Varvee Global Ltd: Textile Stock Soars as Non-Denim Capacity Expands by 50% per Month
The shares of Varvee Global Ltd, a leading textile manufacturing company known for its composite integrated manufacturing facilities, are in the spotlight after the company announced an expansion in its non-denim fabric production capacity. This strategic move is expected to bolster the company's position in the textile market and drive further growth.
With a market capitalization of Rs. 382 crore, Varvee Global Ltd's shares hit a day high of Rs 151 per share on Tuesday, marking a 2.37 percent increase from the previous day’s closing price of Rs 147.5 per share. Over the past five years, the company's shares have delivered an impressive return of 734 percent, reflecting strong investor confidence and market performance.
What’s the News
The company has significantly ramped up its non-denim operations by adding 6 lakh meters of monthly production capacity. This expansion brings the total installed capacity to 18 lakh meters per month in shirtings and suitings, a substantial increase from the previous 12 lakh meters. This move is part of the new management’s strategy to diversify beyond denim and tap into the growing demand for value-added textiles.
The expansion is a crucial step in Varvee Global Limited’s growth journey, bringing the company closer to its target of producing up to 50 lakh meters per month in the non-denim segment. By optimizing existing facilities and refining production processes, the company has scaled up efficiently while maintaining high-quality standards.
According to the management, this capacity expansion is a vital part of their growth strategy. It will help the company meet increasing consumer demand, improve turnaround times, and further solidify its position in the non-denim shirtings and suitings fabrics market.
About the Company & Q2 Financial Highlights
Incorporated in 1988, Varvee Global Limited (formerly known as Aarvee Denims and Exports Limited) is a leading textile manufacturing company with a comprehensive portfolio of denim fabrics, including Satin Denims, High Fashion Denims, Flat Finish Denims, and Denims incorporating LYCRA dualFX Technology. The company has also been expanding its non-denim capacity, with a centralized physical footprint at The Narol Unit, its sole manufacturing hub.
In Q2 FY26, the company reported robust financial performance, with revenue from operations growing by 86.6 percent to Rs 28 crore compared to the same quarter in the previous financial year. Net profit also saw a 25 percent year-over-year (YoY) growth to Rs 10 crore, and earnings per share (EPS) increased to Rs 3.96 per share YoY. The company trades at a P/E ratio of 19.1x, which is below the average industry P/E.
Financial metrics for Q2FY26 were particularly strong, with a gross margin of 55.78 percent, a significant improvement from 17.42 percent YoY. The EBITDA margin also turned positive at 49.75 percent, up from a negative 30.20 percent in the same period last year.
Conclusion
The strategic expansion of non-denim fabric production capacity by Varvee Global Ltd is a testament to the company's commitment to diversification and growth. With a strong financial performance and a clear focus on value-added textiles, Varvee Global is well-positioned to capitalize on the growing demand in the textile market and continue delivering value to its shareholders.
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