Vardhman Textiles Limited

VTL.NS

Manufacturing - Textiles · Industrials

Price

₹602.90

+2.40 (+0.40%)

Market Cap

₹174.52B

Exchange

National Stock Exchange of India

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Mixed

Growth

Mixed

Cash Flow

Mixed

Stability

Exceptional

Valuation

Strong

Dividends

Weak

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Winston Score History

The full picture

Vardhman Textiles Limited is one of India's largest textile manufacturers. The company makes yarn, fabric, and finished garments, selling to clothing brands, retailers, and other textile businesses across India and internationally. It operates across the full textile supply chain — from raw cotton processing all the way to finished fabric — which is relatively rare among Indian textile companies.

Vardhman earns revenue by selling its products directly to business customers, not to everyday shoppers. It is headquartered in Ludhiana, Punjab, and runs multiple large manufacturing facilities across India. Its scale and vertical integration — controlling most steps of production in-house — help keep costs lower than smaller competitors. The main growth driver is rising global demand for "China-plus-one" sourcing, where international brands look to India as an alternative supplier, but the company also faces risks from cotton price swings and currency fluctuations that can squeeze profit margins unpredictably.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-22.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

₹0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

66.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

₹0 cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Vardhman Textiles Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 284.2M (2022) → 284.7M (2026)

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

47.6%

Healthy — 47.6% gross margin

Profit after running costs

Operating Margin

12.8%

Healthy — 12.8% operating margin

Return on the money invested

ROCE

7.3%

Weak — 7.3% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+3.3%

Slow sales growth (+3.3% YoY)

Profit growth

EPS YoY

-0.5%

Earnings shrinking (-0.5% YoY)

Slight earnings drop. Typical near a cyclical low.

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

84%

Modest — 84% of profit becomes cash

Spare cash per sale

FCF Margin

-2.1%

Burning cash (-2.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.18

Conservative — low debt load (0.18)

Covers its interest

Interest Cover

9.72x

Comfortably covers interest (9.7x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

20.2x

Growth-priced — P/E 20.2

P/E above the market average. People are paying up for expected growth.

Cheaper or dearer next year

P/E vs Forward

+7.6

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (20.2 → 12.7)

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Dividends

Dividend

Dividend Yield

0.85%

Small dividend — 0.85% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

-28.5%

Dividend cut (-28.5% YoY) — warning sign

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