Varvee Global Reports 80% Revenue Jump, 49.75% EBITDA Margin, and Near-Zero Finance Cost in Q2 FY26

Varvee Global Limited (VGL), formerly known as Aarvee Denims and Exports Limited, announced its unaudited standalone financial results for Q2 FY26 and H1 FY26 ended September 30, 2025. The company reported strong operating performance, an improved balance sheet, and sustained capital discipline under the new management team.

In Q2 FY26, revenue from operations increased by 79.8 per cent year-on-year to Rs 278.31 million from Rs 154.79 million in Q2 FY25. EBITDA swung to a profit of Rs 138.46 million with a margin of 49.75 per cent, compared to a negative 30.20 per cent a year earlier. Gross profit rose sharply to Rs 155.25 million, marking a 475.8 per cent year-on-year increase, while gross margin expanded by 3,836 basis points to 55.78 per cent. Profit after Tax (PAT) increased 23.53 per cent to Rs 102.11 million. Finance costs were almost eliminated, falling 99.99 per cent year-on-year to Rs 0.00, following the company’s achievement of debt-free status in June 2025.

Operating efficiency was reflected in lower costs, with employee expenses down 54.45 per cent and other expenses down 30.20 per cent. For H1 FY26, PAT grew 15.69 per cent to Rs 356.92 million, while EBITDA swung to Rs 127.29 million, with a margin of 46.66 per cent. H1 gross margin expanded 6,098 basis points to 66.20 per cent, although revenue declined 5.97 per cent to Rs 272.79 million due to portfolio rationalisation.

VGL’s deleveraging efforts strengthened its financial position, with non-current borrowings at Rs 2,290.4 million and current borrowings at Rs 520.1 million. The company noted that its stronger gross profit, cost optimisation, and lower leverage have improved free cash flow and operational resilience.

Chairman and Managing Director, Mr. Jaimin Gupta, stated that Q2 FY26 represents the first full quarter under the new leadership strategy, resulting in a margin reset, a turnaround in EBITDA, and minimal finance costs. He added that the company would continue this performance trajectory into the second half of FY26, focusing on high-return investments and operational discipline.

Varvee Global Limited, headquartered in Ahmedabad, is an integrated textile manufacturer with operations spanning yarn production to finished fabrics, including denim, non-denim, shirting, and suiting. Following its 2025 restructuring, the company focuses on cost efficiency, operational excellence, and technology-driven supply chain improvements.

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