Gujarat-based textile company receives credit rating update; Details inside!

Vishal Fabrics Limited has provided an intimation under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding the credit rating of its Bank facilities by India Ratings and Research Private Limited. The credit rating agency has affirmed the rating for the company's Term Loans (Rs 636.1 million) at IND A- and revised the Outlook to Stable from Negative. Similarly, the rating for the Fund-based Working Capital Limits (Rs 1,780 million) was Affirmed at IND A-/Stable/IND A2+, with the Outlook revised to Stable from Negative. The rating for the Non-fund-based Working Capital Limits (Rs 620 million) was simply Affirmed at IND A2+. This revision of the outlook to Stable from Negative is typically viewed as a positive signal regarding the company's financial stability and debt repayment capacity.

Earlier, the company received a Rs 100 crore Merchant Export Order from Kiran Enterprises. This substantial domestic contract is for the supply of a wide range of premium denim fabrics, with execution scheduled throughout Calendar Year 2026, starting January 15. The market views this order as a strong positive indicator because it targets lucrative global export markets, including key international markets such as Nigeria, Egypt, South Africa, Turkey, and Morocco, signalling robust demand for the company's denim products and justifying the sharp rise in its stock price.

About the Company

Vishal Fabrics Ltd, an Ahmedabad-based company and part of the Chiripal Group, stands as one of India's leading denim fabric manufacturers, boasting a production capacity exceeding 100 million meters annually. Renowned for its integrated value chain, advanced infrastructure, and unwavering commitment to quality and sustainability, Vishal Fabrics excels in producing wider-width fabrics and has significantly expanded its denim production. The company's dedication to innovation is evident in its adoption of green practices throughout its operations, including using sustainable raw materials, recycling water, and maintaining zero-discharge facilities.

For the second quarter of fiscal year 2026 (Q2FY26), the company's Total Income increased by 13 per cent, reaching Rs 433.31 crore. This is a rise from Rs 384.83 crore reported in the corresponding quarter of the previous financial year. The company's Consolidated Net Profit for the quarter stood at Rs 10.70 crore, marking a substantial growth of 65 per cent compared to Rs 6.50 crore in Q2FY25. In H1FY25, the total income increased by 15 per cent to Rs 830.40 crore and net profit increased by 65 per cent to Rs 19.86 crore compared to H1FY25.

For the full year FY25, total income increased by 5 per cent to Rs 1,521.43 crore, up from Rs 1,451.29 crore in FY24. Net profit for the year also saw healthy growth, rising to Rs 23.84 crore in FY25, a 13 per cent increase compared to Rs 21.13 crore posted in the previous year. The company has a market cap of over Rs 650 crore. The stock is up by 30 per cent from its 52-week low of Rs 21.05 per share. The company's promoters have a commanding 55.06 per cent ownership stake, while FIIs hold 24.51 per cent, DIIs hold 0.04 per cent and public shareholders own 20.39 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.