Vama Woven Fabric’s FY26 growth relied on one buyer, supplier

Vama Woven Fabric Limited (Vama Woven Fabric) reported Rs 214.6171 crore in revenue from operations for FY26, but Customer 1 generated Rs 136.6719 crore, or 63.68%, of that revenue. Supplier 1 accounted for Rs 127.8867 crore, or 68.49%, of gross purchases, with both shares materially higher than in FY25 and FY24.

What does Vama Woven Fabric’s FY26 concentration show?

Vama Woven Fabric’s FY26 revenue and purchases were more concentrated in one counterparty than in either of the previous two financial years. Customer 1 accounted for 63.68% of FY26 net revenue, compared with 49.48% in FY25 and 36.43% in FY24. Supplier 1 accounted for 68.49% of FY26 gross purchases, compared with 22.58% in FY25 and 13.14% in FY24.

The company did not disclose the names of Customer 1 or Supplier 1 because it had not obtained no-objection certificates or consent letters from the counterparties. The customer percentages are calculated as customer sales divided by total revenue from operations, while supplier percentages are calculated as materials purchased divided by the cost of total raw materials and traded goods purchased. These are different denominators, so the customer and supplier percentages measure separate forms of concentration.

The rise in the leading shares was accompanied by higher concentration among the disclosed top-10 groups. The top 10 customers accounted for 96.84% of FY26 revenue, up from 94.86% in FY25 and 92.57% in FY24. The top 10 suppliers represented 100.00% of FY26 gross purchases, against 84.04% in FY25 and 74.88% in FY24; the company notes that the top-10 supplier and customer groups are considered separately for each period.

Why did customer dependence rise during FY26 growth?

Customer dependence rose because sales to Customer 1 increased more than total revenue from operations during FY26. Vama Woven Fabric’s revenue from operations increased by Rs 137.169 crore, from Rs 77.4481 crore in FY25 to Rs 214.6171 crore in FY26. Revenue from Customer 1 increased by Rs 98.3497 crore over the same period, from Rs 38.3222 crore to Rs 136.6719 crore.

The number of customers generating revenue fell to 64 in FY26 from 77 in FY25, although it remained above the 67 customers reported for FY24. Average revenue per customer, defined by the company as revenue from operations divided by the number of customers generating revenue in the period, rose to Rs 3.3534 crore in FY26 from Rs 1.0058 crore in FY25 and Rs 41.59 lakh in FY24. The operational data does not disclose sales contracts, order durations or the product purchases of individual customers.

Vama Woven Fabric’s revenue mix also changed in FY26. Trading revenue was Rs 131.7477 crore, or 61.39% of total FY26 revenue, compared with Rs 22.5233 crore, or 29.08%, in FY25. Revenue from woven fabric and woven bags combined was Rs 82.7783 crore, or 38.57% of FY26 revenue, compared with Rs 54.9222 crore, or 70.91%, in FY25. The source does not link Customer 1 to trading, woven fabric, woven bags, or any other product category, so the reason for that customer’s higher contribution is not identified.

How dependent was Vama Woven Fabric on its supply base?

Vama Woven Fabric relied on Supplier 1 for more than two-thirds of FY26 gross purchases. Supplier 1 represented Rs 127.8867 crore and 68.49% of gross purchases in FY26, compared with Rs 15.8588 crore and 22.58% in FY25. The disclosed amount purchased from Supplier 1 was therefore Rs 112.0279 crore higher in FY26 than in FY25.

The remaining leading suppliers had substantially smaller FY26 shares. Supplier 2 represented 10.20% of gross purchases, Supplier 3 represented 7.94%, and Supplier 4 represented 4.53%; together, the three accounted for 22.67%. The top 10 suppliers together represented Rs 186.7328 crore and 100.00% of FY26 gross purchases, based on the company’s stated gross-purchase calculation.

The company manufactures woven polyethylene and polypropylene bags and describes polypropylene, or PP, and high-density polyethylene, or HDPE, as materials used in products including fabric and rolls. Vama Woven Fabric states that it intends to incorporate recycled PP and HDPE and to recycle production waste into polypropylene granules. However, the source provides no FY26 recycled-material quantity, purchasing value, alternate-supplier programme, or procurement target that would demonstrate a reduction in the 68.49% Supplier 1 share.

What would need to change for concentration to decline?

Customer concentration would decline if revenue outside Customer 1 grew faster than Customer 1 sales, or if Customer 1 sales fell relative to total revenue from operations. Vama Woven Fabric reported domestic FY26 revenue of 47.93% from Daman and Diu and Dadra and Nagar Haveli, 39.60% from Maharashtra, and 12.46% from Gujarat. The state table does not match customers to locations, so those regional shares do not establish diversification away from Customer 1.

Supplier concentration would decline if the share of purchases from suppliers other than Supplier 1 increased relative to gross purchases. Vama Woven Fabric’s business strategy includes fostering close collaboration with suppliers, maximising closed material cycles, and recycling production waste. The disclosure does not specify supplier contract durations, minimum supply commitments, qualified alternative vendors, or a date by which recycled inputs are expected to change the purchasing mix.

FY26 profitability did not move in line with revenue margins. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased to Rs 17.8641 crore from Rs 10.3657 crore in FY25, while EBITDA margin declined to 8.32% from 13.38%. Profit after tax rose to Rs 11.5451 crore from Rs 6.8376 crore, but profit-after-tax margin declined to 5.38% from 8.83%, showing that higher revenue and counterparty concentration do not alone determine reported margins.

Conclusion

Vama Woven Fabric’s FY26 revenue increase of Rs 137.169 crore coincided with Customer 1 contributing 63.68% of revenue and Supplier 1 contributing 68.49% of gross purchases. The corresponding FY25 shares were 49.48% and 22.58%, while the top 10 customers and suppliers accounted for 96.84% and 100.00%, respectively, in FY26.

The next reported periods will show whether Vama Woven Fabric’s plans to use recycled PP and HDPE, recycle production waste and collaborate with suppliers lead to a measurable change in purchasing concentration. Customer additions, supplier diversification measures and later concentration percentages remain unresolved because the FY26 disclosure gives no alternate-sourcing timetable or customer-specific sales plan.