Vishal Fabrics Ltd. (BSE: 538598) isa premier supplier of top-quality stretch denim fabric. As a result of political turmoil in Bangladesh, there is a noticeable shift towards alternative manufacturing hubs. India’s textile hubs known for its robust manufacturing capabilities, may emerge as a key beneficiary of this shift.
The potential for a restructured supply chain aligns with broader trends emphasizing sustainable and transparent sourcing practices. Regions with established infrastructure and
robust compliance mechanisms stand to gain significant traction.
By 2025, the textile industry is expected to see significant growth in exports, driven by
increasing demand in key markets such as the United States, Europe, and the Middle East.
India’s textile exports are projected to reach $45 billion by 2025, up from the $38 billion mark in 2020. This growth is driven by India’s competitive manufacturing costs, skilled labor force, and the push to strengthen its export-friendly policies.
Earlier, the company reported stellar earnings for Q2FY25 & H1FY25. For the quarter ended 30 September 2024 (Standalone), the revenue from operations were reported at Rs. 38478.40 Lakhs. EBITDA grew 41% YoY, from Rs. 2165.06 Lakhs (Q2FY24), to Rs. 3052.13 Lakhs (Q2FY25). EBITDA Margin was reported at 7.93%. PBT rose 92% YoY to Rs. 1201.62 Lakhs, and PAT was reported at Rs. 649.56 Lakhs, a growth of 46% YoY.
For the half year ended 30 September 2024 (Standalone), the revenue from operations were reported at Rs. 72740 Lakhs. EBITDA grew 34.38% YoY, from Rs. 4257.31 Lakhs (H1FY24), to Rs. 5720.84 Lakhs (H1FY25). EBITDA Margin was reported at 7.93%. PBT rose 110.28% YoY to Rs. 2031.56 Lakhs, and PAT was reported at Rs. 1127.38 Lakhs, a growth of 66.54% YoY.
Earlier, the board allotted compulsorily convertible warrants at a floor price of Rs. 30.60 per
warrant to persons belonging to non-promoter category, aggregating to Rs. 153 Cr. FPIs North Star Opportunities Fund VCC Bull Value Incorporated VCC Sub-Fund, Eminence Global Fund PCC- EUBILIA Capital Partners Fund, and other public category persons Elysian Wealth Fund (Formerly Silver Stallion Ltd)& Vikasa India EIF I Fund.
Recently, the board approved Qualified Institutions Placement (QIP) for aggregate amount of up to Rs. 100 Crores, in one or more tranches. The fund-raise will be subject to approval of the Company’s shareholders and receipt of applicable regulatory approvals.
Vishal Fabrics Ltd acquired a 37.72 per cent stake (1,170,500 shares at Rs 135 per share) in Chiripal Textile Mills Pvt Ltd on March 30, 2024, for a total of Rs 158.02 crore. This acquisition makes Chiripal Textile Mills an associate company of Vishal Fabrics. Chiripal Textile Mills is a manufacturer and trader of various yarns and fabrics, with a turnover of Rs 539.03 crore for the financial year ending March 31, 2023.
Vishal Fabrics Ltd, a textile company established in 1985 and part of the Ahmedabad-based
Chiripal Group, manufactures and distributes a wide range of fabrics including dyed yarn,
denim, and custom textile work. Certified for quality and sustainability, they specialize in dyeing, printing, and processing denim and other fabrics for both their collections and client-specific jobs.
Their fabrics come in various compositions like 100 per cent cotton, cotton blends, and modal, and they are a leading supplier of stretch denim. With a focus on innovation, they offer diverse finishes, weaves, blends, and colours. Their extensive production capacity comes from multiple facilities in Ahmedabad, Gujarat, and they boast an impressive list of clientele including well-known international fashion brands.
Vishal Fabrics Limited is a premier supplier of top quality stretch denim fabric which is very
popular among people of all ages. VFL stands for a denim revolution, that brings equality back to fashion, and change the market trend, forever. To engineer this goal, VFL is tirelessly working towards an ecosystem where the stakeholders benefit and grow with the company. VFL intends to grow with all, and grow for all. Since 3 decades, VFL’s clear goal has been to deliver quality fabrics that effortlessly match global standards. The company believes in innovation and technology, and it is sure it will help it grow as one of India’s leading dyeing, printing, and processing units.