GHCL Textiles Limited — Investor Meet, 04-02-2026: Analysts/Institutional Investor Meet/Con. Call Updates

GHCL Textiles reported 9M FY26 revenue of INR960 Cr (+9% YoY) and EBITDA of INR104 Cr (+23% YoY). Q3 FY26 saw revenue at INR351 Cr and PAT at INR13 Cr, with spinning spreads tightening to INR128/kilo from INR131/kilo last quarter due to higher power costs and demand uncertainty.

Management believes the worst of spinning pressure is over, with green shoots emerging in December and cotton prices stabilizing. The company's 25,000 spindles unit operates at 98% utilization. Vertical integration is on track, with Phase-1 knitting (15 machines) completing in Q4 FY26, and Phase-2 in H1 FY27. Renewable energy projects (3MW rooftop, 10MW ground solar) are expected to save INR7-8 Cr annually.

Total capex of INR1,000 Cr is planned, with INR650 Cr already invested. The remaining INR350 Cr will be deployed over 2-3 years for fabric and processing capacities. Net debt remains low at INR41 Cr, reflecting a strong balance sheet. The company anticipates a return to 8-10% ROCE, with long-term EBITDA margins reaching 16-18% due to vertical integration and market recovery. Management is confident that the textile down cycle is ending, positioning the company for growth in FY27 and beyond.