GHCL Textiles delivered exceptional financial performance in the June 2026 quarter, with standalone net profit surging 191.05% to ₹39.35 crore compared to ₹13.52 crore in the corresponding quarter of the previous year. According to reports from Business Standard, this represents a remarkable turnaround in the company's profitability metrics during the first quarter of fiscal year 2026. The Board of Directors approved these unaudited financial results on July 30, 2026, with the results prepared in compliance with Ind AS 34 and Regulation 33 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
The company's sales revenue demonstrated robust growth of 52.73%, rising to ₹408.94 crore in Q1 FY2026 from ₹267.75 crore in the same quarter of the previous fiscal year. As reported by Business Standard, this significant revenue expansion was driven by higher sales volumes and a significant shift in product mix towards higher-margin fabrics. The company's total income stood at ₹409.60 crore, while total expenses were ₹356.81 crore, with the substantial rise in revenue from operations more than offsetting the decline in other income to ₹0.66 crore from ₹2.32 crore in Q1FY26.
Operating profit margin (OPM) improved to 16.90% in the June 2026 quarter compared to 11.20% in the corresponding quarter of the previous year. According to the financial data reported by Business Standard, this 15.7 percentage point improvement in operating margins indicates enhanced operational efficiency and better cost management during the quarter. EBITDA more than doubled to ₹690M from ₹300M in the year-ago quarter, while EBITDA margin expanded significantly to 16.9% from 11.2% YoY, reflecting improved operating leverage and cost efficiencies. Earnings per share (EPS) increased to ₹4.12 from ₹1.41 in the year-ago quarter, demonstrating strong bottom-line performance across key metrics.
A key driver of the margin expansion was the increased contribution from fabric sales, which now constitute 16% of revenue compared to 9% in Q1FY26. According to the company's latest financial disclosure, this significant increase in fabric sales was driven by higher sales of both knitted fabric sales volume surged to 898 MT from 247 MT, while greige fabric sales grew to 59 lakh meters from 36 lakh meters. Consequently, the revenue share from yarn decreased to 84% from 91% in the same period last year. CEO Marshal Sonavane stated that Q1FY27 was favorable for the spinning industry, driven by sequential improvement in cotton and yarn spreads, with the company remaining well-positioned to benefit from the improved operating environment.
Capacity utilization remained robust at 99% in Q1FY27, consistent with recent quarters, while sales volume for yarn rose to 10.5 thousand MT from 8.4 thousand MT in Q1FY26. The company continues to emphasize operational excellence through renewable energy adoption, currently having 65 MW of green energy capacity, meeting around 70% of its energy needs. An additional 11 MW green energy capacity expansion is underway, expected to be completed in Q3FY27, which will further increase renewable energy contribution and reduce energy costs. The long-term target is to enhance the green energy portfolio to 75 MW, catering to up to 75% of energy requirements. Phase 1 of the knitting expansion is operational, with Phase 2 on track for commissioning in FY27.
