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VARDHACRLC - Vardhman Acrylic

📊 NSE: VARDHACRLC 🏢 Textiles - Manmade 📅 Last Updated: 12/14/2025 14:55

📢 Recent Corporate Announcements

Vardhman Acrylics Reports Nil Share Dematerialization for February 2026

🟡 NEUTRAL ⭐ 1/10

ROUTINE 📅 07 Mar 2026, 10:19 AM

Vardhman Acrylics Limited has submitted its monthly dematerialization report for the period ending February 28, 2026. The report confirms that zero shares were dematerialized through both CDSL and NSDL during the month. This is a standard regulatory filing required to track the conversion of physical share certificates into electronic format. The company's equity shares continue to be available for demat under ISIN INE116G01013.

Zero shares dematerialized through CDSL in February 2026
Zero shares dematerialized through NSDL in February 2026
Total dematerialization activity for the month stands at Nil
Filing is a routine compliance requirement for listed companies

💡 No action is required from investors as this is a routine administrative filing with no impact on the company's financial performance or valuation.

Vardhman Acrylics Reports Nil Share Dematerialization for January 2026

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 05 Feb 2026, 05:23 PM

Vardhman Acrylics Limited has submitted its monthly dematerialization report for the period ending January 31, 2026. The filing confirms that zero shares were dematerialized through both NSDL and CDSL during the month. This is a standard regulatory disclosure required to track the conversion of physical shares into electronic format. There is no change in the company's capital structure or shareholding pattern resulting from this update.

Zero (Nil) shares were dematerialized through CDSL in January 2026
Zero (Nil) shares were dematerialized through NSDL in January 2026
The report covers the monthly period ending January 31, 2026
Company ISIN for equity shares remains INE116G01013

💡 No action is required as this is a routine administrative filing with no impact on company fundamentals or stock valuation.

Vardhman Acrylics Q3 PAT Surges 86.6% YoY to ₹7.41 Cr Despite Revenue Decline

🟢 POSITIVE ⭐ 7/10

EARNINGS 📅 20 Jan 2026, 11:54 AM

Vardhman Acrylics reported a strong bottom-line performance for Q3 FY2025-26, with net profit jumping 86.6% YoY to ₹7.41 crore. This growth was achieved despite a 6.7% YoY decline in revenue from operations, which stood at ₹76.28 crore. The company's profitability improved significantly due to lower total expenses, even after absorbing a one-time hit of ₹1.21 crore related to new Labour Code provisions. For the nine-month period ended December 2025, net profit reached ₹11.66 crore compared to ₹9.86 crore in the previous year.

Net Profit increased by 86.6% YoY to ₹7.41 crore from ₹3.97 crore in the same quarter last year.
Revenue from operations declined 6.7% YoY to ₹76.28 crore from ₹81.78 crore.
Earnings Per Share (EPS) rose to ₹0.92 for the quarter, up from ₹0.49 YoY.
Total expenses for the quarter were reduced to ₹70.03 crore compared to ₹81.71 crore in Q3 FY25.
A one-time provision of ₹1.21 crore was recognized as an employee benefit expense due to the implementation of new Labour Codes.

💡 Investors should monitor the company's ability to sustain these improved margins given the declining revenue trend. The sharp increase in profitability and EPS makes the stock attractive, but the top-line contraction warrants a cautious watch on demand for acrylic fibre.

Vardhman Acrylics Submits SEBI Regulation 74(5) Compliance Certificate for Q3 FY 2025-26

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 06 Jan 2026, 10:19 AM

Vardhman Acrylics Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, provided by MCS Share Transfer Agent Limited, covers the period ending December 31, 2025. The registrar confirmed that no requests for the dematerialization of equity shares were received during this quarter. This filing is a standard administrative requirement to ensure the accuracy of the company's shareholding records.

Compliance certificate filed for the quarter ended December 31, 2025.
Registrar and Share Transfer Agent (RTA) confirmed zero requests for dematerialization during the period.
The filing adheres to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018.
Document issued by MCS Share Transfer Agent Limited on January 2, 2026.

💡 No action is required from investors as this is a routine regulatory filing. Monitor the company for upcoming quarterly financial results for fundamental performance updates.

Vardhman Acrylics Reports Nil Share Dematerialization for December 2025

🟡 NEUTRAL ⭐ 1/10

ROUTINE 📅 06 Jan 2026, 10:14 AM

Vardhman Acrylics Limited has submitted its monthly dematerialization report for the period ending December 31, 2025. The report confirms that zero equity shares were dematerialized through both NSDL and CDSL during the month. This is a standard regulatory disclosure required to track the conversion of physical shares into electronic form. The company's shares continue to be available for demat under ISIN INE116G01013.

Zero shares were dematerialized via CDSL during the month of December 2025.
Zero shares were dematerialized via NSDL during the month of December 2025.
The filing is a routine monthly compliance update submitted to the National Stock Exchange.
The company's equity shares remain fully paid up and available for demat under ISIN INE116G01013.

💡 No action is required from investors as this is a routine administrative filing with no impact on company fundamentals or stock performance.

Vardhman Acrylics to Close Trading Window from Jan 1, 2026 for Q3 FY26 Results

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 26 Dec 2025, 03:32 PM

Vardhman Acrylics Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI insider trading regulations. This closure is ahead of the declaration of un-audited financial results for the quarter and nine months ending December 31, 2025. The trading window will remain shut for designated persons and will reopen 48 hours after the results are officially published. This is a standard procedure for listed companies in India.

