VTM - VTM

📊 BSE: 532893 🏢 Other Textile Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total operating income grew 66.5% YoY to INR 344.53 Cr in FY2025 from INR 206.88 Cr in FY2024. This was driven by a 33% compounded annual growth rate over the three years ending FY2025, primarily due to the ramp-up of the home textiles segment.

Geographic Revenue Split

The company derives 60% of its revenue from the local Indian market and 40% from export markets in the fabric segment.

Profitability Margins

Operating margins improved significantly to 19.4% in FY2025 from 12.6% in FY2024. PAT margins increased from 8.81% (INR 18.22 Cr) in FY2024 to 13.17% (INR 45.37 Cr) in FY2025 due to the higher-margin home textiles division.

EBITDA Margin

Operating margin stood at 19.4% in FY2025, a YoY increase of 6.8 percentage points from 12.6% in FY2024, reflecting the shift toward value-added home textile products.

Capital Expenditure

Recent investments include INR 0.10 Cr for wider width inspection machines, INR 0.025 Cr for a roll packing machine, and INR 0.06 Cr for a heat recovery system. The company also imported 4 ITEMA Rapier looms from Italy.

Credit Rating & Borrowing

Long-term rating was upgraded to 'Crisil A-/Stable' from 'Crisil BBB+/Stable' in June 2025. Short-term rating is 'Crisil A2+'. Interest coverage is robust at 37.19 times in FY2025.

⚙️ Operational Drivers

Raw Materials

Cotton yarn is the primary raw material, accounting for approximately 65% of the total production cost.

Import Sources

Sourced primarily from neighboring districts in Tamil Nadu, India, leveraging the company's favorable location for logistics efficiency.

Capacity Expansion

The company recently added 4 ITEMA Rapier looms and 2 wider width inspection machines to its Home Textiles Division to support the segment's ramp-up.

Raw Material Costs

Raw material costs represent 65% of production expenses. Volatility in cotton prices directly impacts the bottom line as the ability to pass on costs depends on global competition.

Manufacturing Efficiency

Electricity consumption per meter of cloth is monitored closely, with Sulakkarai showing higher efficiency (INR 4.50/meter) compared to Alampatti (INR 8.25/meter).

📈 Strategic Growth

Expected Growth Rate

33%

Growth Strategy

The company is focusing on the high-margin home textiles segment, which improved overall operating margins to 19.4%. It is also expanding its digital footprint through a partnership with the American e-commerce platform 'Quince' and is seeking to list its equity shares on the National Stock Exchange (NSE) to improve financial flexibility.

Products & Services

Grey cotton fabric, bedsheets, pillow covers, and quilts.

Brand Portfolio

Quince (E-commerce partner platform).

New Products/Services

Home textiles division (bedsheets, quilts) started in FY2024, now significantly contributing to the 66.5% revenue jump in FY2025.

Market Expansion

Expansion into the US market via American e-commerce platforms and proposed listing on the NSE to broaden the investor base.

Market Share & Ranking

Established position in the grey fabric segment with over six decades of industry presence.

Strategic Alliances

Partnership with American e-commerce platform 'Quince' for the sale of home textile products.

🌍 External Factors

Industry Trends

The industry is shifting toward value-added home textiles. VTM is positioning itself by moving from 12.6% to 19.4% margins through this segment shift.

Competitive Landscape

Faces intense competition from both domestic and international players in the cotton fabric and home textile segments.

Competitive Moat

Moat is built on a 60-year established market position and a healthy financial risk profile with a low TOLTNW ratio of 0.2 times, providing a cushion against industry downturns.