AHMEDABAD, India, Nov. 13, 2025 /PRNewswire/ — VGL Limited (“VGL” or the “Company”) today reported results for the quarter (Q2 FY26) and half year ended 30 September 2025 (H1 FY26). The period reflects a decisive improvement in operating profitability, a materially lighter balance sheet, and continued discipline in capital allocation.
Key Financial Highlights (Standalone, Rs. in Million)
| | | | | | |
| 154.79 | 278.31 | +79.80 % | 290.10 | 272.79 | –5.97% |
| 26.96 | 155.25 | +475.80Â % | 15.13 | 180.58 | +1,093.38Â % |
| 17.42Â % | 55.78Â % | +3,836 bps | 5.22Â % | 66.20Â % | +6,098 bps |
| 21.02 | 9.57 | –54.45% | 46.61 | 20.22 | –56.62% |
| 67.35 | 47.01 | –30.20% | 163.28 | 98.05 | –39.95% |
| –46.75 | 138.46 | Swing to profit | –156.01 | 127.29 | Swing to profit |
| –30.20% | 49.75 % | +7,995 bps | –53.78% | 46.66 % | +10,044 bps |
| 38.08 | 0.00 | –99.99% | 91.37 | 14.27 | –84.38% |
| 82.66 | 102.11 | +23.53Â % | 308.51 | 356.92 | +15.69Â % |
| 3.52 | 3.96 | +12.50Â % | 13.15 | 14.17 | +7.76Â % |
Performance highlights (Standalone)
- Leadership transition translating to outcomes: In the first full quarter under the new management team, the Company delivered a 79.8% YoY rise in Revenue from Operations, a swing to positive EBITDA of ₹138.46 million with 49.75% margin, and near-zero finance cost, reflecting sharper execution and balance-sheet repair.
- Margin reset firmly in place: Gross margin expanded +3,836 bps YoY to 55.78% in Q2 (H1: +6,098 bps to 66.20%), driven by stronger realisations, richer mix, and tighter input discipline led by new management.
- EBITDA swing with premium profitability: Q2 EBITDA turned positive to ₹138.46 mn with 49.75% margin (H1: ₹127.29 mn, 46.66% margin) from losses last year, clear evidence of operating leverage and cost take-out driven by new management.
- Cost excellence across the P&L: Employee expenses fell 54.45% YoY in Q2 (H1: 56.62%), while other operating expenses reduced 30.20% (H1: 39.95%), creating durable operating headroom.
- Finance cost nearly eliminated: Q2 finance cost was effectively nil (–99.99% YoY); H1 down 84.38%, a direct outcome of deleveraging and balance-sheet repair.
- Earnings traction improving: Q2 PAT rose 23.53% YoY to ₹102.11 mn; H1 PAT up 15.69% to ₹356.92 mn, with EPS up 12.50% in Q2 and 7.76% in H1, demonstrating quality of earnings, not just cost-led gains.
- Operating flywheel turning: Higher gross profit (Q2 +368.64%, H1 +355.78%) alongside lower opex indicates a structurally stronger unit-economics profile and capacity to reinvest without margin dilution.
- Positive read-through for cash generation: The combination of near-50% quarterly EBITDA margin and near-zero finance cost enhances free-cash-flow potential and supports continued discipline in capital allocation.
- Strong operating turnaround in Q2:
Revenue from Operations rose 79.80% YoY in Q2 to ₹278.31 mn, reflecting stronger realisations and a richer mix. H1 was lower by 5.97% YoY due to deliberate portfolio rationalisation and timing effects, with the Q2 exit run-rate pointing to a healthier base for the second half. - Deleveraging continues:
Non-current borrowings ₹2,290.4 million and current borrowings ₹520.1 million vs FY25; finance cost down 84.38% YoY in H1 to ₹14.27 million (near-zero in Q2).
Strategic Updates
- Operating leverage now visible: Higher gross profit and lower opex are translating into sustainably stronger unit economics, with room to reinvest without margin dilution.
- Balance sheet optionality: With finance costs sharply lower and leverage reduced versus FY25, the Company is better positioned to normalise working-capital cycles and fund growth organically.
- Execution priorities for H2: Deepen high-margin product lines, tighten cash conversion, and maintain conservative funding while pursuing selective, returns-accretive opportunities.
Management Outlook:
“This is the first full quarter with the new leadership playbook at work where results are visible in the margin reset, the EBITDA swing, and the near-elimination of finance costs. Gross Profit rose to ₹155.25 million in Q2 FY26 (↑476% YoY) and ₹180.58 million in H1 FY26 (↑1,093% YoY). We will carry this cadence into H2, compounding free cash and investing where returns are highest. This quarter signals a clear strategic inflection for VGL; a cleaner balance sheet and a higher-quality margin profile driven by sharper execution. We simplified the portfolio and used the proceeds, alongside internal cash generation, to retire debt and cut our financing burden to near zero. With Q2 EBITDA margin at almost 57% and gross margin at 66%, our focus now is simple: compound free cash flow, keep returns above the cost of capital through cycles, and invest with discipline in the categories and customer cohorts that matter.” – Mr. Jaimin Gupta, Chairman & Managing Director
Investors can access the detailed Unaudited Standalone Financial Results on the Company’s website, https://varveeglobal.com/, or on the websites of BSE (http://www.bseindia.com) and NSE (http://www.nseindia.com).
About VARVEE Global Limited & TAM:
Headquartered in Ahmedabad, Varvee Global Limited (previously known as Aarvee Denims & Exports Ltd.). is a leading integrated textile manufacturer offering a comprehensive range of denim, non-denim, shirting, and suiting fabrics. Operating primarily from its Narol facility, Varvee Global Limited delivers end-to-end in-house capabilities, from yarn production to finishing, ensuring consistency in quality and flexibility in supply. Over three decades, Varvee Global Limited has built a vertically integrated platform serving domestic and international markets. Following a strategic restructuring and leadership transition in 2025, Varvee Global Limited now operates from its high-capability Narol unit, with a renewed focus on operational efficiency, cost optimisation, and technology-led supply chain enhancements. The Company achieved a debt-free status in June 2025, providing a stronger capital foundation to execute its revival plan. The Indian textile market, valued at USD 146.55 billion in 2024, is projected to reach USD 213.51 billion by 2033, with domestic demand and exports expected to hit USD 250 billion and USD 100 billion, respectively, by 2030–31. Within this, India’s denim industry has an installed capacity of 1,700 million meters, producing around 1,000 million meters annually (60–70% utilization), and the denim apparel market is forecast to grow from USD 1.14 billion in 2024 to USD 1.83 billion by 2033 at a 5.04% CAGR, with other estimates projecting USD 9.15 billion by 2026 at a 14% CAGR. Varvee Global Limited’s strategy is centred on expanding into emerging markets, diversifying into value-added fabrics, and aligning with global sourcing trends to capture new opportunities in both fashion and industrial textile segments. With a heritage of manufacturing excellence, a restructured balance sheet, and a future-ready operational model, Varvee Global Limited is positioning itself for sustainable value creation in the textile industry. (Sources: Wazir Advisors, IMARC Group, MarkWide Research, IJIRT, PIB, and Henry Textile).
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