Vama Woven Fabric: Trading Hit 61% as FY26 Margins Fell

Vama Woven Fabric Limited derived 61.39% of FY26 revenue from trading, up from 29.08% in FY25, as revenue from operations increased to Rs 214.6171 crore. The sales-mix change occurred alongside EBITDA margin falling to 8.32% from 13.38% and profit-after-tax margin falling to 5.38% from 8.83%.

How did Vama Woven Fabric’s trading business reach 61% of FY26 revenue?

Vama Woven Fabric’s trading business reached 61.39% of FY26 revenue after trading sales rose to Rs 131.7477 crore from Rs 22.5233 crore in FY25. The increase of Rs 109.2244 crore accounted for most of the Rs 137.1690 crore rise in revenue from operations, which reached Rs 214.6171 crore in FY26 from Rs 77.4481 crore a year earlier. The product-wise revenue table reports total revenue of Rs 214.6172 crore, a Rs 0.0001 crore difference from revenue from operations in the key-performance table.

The company separately reports woven fabric and woven bags as manufactured product categories. Woven fabric revenue increased to Rs 44.2664 crore in FY26 from Rs 27.2784 crore in FY25, while woven bag revenue rose to Rs 38.5119 crore from Rs 27.6438 crore. Their combined revenue was Rs 82.7783 crore, but their share of total revenue fell to 38.57% from 70.91% because trading grew more quickly.

Trading was increasing before FY26, but the change in FY26 was materially larger. Trading represented 24.04% of revenue in FY24 and 29.08% in FY25 before reaching 61.39% in FY26. Conversely, woven fabric and woven bags together accounted for 75.95% of FY24 revenue, compared with 38.57% in FY26. The reported figures show a shift in the composition of sales rather than proportionate expansion across all three major categories.

What happened to Vama Woven Fabric’s operating and net profit margins?

Vama Woven Fabric’s EBITDA margin fell by 5.06 percentage points to 8.32% in FY26, although EBITDA increased to Rs 17.8641 crore from Rs 10.3657 crore in FY25. EBITDA means earnings before interest, tax, depreciation and amortisation. The company calculates it as profit before tax plus depreciation and finance costs, less other income; its rise of Rs 7.4984 crore was smaller than the Rs 137.1690 crore increase in revenue from operations.

Profit after tax, or PAT, increased to Rs 11.5451 crore in FY26 from Rs 6.8376 crore in FY25, while PAT margin declined by 3.45 percentage points to 5.38%. PAT margin is PAT divided by revenue from operations. FY26 had the lowest EBITDA margin and PAT margin among the three reported years: EBITDA margin was 18.32% and PAT margin was 9.44% in FY24.

The disclosure establishes that trading’s revenue share rose while company-level margins declined in FY26, but it does not identify trading as the cause of the margin movement. It provides revenue by product category but not category-level gross margins, costs or profits. Whether the lower margins persist depends on future sales mix and profitability by category, neither of which is quantified in the supplied disclosure.

How concentrated were Vama Woven Fabric’s customers and suppliers in FY26?

Vama Woven Fabric’s FY26 sales were concentrated in its largest customer, which contributed Rs 136.6719 crore or 63.68% of revenue from operations. The top 10 customers contributed Rs 207.8292 crore, or 96.84% of FY26 revenue. In FY25, the largest customer represented 49.48% and the top 10 customers represented 94.86%, meaning both measures of customer concentration increased in FY26.

The company reported 64 customers that generated revenue in FY26, down from 77 in FY25. Average revenue per customer, defined as revenue from operations divided by the number of revenue-generating customers, increased to Rs 3.3534 crore from Rs 1.0058 crore. The combination of fewer customers, higher revenue and a larger largest-customer share accompanied the trading-led revenue expansion.

Supplier concentration also rose. The largest FY26 supplier accounted for Rs 127.8867 crore, or 68.49% of gross purchases of raw materials and traded goods, compared with 22.58% in FY25. The top 10 suppliers accounted for 100.00% of FY26 gross purchases, compared with 84.04% in FY25. Vama Woven Fabric did not disclose supplier and customer names because it had not obtained no-objection certificates or consent letters.

Where did Vama Woven Fabric generate FY26 revenue and add capacity?

Vama Woven Fabric generated FY26 domestic revenue in Daman and Diu and Dadra and Nagar Haveli, Gujarat and Maharashtra. Daman and Diu and Dadra and Nagar Haveli contributed Rs 102.8697 crore, or 47.93% of revenue from operations, becoming the largest reported territory. Maharashtra contributed Rs 84.9984 crore, or 39.60%, and Gujarat contributed Rs 26.7490 crore, or 12.46%.

The territorial mix changed from FY25, when Maharashtra represented 62.10% of revenue and Daman and Diu and Dadra and Nagar Haveli represented 25.88%. Revenue from Daman and Diu and Dadra and Nagar Haveli increased by Rs 82.8294 crore from Rs 20.0403 crore in FY25. The company’s disclosed domestic revenue therefore remained concentrated in three territories while the leading territory changed.

Average annual manpower increased to 45 employees in FY26 from 21 in FY25, while employee-benefit cost rose to Rs 3.7545 crore from Rs 3.0926 crore. Average annual manpower cost, calculated as employee-benefit cost divided by average annual manpower, declined to Rs 8.34 lakh from Rs 14.73 lakh. Return on equity declined to 50.37% from 52.20%, while return on capital employed increased to 31.94% from 28.83%.

Conclusion

Vama Woven Fabric’s FY26 growth was chiefly driven by trading, which supplied 61.39% of revenue after accounting for 29.08% in FY25. Woven fabric and woven bag sales both increased in rupee terms, but their combined revenue share declined to 38.57%; at the same time, EBITDA margin fell to 8.32% and PAT margin fell to 5.38%.

The next reported period will show whether trading remains the majority of revenue and whether customer and supplier concentration changes from FY26 levels. Vama Woven Fabric has disclosed plans to reduce raw-material use and energy consumption, recycle production waste into polypropylene granules and pursue circular material models, but it has not disclosed targets or timing for their effect on revenue mix or profitability.