operational costs. Notably, power costs were significant in earlier years but are not reported in recent years, possibly due to changes in accounting or operational structure.
Balance Sheet and Financial Position
Vardhman Textile's total assets have grown from ₹9,354 crores in March 2020 to ₹12,432 crores in March 2025, supported by increases in net block and investments. Shareholder's funds have expanded from ₹6,048 crores in 2020 to nearly ₹9,896 crores in 2025, reflecting retained earnings and capital growth. The company has managed to reduce its total debt from over ₹2,000 crores in 2020 to approximately ₹1,238 crores in 2025, signalling a strengthening financial position. Book value per share has improved from ₹214 in 2020 to ₹348 in 2025, underscoring enhanced net worth per equity share.
Cash Flow and Liquidity
Operating cash flow has been positive in most years, with ₹1,643 crores generated in March 2025, despite a negative cash flow in 2024. Investing activities have generally involved outflows, consistent with capital expenditure and investments, while financing activities have seen net outflows, indicating debt repayments and dividend payments. The closing cash and cash equivalents stood at ₹53 crores in March 2025, down from ₹214 crores in 2020, reflecting a more conservative cash holding strategy.
Why settle for Vardhman Textile? SwitchER evaluates this Garments & Apparels Smallcap against peers, other sectors, and market caps to find you superior investment opportunities!
- - Comprehensive evaluation done
- - Superior opportunities identified
- - Smart switching enabled
Summary of Historical Performance
Over the past six years, Vardhman Textile has experienced periods of strong growth and profitability, particularly around the fiscal year ending March 2022, which marked a peak in revenue, operating margins, and net profit. Subsequent years have seen some moderation in these metrics, though the company maintains a solid operating profit margin above 10% and a healthy PAT margin near 9% in the latest fiscal year. The balance sheet has strengthened with rising net worth and reduced debt levels, supporting financial stability.
Cost pressures, especially in raw materials and other expenses, have impacted margins, but the company’s ability to generate positive operating cash flow and invest in its asset base indicates ongoing operational resilience. Earnings per share and book value per share have shown consistent improvement, reflecting value creation for shareholders despite market and industry challenges.
Investors analysing Vardhman Textile’s historical performance should note the cyclical nature of the textile sector and the company’s demonstrated capacity to navigate fluctuations while maintaining a robust financial foundation.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
