GHCL Textiles Reports Strong Q1 FY27 Growth

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RS Jalan, Non-Executive Director, GHCL Textiles Ltd

GHCL Textiles, a leading manufacturer of premium yarns and fabrics, has announced a strong financial performance for the first quarter of FY27, driven by higher sales, improved operational efficiency and continued focus on value-added products. The company reported significant growth in revenue and profit while advancing its expansion plans and sustainability initiatives.

Revenue for the quarter rose 52% year-on-year to ₹410 crore, compared with ₹270 crore in the corresponding quarter of the previous financial year. EBITDA more than doubled to ₹70 crore from ₹32 crore, registering a growth of 116%. Net profit increased 191% to ₹39 crore, against ₹14 crore reported in the same period last year. The company attributed the strong performance to disciplined execution, higher contribution from value-added products, operational efficiencies and continued investment in integrated manufacturing capabilities.

Commenting on the results, RS Jalan, Non-Executive Director, GHCL Textiles Ltd, said the company has continued to build a stronger and more resilient business by focusing on premium products, operational excellence and sustainable growth. He said the first phase of the knitting expansion has become operational, while work on the second phase is progressing as scheduled. The expansion is expected to enhance fabric production capacity and strengthen the company’s position in the value-added textile segment.

The company’s vertical integration strategy also delivered encouraging results during the quarter. Revenue contribution from integrated operations increased to 16% in Q1 FY27 from 9% in the corresponding quarter last year, reflecting steady progress in building a higher-value product portfolio.

Fabric sales volumes recorded strong growth during the quarter, positioning the company to benefit from improving demand across domestic and export markets. GHCL Textiles expects the additional knitting capacity to further support business growth in the coming quarters.

The company also continues to strengthen its sustainability programme. It currently operates 65 MW of renewable energy capacity, which meets nearly 70% of its total power requirement. An additional 11 MW renewable energy project is under development and is expected to reduce energy costs while supporting the company’s environmental goals. GHCL Textiles remains focused on improving operational efficiency, maintaining disciplined working capital management and enhancing returns through scale, product mix improvement and deeper integration.

GHCL Textiles is a leading manufacturer and exporter of premium cotton yarns and fabrics, with advanced manufacturing facilities in Tamil Nadu. The company supplies high-quality textile products to domestic and international markets while focusing on innovation, sustainability and operational excellence. Supported by significant renewable energy capacity, GHCL Textiles continues to reduce its environmental footprint through responsible manufacturing practices. The company also undertakes community development initiatives in healthcare, education, agriculture, women empowerment and rural development as part of its corporate social responsibility programme.