1. Opening Hook
US tariffs decided to walk into the room like an uninvited relative at a wedding—loud, expensive, and ruining everyone’s mood.
And VTM? It smiled politely, offered discounts, and quietly started packing bags for Europe, Australia, and Latin America.
Founded in 1946, this is not a company discovering geopolitics for the first time. It has survived wars, cotton cycles, and fashion trends that should’ve been illegal. FY25 numbers looked blockbuster, FY26 suddenly added a thriller subplot called “60% US tariffs.”
Management insists this is a temporary inconvenience, not a plot twist. Premiumisation, new geographies, and a factory that’s already bursting at the seams are supposed to save the day.
Stick around. The real drama begins once you realise 40% of revenue depends on one US customer, and management is oddly calm about it.
2. At a Glance
- Revenue ₹344.5 Cr – YoY up 66%, apparently without divine intervention.
- Export share 64% – Global ambition, global headaches included.
- EBITDA margin 19.4% – Last year’s flex, not this quarter’s reality.
- PAT ₹45.4 Cr – Up 149%, tariffs arrived fashionably late.
- US tariffs 60% – Nobody pays them, but everyone bleeds anyway.
3. Management’s Key Commentary
“Our FY25 growth was driven primarily by home textiles.”
(Translation: Grey fabric
is passé, quilts are the new gold 😏)
“Export sales were 64% of turnover.”
(Translation: Domestic market, we’ll text you later.)
“Tariffs impacted Q2 FY26 EBITDA and PAT.”
(Translation: Numbers blinked first.)
“We are shifting towards premium top-of-bed products.”
(Translation: If tariffs hurt, sell richer blankets.)
“Quince contributes about 40–45% of revenue.”
(Translation: Customer concentration? What concentration? 😏)
“We don’t pay tariffs; US buyers do.”
(Translation: Emotionally, we still pay.)
“Capacity is fully utilised in home textiles.”
(Translation: Expansion wasn’t optional, it was compulsory.)
4. Numbers Decoded
| Metric | FY25 | Reality Check |
|---|---|---|
| Revenue | ₹344.5 Cr | Growth monster, but tariff-sensitive |
| EBITDA Margin | 19.4% | Peak-cycle number, not normalized |
| PAT | ₹45.4 Cr | Assisted by mix + leverage |
| Export Share | 64% | US-heavy risk cocktail |
| Home Textiles | ~60% | Margin engine |
| Quince Exposure | 40–45% | Comfortably uncomfortable |
Read-through:
FY25 numbers scream operating leverage. FY26 numbers whisper “diversify faster.”
5. Analyst Questions
- Why VTM vs Welspun/Trident?
Because VTM plays manufacturer + 3PL + fulfilment, not
