Vishal Fabrics Ltd. Sees Outlook Stabilize, Bolstered by Strong Export Order and Robust Financial Growth

Mumbai (Maharashtra) [India], December 9:Vishal Fabrics Limited, a prominent player in India’s textile industry and part of the esteemed Chiripal Group, has announced significant positive developments that are reshaping its financial outlook and market perception. The company recently received an affirmation of its credit ratings with a revised outlook to “Stable” from “Negative” by India Ratings and Research Private Limited for its bank facilities. This strategic upgrade reflects increased confidence in the company’s financial health and its capacity to manage debt obligations effectively.

The credit rating agency affirmed the rating for Vishal Fabrics’ Term Loans at IND A- with a revised Outlook to Stable from Negative, and similarly revised the Outlook for its Fund-based Working Capital Limits to Stable from Negative, maintaining a rating of IND A-/Stable/IND A2+. The Non-fund-based Working Capital Limits were affirmed at IND A2+. This positive recalibration by India Ratings and Research is a clear indication of improved financial stability and a stronger debt repayment capacity, signaling a more secure future for the company’s financial operations.

Further bolstering its market position, Vishal Fabrics secured a substantial Rs 100 crore Merchant Export Order from Kiran Enterprises. This significant domestic contract entails the supply of a diverse range of premium denim fabrics throughout Calendar Year 2026, commencing January 15. The order’s importance is amplified by its focus on lucrative global export markets, including Nigeria, Egypt, South Africa, Turkey, and Morocco, underscoring the robust international demand for Vishal Fabrics’ denim products and providing a clear rationale for recent positive movements in its stock price.

These favorable credit rating revisions and strong order book developments are supported by the company’s impressive financial performance. For the second quarter of fiscal year 2026 (Q2FY26), Vishal Fabrics reported a commendable 13 per cent increase in Total Income, reaching Rs 433.31 crore, up from Rs 384.83 crore in the same period last year. The company’s Consolidated Net Profit for the quarter experienced a substantial surge of 65 per cent, growing from Rs 6.50 crore in Q2FY25 to Rs 10.70 crore in Q2FY26. This robust growth trajectory continued into the first half of FY26, with total income rising by 15 per cent to Rs 830.40 crore and net profit escalating by 65 per cent to Rs 19.86 crore compared to H1FY25. The full fiscal year FY25 also demonstrated healthy growth, with total income increasing by 5 per cent to Rs 1,521.43 crore and net profit rising by 13 per cent to Rs 23.84 crore.

Vishal Fabrics, headquartered in Ahmedabad and operating with a production capacity exceeding 100 million meters annually, is recognized for its integrated value chain, advanced infrastructure, and commitment to quality and sustainability. The company’s focus on producing wider-width fabrics and its adoption of green practices, including sustainable raw materials and water recycling, further solidify its standing as a leader in the Indian textile sector and position it for continued growth in both domestic and international markets.

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