Trading window closure effective from January 1, 2026, at 09:00 a.m.
Closure is related to the un-audited financial results for the period ending December 31, 2025.
Trading window will reopen 48 hours after the financial results are made public.
Compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015.

💡 No action is required as this is a routine regulatory announcement. Investors should focus on the upcoming financial results for fundamental analysis.

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💰 Financial Performance

Revenue Growth by Segment

The company operates primarily in the Acrylic Fibre segment. Revenue from operations grew 24.4% YoY to INR 158.79 Cr in H1 FY26 compared to INR 127.67 Cr in H1 FY25. For Q2 FY26, revenue was INR 89.40 Cr, a 26.6% increase over Q2 FY25 (INR 70.62 Cr).

Geographic Revenue Split

Not explicitly disclosed by region, but the company maintains a strong domestic presence in India, facing intense competition from imports and exporting countries which impacts domestic realisations.

Profitability Margins

Net Profit After Tax (PAT) for H1 FY26 was INR 4.25 Cr, representing a 27.8% decline from INR 5.89 Cr in H1 FY25. PAT margin for FY24 stood at 6% (INR 18 Cr) compared to 8% in FY23 (INR 33 Cr) and 15.3% in FY21 (INR 43 Cr).

EBITDA Margin

Operating margins improved to ~9.5% in FY23 from ~3.6% in FY22. However, margins are expected to moderate to the 5-7% range due to higher competition and volatile raw material prices. Historical margins have fluctuated between 7% and 13%.

Capital Expenditure

The company plans modest maintenance capital expenditure for FY24 and FY25, which is to be funded entirely through internal accruals. Specific INR Cr values for future capex are not disclosed, but historical cash accruals of INR 10-15 Cr annually support these requirements.

Credit Rating & Borrowing

CRISIL reaffirmed 'CRISIL AA/Stable' for long-term and 'CRISIL A1+' for short-term bank facilities. The company is debt-free (Nil external debt) as of FY23, with interest coverage at 72.73 times in FY24.

⚙️ Operational Drivers

Raw Materials

The primary raw material is Acrylonitrile (implied as crude oil-linked), which accounts for a significant portion of costs; cost of materials consumed was INR 114.11 Cr in H1 FY26, representing 71.8% of revenue.

Import Sources

Not specifically named, but raw material prices are directly linked to global crude oil price movements.

Capacity Expansion

Current installed capacity is 21,000 Tonnes Per Annum (TPA). No major capacity expansion is planned beyond normal maintenance to sustain current operations.

Raw Material Costs

Raw material costs were INR 114.11 Cr in H1 FY26, up 7.7% from INR 105.94 Cr in H1 FY25. Procurement is vulnerable to crude oil volatility, which limits the company's ability to pass on cost increases to customers.

Manufacturing Efficiency

Capacity utilization improved in FY23, driving revenue to INR 427 Cr, though performance is expected to moderate in FY25 due to competition from dumped imports.

📈 Strategic Growth

Expected Growth Rate

15-20%

Growth Strategy

Growth is targeted through maintaining its position as a top 3 domestic player and leveraging managerial support from parent VTXL. Rating upgrades are contingent on scaling revenue above INR 500 Cr while sustaining operating margins above 10%.

Products & Services

Acrylic fibre sold under the brand name VARLAN, used for manufacturing hand-knitting yarn, blankets, jerseys, sweaters, saris, upholstery, and carpets.

Brand Portfolio

VARLAN

Market Expansion

Focus remains on the domestic Indian market where the company holds a leading position among the top three players.

Market Share & Ranking

One of the top three players in the domestic acrylic fibre industry, which collectively hold 90% of operational capacity.

Strategic Alliances

Strong operational and managerial linkage with parent company Vardhman Textiles Limited (VTXL), which holds a 70.74% stake.

🌍 External Factors

Industry Trends

The industry is consolidating with the top 3 players holding 90% capacity. Future growth is tied to the revival of demand in the end-user garment and home textile industries.

Competitive Landscape

Intense competition from domestic players and international exporters dumping low-priced fibre in the Indian market.

Competitive Moat

Moat is based on cost leadership through scale (21,000 TPA), strong parentage (VTXL), and a debt-free status, though it is challenged by low-cost polyester substitutes.

Macro Economic Sensitivity

Highly sensitive to global crude oil prices and domestic textile demand cycles.

Consumer Behavior

Shift toward cheaper synthetic substitutes like polyester staple fibre affects the long-term demand for acrylic-based winter wear and upholstery.

Geopolitical Risks

Trade barriers and dumping from exporting countries (like China or South East Asia) pose significant risks to domestic price stability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to GST and Central Excise regulations. The company is currently contesting alleged wrong availment of Input Tax Credit.

Taxation Policy Impact

The company is subject to standard Indian corporate tax rates; current tax liabilities stood at INR 23.00 Cr as of September 2025.

Legal Contingencies

A penalty of approximately INR 2.00 Cr was imposed on December 4, 2025, by the Joint Commissioner, Central GST and Central Excise, Vadodara-II, for alleged wrong availment of Input Tax Credit.

⚠️ Risk Analysis

Key Uncertainties

Volatility in crude oil prices (impacts margins by 5-10%), competition from polyester substitutes, and potential for sustained margin deterioration below 5%.