GHCL Textiles targets Rs 2,500 crore FY30 revenue expansion

GHCL Textiles targets about Rs 2,500 crore of revenue and a 15% to 18% EBITDA margin by FY30, compared with Rs 1,335 crore of revenue and a 12% margin in FY26. The plan is supported by completed capacity additions and further spending on spindles, knitting, solar power and fabric processing through FY29.

How does GHCL Textiles plan to reach Rs 2,500 crore revenue by FY30?

GHCL Textiles plans to pursue the FY30 target through vertical integration, specialised yarn, green energy and operational excellence. Vertical integration means extending from yarn into knitted, woven and dyed fabrics, while the specialised-yarn strategy is intended to raise the share of value-added and premium products. Management has set the FY30 revenue target at about Rs 2,500 crore and the earnings before interest, tax, depreciation and amortisation, or EBITDA, margin target at 15% to 18%.

The FY30 target is about Rs 1,165 crore above FY26 revenue of Rs 1,335 crore. Revenue increased from Rs 1,037 crore in FY23 to Rs 1,060 crore in FY24, Rs 1,168 crore in FY25 and Rs 1,335 crore in FY26. EBITDA margin rose over the same period, from 7% in FY23 to 8% in FY24, 10% in FY25 and 12% in FY26.

Green energy is intended to expand renewable capacity to 81 megawatts from 65 megawatts and meet up to 75% of energy needs. The operational-excellence lever covers focused execution and continuous improvement intended to reduce costs and provide consistent quality at a larger scale.

What investments has GHCL Textiles completed so far?

GHCL Textiles says it has already invested about Rs 675 crore under a memorandum of understanding with the Tamil Nadu government covering Rs 1,035 crore of investment. The presentation also identifies Rs 300 crore of additional investment, which aligns with the disclosed FY29 fabric-processing project at Virudhunagar.

In spinning, GHCL Textiles added 65,000 spindles since 2023 at a capital outlay of Rs 415 crore, taking its capacity to 2.25 lakh spindles. Yarn sales volume rose from 36,200 metric tonnes in FY25 to 40,100 metric tonnes in FY26, while yarn revenue increased from Rs 1,071 crore to Rs 1,179 crore.

GHCL Textiles added 15 knitting machines in Q4 FY26 and six machines in Q2 FY27, spending Rs 15 crore and taking its total to 21 machines. Knitted-fabric sales volume increased from 402 metric tonnes in Q2 FY26 to 922 metric tonnes in Q2 FY27. Fabric revenue rose to Rs 73 crore from Rs 38 crore, and fabric's share of revenue increased to 16.4% from 11.4%.

The company also added 38 megawatts of solar capacity since 2022 at a capital outlay of Rs 140 crore, bringing renewable-energy capacity to 65 megawatts. That completed capacity is 16 megawatts below the 81-megawatt level in the FY30 strategy, with an 11-megawatt ground-mounted project and a five-megawatt rooftop proposal disclosed for the intervening period.

What projects are underway before FY28?

GHCL Textiles is adding 19 knitting machines by Q3 FY27, which would increase the total to 40 machines from 21. Total capital expenditure for the 19 machines is Rs 7 crore. The expansion follows the increase in fabric revenue to Rs 73 crore in Q2 FY27 from Rs 38 crore in Q2 FY26.

GHCL Textiles is also developing an 11-megawatt ground-mounted solar project with a Rs 32 crore outlay and expected commissioning by December 2026. Management estimates annual savings of about Rs 6 crore in power costs. If commissioned on schedule, the project would raise renewable capacity to 76 megawatts before the separate FY28 rooftop addition.

Cash deployment in H1 FY27 included Rs 52 crore of growth capital expenditure, or 36% of Rs 143 crore deployed. Debt repayment was Rs 74 crore, or 51%, while working capital and other uses accounted for Rs 12 crore and dividends for Rs 6 crore. At September 30, 2026, gross debt was Rs 60 crore and cash and equivalents were Rs 12 crore.

What are GHCL Textiles’ FY28 and FY29 expansion plans?

GHCL Textiles plans to add 58,000 spindles and five megawatts of rooftop solar capacity in FY28. The project cost is Rs 410 crore, including margin money for working-capital requirements, and management expects annual revenue of Rs 400 crore from it. The spindle addition follows the 65,000 spindles added since 2023.

For FY29, GHCL Textiles plans woven and knitted fabric-processing facilities at PM MITRA Park in Virudhunagar, Tamil Nadu, at a project cost of Rs 300 crore. The company was allotted 56 acres in Q1 FY27 and states that payment for the land has been made. The facilities would add processing capacity alongside yarn and knitting operations.

Park infrastructure is expected to be developed by FY28, while GHCL Textiles intends to develop its plant in parallel with that work. Management expects a seamless operational rollout by FY29. This timing makes the Virudhunagar project the last major disclosed capacity stage before the FY30 revenue and EBITDA-margin target.

What operating trends support the expansion strategy?

GHCL Textiles reported capacity utilisation of 99% in FY25 and FY26, compared with 94% in FY23 and 98% in FY24. Utilisation was also 99% in Q1 FY27 and Q2 FY27. The disclosed capacity additions are therefore planned alongside high reported utilisation of the existing manufacturing base.

Fabric has increased as a share of sales. Fabric revenue rose from Rs 97 crore in FY25 to Rs 157 crore in FY26, lifting its share of total revenue from 8.3% to 11.7%. In Q2 FY27, total revenue was Rs 446 crore against Rs 339 crore in Q2 FY26, while fabric revenue rose by Rs 35 crore.

The revenue base remains primarily domestic. Domestic revenue was Rs 1,200 crore in FY26, while exports were Rs 135 crore, representing 10.1% of total revenue. In Q2 FY27, domestic revenue was Rs 412 crore and exports were Rs 34 crore, with the export share declining to 7.7% from 8.8% in Q2 FY26.

Conclusion

GHCL Textiles’ FY30 strategy links a revenue target of about Rs 2,500 crore and a 15% to 18% EBITDA margin with greater spinning capacity, a larger fabric business, renewable-energy additions and new fabric-processing facilities. The reported FY26 base was Rs 1,335 crore of revenue and a 12% EBITDA margin, while fabric rose to 11.7% of annual revenue from 8.3% in FY25.

The next disclosed milestones are 19 additional knitting machines by Q3 FY27, commissioning of the 11-megawatt solar project by December 2026, the Rs 410 crore FY28 spindle-and-solar project and the FY29 Virudhunagar rollout. Management’s expected Rs 400 crore of annual revenue from the FY28 project and the development of PM MITRA Park infrastructure by FY28 are the stated points to monitor.