GHCL Textiles Limited Q2 FY27 adjusted profit rises 249%

GHCL Textiles Limited reported adjusted net profit of Rs 56 crore in Q2 FY27, up 249% year-on-year, as standalone revenue rose 31% to Rs 446 crore. The Q2 FY27 profit excludes a Rs 27 crore exceptional loss, or Rs 20 crore net of taxes, from a fire at the Tuticorin Godown.

How did GHCL Textiles perform in Q2 FY27?

GHCL Textiles increased standalone revenue, EBIDTA and adjusted net profit in the quarter ended September 30, 2026. Revenue rose to Rs 446 crore from Rs 339 crore in Q2 FY26, while EBIDTA, or earnings before interest, depreciation, tax and amortisation, increased to Rs 92 crore from Rs 38 crore.

GHCL Textiles reported adjusted net profit of Rs 56 crore for Q2 FY27, compared with Rs 16 crore in the corresponding quarter ended September 30, 2025. The 249% year-on-year increase in adjusted profit was higher than the 141% increase in EBIDTA and the 31% increase in revenue for the same period.

The results are presented as standalone performance, rather than as a consolidated measure. GHCL Textiles described the Rs 56 crore Q2 FY27 result as adjusted net profit, and its announcement does not provide an unadjusted net-profit figure alongside the adjusted amount.

What was the impact of the Tuticorin Godown fire?

GHCL Textiles said its Q2 FY27 and H1 FY27 net-profit figures were adjusted for a Rs 27 crore exceptional loss resulting from a fire at the Tuticorin Godown. The company said the loss was Rs 20 crore net of taxes, making the adjustment relevant to the reported adjusted profits of Rs 56 crore for Q2 and Rs 95 crore for H1.

The November 5, 2026 release does not state the date of the fire, the assets or inventory affected, insurance recoveries, or whether operations were disrupted after September 30, 2026. It also does not give net-profit figures after recognition of the exceptional loss.

The adjusted earnings increase was reported during what Chief Executive Officer Marshal Sonavane described as a volatile raw-material environment. He said cotton prices remained elevated because of tighter supplies, while the polyester value chain reached multi-year highs and cautious buying weighed on the market toward the end of Q2 FY27.

How did H1 FY27 compare with last year?

GHCL Textiles reported H1 FY27 standalone revenue of Rs 856 crore, up 40% from Rs 609 crore in H1 FY26. The increase of Rs 247 crore for the six months ended September 30, 2026 was larger than the Rs 107 crore rise in Q2 revenue alone.

H1 FY27 EBIDTA rose 129% to Rs 162 crore from Rs 70 crore a year earlier. Adjusted net profit increased 223% to Rs 95 crore from Rs 30 crore, a rise of Rs 65 crore under the company’s presentation that excludes the Tuticorin Godown fire loss.

The 31% Q2 revenue growth rate was below the 40% increase reported for H1 FY27, while Q2 adjusted-profit growth of 249% was above the 223% H1 rate. Both FY27 profit comparisons exclude the Rs 27 crore exceptional loss disclosed by GHCL Textiles.

What changed in GHCL Textiles' fabric business?

GHCL Textiles increased fabric’s share of revenue to 16.4% in Q2 FY27 from 11.4% in Q2 FY26, a rise of 5 percentage points. The company attributed the change to higher sales volumes of knitted fabric and griege fabric.

The higher fabric contribution coincided with management’s stated focus on a growing value-added portfolio and deeper integration into fabrics. Mr. Sonavane said timely cotton procurement, domestic-market focus and the value-added portfolio enabled growth through H1 FY27 despite the cotton and polyester cost conditions.

GHCL Textiles did not disclose fabric revenue in rupees, yarn revenue, segment-level margins or sales volumes for Q2 FY27. The 16.4% revenue share therefore shows a change in sales mix, but does not quantify fabric’s contribution to Rs 446 crore of quarterly revenue or Rs 92 crore of EBIDTA.

What expansion and energy plans has GHCL Textiles disclosed?

GHCL Textiles said its 25,000-spindle unit had reached full capacity and that it was scaling up knitting capacity. It also said land had been allotted at PM Mitra Park for fabric-processing facilities as it pursues expansion into knitted and woven fabrics, processing and eventually ready-to-cut fabric.

The board has approved the next phase of spinning expansion and additional rooftop solar capacity, although the release gives no capital-expenditure amount, commissioning date or additional spindle count. GHCL Textiles said it has 65 megawatts of green-energy capacity meeting around 70% of its energy requirements, with another 11 megawatts under development.

Mr. Sonavane said management’s strategic focus includes value-added yarns, fabric integration, green energy and operational excellence. He also cited India’s expanding free-trade-agreement network, but the announcement provides no forecast for export revenue, demand, margins or FY27 earnings.

Conclusion

GHCL Textiles reported faster growth in adjusted Q2 FY27 profit than in revenue or EBIDTA, with adjusted profit reaching Rs 56 crore and revenue reaching Rs 446 crore. The result was accompanied by a 5-percentage-point increase in fabric’s revenue share and was presented after excluding the Rs 27 crore exceptional loss from the Tuticorin Godown fire.

The next disclosed developments to watch are execution of the approved spinning expansion, the knitting-capacity scale-up, the fabric-processing project at PM Mitra Park and the 11 megawatts of green energy under development. Further disclosure on the fire’s insurance, operational and financial effects would clarify the exceptional-loss adjustment.