GHCL Textiles Reports Strong Q1 FY27 Results with 191% Growth in Net Profit

Premium yarn and fabric manufacturer reports strong Q1 FY27 growth, advances knitting expansion and renewable energy initiatives.

GHCL Textiles, a manufacturer of premium yarns and fabrics, has reported strong financial performance for the first quarter of FY27, driven by higher revenue, improved profitability, and continued progress in its value-added textiles strategy. The company also highlighted advancements in capacity expansion, vertical integration, and renewable energy adoption.

Revenue and Profit Register Strong Growth

For the quarter ended June 30, 2026, GHCL Textiles reported:

• Total Revenue: ₹410 crore, up 52% from ₹270 crore in Q1 FY26.
• EBITDA: ₹70 crore, an increase of 116% compared to ₹32 crore in the corresponding quarter last year.
• Net Profit (PAT): ₹39 crore, rising 191% from ₹14 crore in Q1 FY26.

Expansion and Value-Added Strategy Progress

The company stated that Phase 1 of its knitting capacity expansion is now operational, while Phase 2 remains on schedule. Fabric sales volumes also increased significantly during the quarter, positioning the company to benefit from future industry demand.

GHCL Textiles reported that the contribution of its vertically integrated business increased from 9% of revenue in Q1 FY26 to 16% in Q1 FY27, reflecting continued focus on value-added products.

Sustainability and Renewable Energy

The company currently operates 65 MW of green energy capacity, meeting around 70% of its energy requirements. An additional 11 MW renewable energy project is under development, which is expected to further reduce energy costs while supporting the company's sustainability and ESG objectives.

Management Commentary

Commenting on the quarterly performance, Mr. R. S. Jalan, Non-Executive Director, GHCL Textiles Ltd., said the company's Q1 FY27 performance reflects consistent execution of its strategy to build a differentiated value-added textiles business. He noted that operational discipline, cost efficiency, working capital optimisation, scale, and vertical integration continue to strengthen the company's long-term growth strategy.

He added that the increasing contribution from vertically integrated operations and ongoing investments in renewable energy are supporting both competitiveness and sustainability.

Key Business Highlights

• Revenue increased 52% year-on-year to ₹410 crore.
• EBITDA grew 116% to ₹70 crore.
• Net profit rose 191% to ₹39 crore.
• Fabric sales volumes recorded significant sequential growth.
• Phase 2 knitting machine commissioning remains on track.
• 11 MW renewable energy capacity is under development.
• Continued focus on operational efficiency, working capital management, and return on capital employed (RoCE).