Vardhman Textiles faces US tariff volatility, capacity expansion

Vardhman Textiles Limited reported Q1 FY26 operational performance at or slightly better than the previous quarter, despite persistent challenges in the spinning industry.

New U.S. tariffs on textile imports caused volatility, leading to a visible slowdown in new order placements from the U.S. market. However, the company's diversified geographic exposure to markets including the UK, EU, Japan, South America, Egypt, Australia, and domestic India provided a buffer, enabling healthy capacity utilization.

The company's fabric expansion remains on schedule, expected to contribute meaningfully from Q3 FY26, with mechanical recycling and Melange yarn capacity expansions now operational.