GHCL records mixed performance in Q2, FY26

GHCL Textiles (GTL) recorded a mixed performance in its Q2 FY26, showcasing strong market demand contrasted with persistent profit hurdles. The company posted its highest-ever quarterly revenue of Rs 338.04 crore, a 10.97 per cent Y-o-Y growth that signals sustained demand for its yarn products and successful sales expansion.

GTL improved its operational efficiency, with EBITDA rising 35.7 per cent and the EBITDA margin growing 199 basis points to 10.89 per cent. However, net profit fell by 22.28 per cent Y-o-Y to Rs 16.01 crore. Despite a strong top line and operating efficiency gains, this sharp decline highlights profits challenges, likely because of higher non-operating costs such as increased depreciation and normalized tax rates, as the year-ago quarter had benefited from an unusual tax credit.

Crucially, the company's Return on Equity (ROE) remains weak at around 4.01 per cent, substantially below textile industry benchmarks, indicating that GTL continues to face structural issues in efficiently converting shareholder capital into attractive net returns.