Varvee Global Q2 FY26 Earnings Results: EBITDA Swings to Profit with 50% Margin

Varvee Global Limited, formerly Aarvee Denims and Exports Limited, announced its standalone unaudited financial results for the quarter and half-year ended September 30, 2025. 

The integrated textile manufacturer demonstrated an exceptional turnaround driven by new management's strategic restructuring, 50% EBITDA margins, and 476% gross profit growth through portfolio rationalisation and operational excellence.

Varvee Global Q2 FY26 Earnings Results

For the quarter ended September 30, 2025, Varvee Global achieved standalone revenue from operations of ₹27.83 crore, registering exceptional growth of 80% YoY. Gross profit surged to ₹15.53 crore, up 476% YoY, with gross margin expanding 3,836 basis points to 55.78% from 17.42% in Q2 FY25.

EBITDA swung to a profit of ₹13.85 crore from a loss of ₹4.67 crore in Q2 FY25, with an EBITDA margin at 49.75%. Profit after tax stood at ₹10.21 crore, demonstrating growth of 24% YoY. Basic earnings per share were ₹3.96 compared to ₹3.52 in Q2 FY25. Finance costs were eliminated to near zero, declining 100% YoY.

Varvee Global Half Year FY26 Results

For the half year ended September 30, 2025, standalone revenue from operations reached ₹27.28 crore, declining 6% from ₹29.01 crore in H1 FY25 due to deliberate portfolio rationalisation and timing effects. Gross profit surged to ₹18.06 crore, up 1,094% with gross margin expanding 6,098 basis points to 66.20%.

EBITDA swung to a profit of ₹12.73 crore from a loss of ₹15.60 crore in H1 FY25, with an EBITDA margin at 46.66%. PAT came to ₹35.69 crore, up 16% from ₹30.85 crore in H1 FY25. Finance costs declined 84% to ₹1.43 crore from ₹9.14 crore previously.

Read More: MPS Share Price Soars Over 8% After Q2 FY26 Earnings Results; PAT Surges 57% YoY!

Operational Cost Excellence

Employee expenses declined 54% YoY to ₹0.96 crore in Q2 FY26 from ₹2.10 crore, reflecting organisational efficiency under new management. Other operating expenses reduced 30% to ₹4.70 crore from ₹6.74 crore. For H1 FY26, employee expenses fell 57% while other expenses declined 40%, creating durable operating headroom.

Balance Sheet Transformation

The company achieved debt-free status in June 2025, providing a stronger capital foundation to execute the revival plan. Non-current borrowings stood at ₹229.04 crore, while current borrowings declined to ₹52.01 crore. The deleveraging effort directly resulted in the near elimination of finance costs, enhancing free cash flow potential.

Varvee Global Share Price Performance

On November 13, 2025, Varvee Global share price opened at ₹155.28 on NSE, near the previous close of ₹155.28. During the day, it surged to ₹157.00 and dipped to ₹155.28. The stock is trading at ₹157.00 as of 9:20 AM. The stock registered a moderate gain of 1.11%.

Over the past week, it has moved up by 5.46%, over the past month, it has moved up by 10.67%, and over the past 3 months, it has declined by 4.80%.

Conclusion

Varvee Global demonstrated exceptional standalone turnaround in Q2 FY26 with PAT growing 24% YoY and revenue surging 80% YoY, powered by near debt free status achieved in June 2025, gross margin expansion of 3,836 basis points, EBITDA swing to 50% margin, near zero finance costs and new management's execution excellence in operational restructuring.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.