GHCL Textiles revenue rose 32% despite Rs 26.78 crore loss

GHCL Textiles Limited reported revenue from operations of Rs 445.53 crore in the quarter ended September 30, 2026, about 32% above a year earlier, and net profit of Rs 35.84 crore despite a Rs 26.78 crore exceptional loss from an August warehouse fire. Profit before exceptional items and tax rose to Rs 74.48 crore from Rs 21.72 crore.

Why did GHCL Textiles' September-quarter revenue increase?

GHCL Textiles reported Rs 445.53 crore in revenue from operations for the September 2026 quarter, compared with Rs 338.04 crore a year earlier and Rs 408.94 crore in the preceding June quarter. The year-on-year increase was Rs 107.49 crore, or about 32%, while the sequential increase was Rs 36.59 crore. GHCL Textiles reports textiles as its only operating segment under Indian Accounting Standard 108.

Total income reached Rs 445.96 crore, against Rs 339.29 crore in the September 2025 quarter, as other income declined to Rs 0.43 crore from Rs 1.25 crore. Costs also increased with sales: raw-material consumption rose to Rs 274.52 crore from Rs 233.82 crore, while other expenses increased to Rs 38.51 crore from Rs 31.79 crore. Power, fuel and water expense was Rs 16.81 crore versus Rs 16.99 crore.

How did the fire loss affect GHCL Textiles' profit?

GHCL Textiles recorded a Rs 26.78 crore exceptional loss in the September 2026 quarter after a fire at its godown on Madurai Bye Pass Road in Tuticorin on August 1, 2026 damaged inventories. The charge reduced profit before tax to Rs 47.70 crore from Rs 74.48 crore before exceptional items. GHCL Textiles has lodged an insurance claim, but said an insurance receivable will be recognised only after the insurer approves the claim.

Even after the charge, net profit was Rs 35.84 crore, up from Rs 16.01 crore in the September 2025 quarter. This was lower than the Rs 39.35 crore earned in the June 2026 quarter, when no exceptional item was reported. Profit before exceptional items and tax increased from Rs 21.72 crore a year earlier and Rs 52.79 crore sequentially.

Tax expense was Rs 11.86 crore, compared with Rs 5.71 crore a year earlier, while basic and diluted earnings per share were Rs 3.75 against Rs 1.68. For the six months ended September 30, 2026, net profit rose to Rs 75.19 crore from Rs 29.53 crore, including the Rs 26.78 crore exceptional loss. Six-month profit before tax was Rs 100.49 crore, compared with Rs 39.83 crore in the corresponding period.

What do GHCL Textiles' cash flow and balance sheet show?

GHCL Textiles generated Rs 130.36 crore of net operating cash flow in the six months ended September 30, 2026, versus Rs 58.95 crore in the prior-year period. Cash flow generated from operations was Rs 150.27 crore, up from Rs 65.45 crore, and included a Rs 54.71 crore cash release from inventories. That compared with a Rs 4.80 crore inventory-related release in the six months ended September 2025.

Trade receivables increased by Rs 30.99 crore during the latest six-month period, compared with a Rs 15.12 crore increase a year earlier, partly offsetting the inventory movement. The cash-flow statement added back the Rs 26.78 crore exceptional loss in reconciling profit before tax to cash generation. Net investing outflow was Rs 46.78 crore, including Rs 51.78 crore spent on property, plant, equipment, capital work-in-progress and intangible assets.

At September 30, 2026, total assets were Rs 1,855.08 crore, compared with Rs 1,870.43 crore at March 31, 2026. Inventories fell to Rs 339.63 crore from Rs 421.12 crore, while trade receivables rose to Rs 201.69 crore from Rs 170.59 crore. Total equity increased to Rs 1,571.72 crore from Rs 1,502.49 crore, and total liabilities declined to Rs 283.36 crore from Rs 367.94 crore.

Current borrowings fell to Rs 15.36 crore from Rs 134.22 crore over the same period, while non-current borrowings were Rs 44.44 crore at September 30. In the cash-flow statement, GHCL Textiles reported Rs 50 crore of long-term borrowing proceeds and Rs 123.82 crore of short-term borrowing repayments. Cash and cash equivalents closed at Rs 0.43 crore, compared with Rs 0.69 crore at the beginning of the financial year.

What expansion spending has GHCL Textiles approved?

GHCL Textiles' board approved an additional capital budget of about Rs 415.25 crore for financial year 2026-27, mainly to establish a new spinning unit with capacity of 58,368 spindles at Manaparai, Tamil Nadu. The announcement of the additional budget accompanied the board's approval of the September-quarter results on November 5, 2026. The filing does not provide a construction schedule or commissioning date for the Manaparai unit.

Separately, GHCL Textiles has been allotted 56.12 acres at Virudhunagar, Tamil Nadu, under the PM MITRA Scheme for a proposed textile manufacturing facility. It paid Rs 31.05 crore for the land allotment during the September quarter. Execution of the 99-year lease deed remained pending procedural completion by SIPCOT as of September 30, 2026.

GHCL Textiles said the proposed Virudhunagar facility is expected to benefit from integrated infrastructure, including common effluent treatment plant facilities, and government incentives. It described that facility as supporting future capacity expansion and its long-term growth strategy. These disclosed plans are separate from the Manaparai spinning-unit budget, with the filing identifying distinct locations and not specifying whether their investments overlap.

Conclusion

GHCL Textiles' September-quarter results combined a Rs 107.49 crore year-on-year increase in revenue with a Rs 52.76 crore rise in profit before exceptional items and tax, despite the Rs 26.78 crore inventory loss from the August 1 fire. Six-month operating cash flow increased by Rs 71.41 crore from the prior-year period, while current borrowings fell by Rs 118.86 crore from March 31, 2026.

The next disclosed matters to watch are the insurer's assessment and settlement of the Tuticorin fire claim, for which no receivable had been recorded by September 30, 2026, and progress on the approximately Rs 415.25 crore Manaparai spinning project. Completion of the 99-year Virudhunagar land lease also remains pending procedural completion by SIPCOT.