Revenue rises 31% to Rs 4.46 billion, driven by demand and value-added products.
GHCL Textiles has reported strong financial performance for the second quarter and first half of FY27, with adjusted net profit rising 249 per cent year-on-year to Rs 560 million, compared with Rs 160 million in Q2 FY26. Revenue increased 31 per cent to Rs 4.46 billion from Rs 3.39 billion in the corresponding quarter last year.
EBITDA rose 141 per cent to Rs 920 million, compared with Rs 380 million in Q2 FY26, reflecting improved operational performance despite volatile raw material prices
For the first half of FY27, the company’s revenue grew 40 per cent to Rs 8.56 billion from Rs 6.09 billion in H1 FY26. EBITDA increased 129 per cent to Rs 1.62 billion, while adjusted net profit surged 223 per cent to Rs 950 million from Rs 300 million in the corresponding period.
Marshal Sonavane, CEO, GHCL Textiles, said the textile industry faced volatile raw material conditions during the quarter, with elevated cotton prices due to tighter supplies and polyester prices reaching multi-year highs. However, timely cotton procurement, steady domestic demand and an expanding value-added product portfolio supported the company’s growth.
The company also reported progress in its vertical integration strategy. Its 25,000-spindle manufacturing unit has reached full capacity, while knitting operations are being expanded. Land has been allotted at PM MITRA Park for establishing fabric processing facilities.
GHCL Textiles’ board has approved the next phase of spinning capacity expansion along with additional rooftop solar installations to strengthen its renewable energy portfolio.
The contribution of fabrics to total revenue increased to 16.4 per cent in Q2 FY27 from 11.4 per cent in Q2 FY26, supported by higher sales volumes of knitted and greige fabrics.
The company plans to expand its presence in value-added yarns, knitted and woven fabrics, fabric processing and ready-to-cut materials while improving operational efficiency and renewable energy utilisation.
The reported net profit figures for Q2 and H1 FY27 have been adjusted for an exceptional loss of Rs 270 million, or Rs 200 million after tax, arising from a fire incident at the company’s Tuticorin godown.