Synopsis: Varvee Global Ltd shares rose after adding 6 lakh meters of non-denim capacity, lifting the total to 18 lakh, and its Q2 FY26 revenue had jumped 86.6% YoY growth
The shares of the company that have composite integrated manufacturing facilities for the production of a wide range of Denim Fabrics, where its portfolio also includes non-denim Fabrics, are in focus after their capacity expansion news.
With a market capitalisation of Rs. 382 crore, Varvee Global Ltd’s shares on Tuesday made a day high of Rs 151 per share, up by 2.37 percent from its previous day’s close price of Rs 147.5 per share. The shares have given a return of 734 percent over the last five years.
What’s the News
Aligned with the new management’s push to diversify beyond denim, the company has ramped up its non-denim operations by adding 6 lakh meters of monthly capacity. This takes total installed capacity from 12 lakh meters to 18 lakh meters per month in shirtings and suitings, marking a clear step toward broadening its fabric portfolio.
This expansion is an important step in Varvee Global Limited’s growth journey, bringing the company closer to its target of producing up to 50 lakh meters per month in the non-denim segment. It has been driven by rising market demand and a focus on strengthening capabilities in value-added textiles. By optimising existing facilities and refining production processes, the company has scaled up efficiently while maintaining high-quality standards.
The management added that this capacity expansion is an important step in their growth strategy, as this move will help the company to meet its consumer demand, improve turnaround times, and further strengthen its position in the Non-Denims – Shirtings and Suitings Fabrics
About the company & Q2 Financial Highlights
Incorporated in 1988, Varvee Global Limited (formerly known as Aarvee Denims and Exports Limited), a leading textile manufacturing company, with a detailed denim portfolio, including Satin Denims, High Fashion Denims, Flat Finish Denims and Denims incorporating LYCRA dualFX Technology, with a runway in Non-denim Capacity Conversion with a Centralised Physical Footprint- The Narol Unit (Sole Manufacturing Hub)
Revenue from operations grew by 86.6 percent to Rs 28 crore in Q2 FY26, corresponding to the same quarter in the last financial year. Accompanied by Net profit growth of 25 percent YoY to Rs 10 crore, and EPS grew to Rs 3.96 per share YoY in Q2 FY26. As the company trades at a P/E of 19.1x per share, below the average industry P/E.
Gross margin for Q2FY26 stood at 55.78 percent, a huge jump from 17.42 percent YoY, and its EBITDA margin saw a turnaround to positive 49.75 percent from negative 30.20 percent for the same period.
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