GHCL Textiles Ltd (NSE: GHCLTEXTIL) reported a revenue increase to ₹349.12 crore for the third quarter, driven by expanded textile operations. Investors are evaluating the impact of new national labor codes effective as of November 2025 and the company’s stable debt profile.
Latest Quarterly Results and Highlights For the quarter ended December 31, 2025, GHCL Textiles Ltd recorded revenue from operations of ₹349.12 crore, representing an increase from ₹285.00 crore in the same quarter of the previous year. Total income for the quarter reached ₹350.93 crore. The net profit for the period stood at ₹13.18 crore, an improvement over the ₹9.37 crore reported in the corresponding quarter of 2024. Total expenses for the quarter were ₹333.23 crore, with the cost of raw materials consumed accounting for ₹230.93 crore.
Year-Over-Year and Full-Year Context
For the nine-month period ending December 31, 2025, revenue from operations reached ₹954.91 crore, compared to ₹877.55 crore in the same period for 2024. Net profit for the nine-month period was ₹42.71 crore, a slight increase from the ₹41.77 crore earned in the prior year’s nine-month period. The earnings per share (EPS) for the quarter was 1.38, up from 0.98 YoY. The previous full financial year (ending March 31, 2025) saw a total revenue of ₹1,161.16 crore and a profit of ₹55.97 crore.
Business Model and Segment Updates
GHCL Textiles Ltd operates under a single reportable operating segment: “Textiles”. The company’s business model focuses on textile activity, formerly operating under the name Sree Meenakshi Mills.
Regulatory Milestones and Guidance
The company is currently assessing the impact of the Government of India’s consolidation of 29 labour legislations into four codes, which became effective on November 21, 2025. Initial assessments by the company indicate that the incremental financial impact of these changes is not material based on available information. Management will continue to evaluate the impact as specific Central and State rules are notified. There were no reported deviations or variations in the use of funds raised through public or rights issues during the quarter.
Market Situation and Indebtedness
As of December 31, 2025, the company reported a total financial indebtedness of ₹80.33 crore, consisting of loans and revolving facilities from banks. The company maintained a zero-default status on these obligations. The paid-up equity share capital remains at ₹19.12 crore.
Reasons to Pass
Investors may note that while revenue grew significantly YoY for the nine-month period, net profit growth was marginal (₹42.71 crore vs ₹41.77 crore), suggesting increased pressure on margins. Additionally, finance costs increased to ₹3.62 crore for the nine-month period compared to ₹2.07 crore in the previous year.
Where Does GHCL Textiles Ltd Today?
The company remains a focused textile entity with a stable debt position and an unmodified audit review conclusion. It is currently navigating the transition to new national labor regulations while maintaining a consistent growth trajectory in its core revenue streams.