Vardhman Textiles Hits Decade Highs in FY26; Board Declares ₹5 Dividend and Signals Major Expansion

Synopsis: Vardhman Textiles Limited delivered a resilient performance for the financial year ending March 31, 2026, with standalone net profits reaching Rs. 740.02 crore. Highlighting its commitment to shareholders, the Board has recommended a Rs. 5.00 per share dividend and noted significant capacity additions in Baddi and Budhni.

In a board meeting concluded at 12:45 PM on May 07, 2026, the Directors of Vardhman Textiles Limited approved the audited financial results for the quarter and year ended March 31, 2026. 

The company’s standalone revenue from operations for the full year reached Rs. 9,652.33 crore, compared to Rs. 9,587.21 crore in the previous fiscal year. Standalone profit after tax for the year stood at Rs. 740.02 crore, while total comprehensive income was recorded at Rs. 744.00 crore.

Investors were rewarded as the Board recommended a dividend of Rs. 5.00 per share on fully paid-up equity shares of the Company for the financial year 2025-26. Strategically, the company announced the successful capitalization of its new technical textile unit in Baddi and an additional processing line in Budhni. These projects, which saw a combined capitalization of Rs. 570 crores this quarter, marked the commencement of commercial production in early March 2026.

In a separate regulatory disclosure, the board also approved an expansion of its garment manufacturing unit in Punjab. The project will increase the company’s men’s shirt production capacity from 2.20 million pieces per annum to about 4.50 million pieces per annum, with an estimated investment of ₹125 crore, funded through internal accruals and debt. The expansion, expected to be completed by the end of FY27, is aimed at strengthening relationships with premium international brands while improving capacity utilization and cost efficiency. 

Investors responded with optimism to the dividend declaration and the roadmap for capacity expansion. On the day the results were made public, Vardhman Textiles’ stock demonstrated firm momentum on the NSE, as the market weighed the company’s strong operational performance and significant capital investments.

The company’s standalone performance for FY26 was headlined by a total income of Rs. 9,927.75 crore and a profit before tax of Rs. 940.38 crore, resulting in a Basic and Diluted Earnings Per Share (EPS) of Rs. 25.58. Reflecting this profitability and healthy cash flow net cash generated from operating activities stood at Rs. 1,101.81 crore the board maintained its robust dividend policy.

This steady performance was achieved despite a challenging environment, with the company successfully managing cost of materials consumed at Rs. 5,266.66 crore. With property, plant, and equipment valued at Rs. 5,016.23 crore and capital work-in-progress standing at Rs. 586.06 crore, the company appears well-positioned for its next phase of growth.

The stock saw some intraday profit booking despite the positive developments. As of May 7, 2026, shares of Vardhman Textiles Limited were trading at Rs. 599.50, down 1.71% from the previous close of Rs. 609.90. The stock opened higher at Rs. 618.00 and touched an intraday high of Rs. 622.15 before slipping to a low of Rs. 595.50, indicating volatility as traders locked in gains following the recent rally.

During the session, about 6.07 lakh shares were traded with a turnover of roughly Rs. 36.88 crore, while the company’s market capitalization stood near Rs. 17,333.77 crore. Notably, the stock had recently touched its 52-week high of Rs. 647.00 on May 6, 2026, reflecting the strong uptrend seen in the past months.

About the Company

Vardhman Textiles Limited, established in 1965, is one of India’s largest vertically integrated textile conglomerates. The company is a market leader in the manufacturing of cotton yarn, synthetic blended yarn, and grey and processed fabric. With a massive manufacturing footprint across Punjab, Himachal Pradesh, and Madhya Pradesh, Vardhman is a preferred supplier to leading global brands and retailers, maintaining a reputation for “Delivering Excellence” for over six decades.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Vardhman Textiles Hits Decade Highs in FY26; Board Declares ₹5 Dividend and Signals Major Expansion appeared first on Trade Brains.