Vardhman Textiles Limited (VTL) AI Stock Analysis

Vardhman Textiles Limited

(NSE:VTL)

Select Model

Rating:63Neutral

Price Target:INR 518.00▲(4.27% Upside)

Action:downgraded

Date:08/10/26

The score is supported most by strong balance sheet quality and solid top-line growth, but it is held back by weak cash flow and softer short-term technical momentum. Valuation is only fair, so it does not provide a strong boost.

Positive Factors

Conservative Balance SheetLow and improving leverage, with debt-to-equity near 0.18 in 2026 and steadily growing equity, gives VTL financial resilience. That cushion can help the integrated textile manufacturer absorb industry downturns while preserving capacity to invest and serve customers.

Negative Factors

Uneven Cash GenerationCash generation has been uneven: operating cash flow suffered a sharp outflow in 2024, and free cash flow turned negative again in 2026 after positive years. This weakens cash conversion visibility and may constrain internally funded investment during cyclical textile conditions.

Vardhman Textiles Limited (VTL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 140.73B
Dividend Yield: 1.03%
Average Volume (3M): 40.35K
Price to Earnings (P/E): 16.3
Beta (1Y): 0.81
Revenue Growth: 3.29%
EPS Growth: -1.43%
Country: India
Employees: 24,097
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Vardhman Textiles Limited Business Overview & Revenue Model

Company Description

Vardhman Textiles Limited is a vertically integrated textile manufacturer engaged in producing cotton yarn, synthetic yarn, woven fabric, sewing thread, acrylic fibre, and garments. The company operates across the textile value chain, from raw materi...

Vardhman Textiles Limited Financial Statement Overview

Summary

Strong revenue growth and expanding gross margins support the score, while a solid balance sheet with low leverage is a clear positive. Cash flow remains the main drag because operating cash coverage weakened and free cash flow turned negative.

Income Statement

72Positive

Balance Sheet

85Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	101.86B	98.69B	97.85B	95.05B	101.37B	96.22B
Gross Profit	39.33B	44.23B	40.42B	35.73B	39.11B	47.98B
EBITDA	16.44B	15.12B	13.21B	10.38B	13.81B	23.12B
Net Income	8.48B	7.45B	8.83B	6.32B	7.95B	15.47B
Balance Sheet
Total Assets	0	138.66B	124.32B	119.81B	113.33B	109.79B
Cash, Cash Equivalents and Short-Term Investments	10.90B	10.90B	5.52B	2.80B	15.15B	7.23B
Total Debt	0	18.55B	12.39B	17.91B	16.78B	19.88B
Total Liabilities	-105.88B	32.78B	24.66B	27.93B	26.81B	31.38B
Stockholders Equity	105.88B	105.14B	98.96B	91.00B	85.63B	77.04B
Cash Flow
Free Cash Flow	-2.10B	-6.30B	6.11B	-13.39B	12.31B	9.26B
Operating Cash Flow	7.16B	11.08B	16.44B	-10.55B	18.53B	14.45B
Investing Cash Flow	-7.75B	-15.16B	-8.92B	11.04B	-14.45B	-8.99B
Financing Cash Flow	631.90M	3.98B	-7.33B	-897.10M	-3.99B	-5.71B

Vardhman Textiles Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price496.80

Price Trends

50DMA552.52Negative

100DMA586.04Negative

200DMA558.47Negative

Market Momentum

MACD-16.72Positive

RSI31.26Neutral

STOCH23.43Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VTL, the sentiment is Negative. The current price of 496.80 is below the 20-day moving average (MA) of 518.99, below the 50-day MA of 552.52, and below the 200-day MA of 558.47, indicating a bearish trend. The MACD of -16.72 indicates Positive momentum. The RSI at 31.26 is Neutral, neither overbought nor oversold. The STOCH value of 23.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VTL.

Vardhman Textiles Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:VTL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:KPRMILL	76Outperform	INR 381.12B	36.66	―	0.45%	6.43%	24.09%
IN:WELSPUNLIV	68Neutral	INR 207.09B	75.75	―	0.05%	5.02%	23.13%
IN:ARVIND	66Neutral	INR 133.61B	28.18	―	0.92%	19.08%	10.88%
IN:VTL	63Neutral	INR 140.94B	16.32	―	1.03%	3.29%	-1.43%
IN:ICIL	61Neutral	INR 87.70B	58.02	―	0.34%	5.30%	-26.76%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:TRIDENT	51Neutral	INR 107.93B	27.14	―	2.36%	-2.45%	-10.11%

* General Sector Average

Performance Comparison

IN:VTL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:VTL	Vardhman Textiles Limited	486.70	52.48	12.09%
IN:ARVIND	Arvind Limited	491.15	176.27	55.98%
IN:ICIL	Indo Count Industries Limited	442.80	162.46	57.95%
IN:KPRMILL	K.P.R. Mill Limited	1115.00	64.59	6.15%
IN:TRIDENT	Trident Limited	21.18	-6.88	-24.51%
IN:WELSPUNLIV	Welspun Living Limited	219.20	90.23	69.96%

Vardhman Textiles Limited Corporate Events

Vardhman Textiles Closes Trading Window Ahead of September Results

Sep 29, 2026

Vardhman Textiles Limited, based in Ludhiana, Punjab, operates in the textile industry with a diversified portfolio spanning yarns, fabrics, garments, threads, fibres and steels. Established in 1965, the company focuses on delivering excellence acros...

Vardhman Textiles Sets Record Date and Book Closure for FY26 Dividend

Aug 20, 2026

Vardhman Textiles Limited has set 28 August 2026 as the record date to determine shareholders eligible for a dividend for the financial year ended 31 March 2026, subject to approval at the upcoming Annual General Meeting. If the dividend is declared,...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 09, 2026

Vardhman Textiles Limited AI Stock Analysis