Shareholders meeting

G) | Vardhman VARDHMAN TEXTILES LIMITED Delivering Excellence. Since 1965, CHANDIGARH ROAD Vardhman LUDHIANA- 141010, PUNJAB T: +91-161-2228943-48 F: +91-161-2601 048 E: secretarial.lud@vardhman.com Ref. VIL:SCY:AUG:2026-27 Dated: 25-Aug-2026 BSE Limited, National Stock Exchange of India Ltd, New Trading Ring, Exchange Plaza, Bandra-Kurla Complex, Rotunda Building, P.J. Towers, Bandra (East), Dalal Street, MUMBAI-400001. MUMBAI-400 051 Scrip Code: 502986 Scrip Code: VTL SUB: ANNUAL REPORT (F.Y. 2025-26) OF THE COMPANY, NOTICE CONVENING 538° ANNUAL GENERAL MEETING & E-VOTING INFORMATION Dear Sir, Pursuant to applicable regulations of the SEB! (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the 53"? Annual General Meeting (‘AGM’) of the Members of the Company will be held on Thursday, 17° September, 2026 at 10:00 a.m. through Video Conferencing (‘VC’)/ Other Audio Visual Means (‘OAVM’), in compliance with the relevant circulars issued by the Ministry of Corporate Affairs (‘MCA’) and the Securities and Exchange Board of India (‘SEB1’). Further, the Company has fixed Thursday, 10'° September, 2026 as the cut-off date to ascertain the eligibility of Members entitled to cast their vote electronically on all the resolutions to be passed at the AGM. The Company has engaged the services of Central Depository Services (India) Limited (‘CDSL’) to provide the e-Voting facility. The remote e- Voting schedule is as under: Commencement of remote e-Voting September 14, 2026 (09:00 am onwards) End of remote e-Voting Septernber 16, 2026 (upto 05:00 pm) Pursuant to Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed the Annual Report (F.Y. 2025-26) alongwith the Notice convening the 53 AGM of the Company. The said documents are also available on the website of the Company at www.vardhman.com. YARNS | FABRICS | GARMENTS | THREADS | FIBRES | STEELS CIN: LI7111PB1973PLC003345 WWW.VARDHMAN.COM G@) | Vardhman VARDHMAN TEXTILES LIMITED Delivering Excellence. Since 1965. CHANDIGARH ROAD Vardhman | LUDHIANA-141010, PUNJAB T: +91-161-2228943-48 F: +91-161-2601 048 E: secretarial.lud@vardhman.com Kindly take the same on record. Thanking you, Yours faithfully, For VARDHMAN TEXTILES LIMITED (SANJAY GUPTA) COMPANY SECRETARY YARNS | FABRICS | GARMENTS | THREADS | FIBRES | STEELS CIN: LI7111PB1973PLC003345 WWW.VARDHMAN.COM VARDHMAN TEXTILES LIMITED ANNUAL REPORT 2025-26 CONTENT CORPORATE OVERVIEW STATUTORY REPORTS Performance Highlights FY26 02 Management Discussion and Analysis Report 88 Chairman's Statement 04 Directors' Report 94 DUMMY TEXT IT IS About the Company 08 Corporate Governance Report 114 FORGED IN TURBULENCE Miles & Milestones 12 DUMMY The Vardhman Advantage 14 FINANCIAL STATEMENTS IS FORGED Our Value Creation Model 16 Standalone Financial Statements 130 Key Performance Indicators 18 Consolidated Financial Statements 218 IN TURBULENCE In fy25, when volatility shook the textile sector, vardhman stood firm. Our strength lies in OUR BUSINESS VERTICALS NOTICE 314 W comme dr ine e entfi n value cha in- yarn, fabric, Yarn 22 and garments. When yarn slowed, fabric rose. resilience we When headwinds tested, strategy triumphed. This Fabrics 28 CORPORATE INFORMATION 323 integration is more than structure- it is our shield, reinforced leadership Garments 32 our agility, our edge. It transforms challenges into opportunities and disruptions into momentum. Our Strategic Approach 36 we set the course for Environmental, Social & Governance 40 tomorrow... Our Board of Directors 85 CAUTIONARY STATEMENT Some information in this report may contain forward-looking statements which include statements regarding the Company’s expected financial position and results of operations, business plans and prospects etc. and are generally identified by forward-looking words such as “believe,” “plan,” “anticipate,” “continue,” “estimate,” “expect,” “may,” “will” or other similar words. These Forward-looking statements are dependent on assumptions or basis underlying such statements. We have made these assumptions in good faith and we believe they are reasonable in all material respects. However, we caution that actual results, performances or achievements could differ materially from those expressed or implied in such forward-looking statements. We undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Corporate Statutory Financial Vardhman Textiles Ltd. Overview Reports Statements PERFORMANCE PERFORMANCE HIGHLIGHT, FY26 9,652.33 1,494.37 I cr I cr Revenue from Operations EBITDA 740.02 10,187.73 I cr I cr Net Profit Net Worth PROFITABILITY 15.48 7.97 7.26 % % % EBITDA Margin Net Margin Return on Networth ENVIRONMENT 172.71 4.52 68.31 Lac kWH Mn KL MWp Energy Saving achieved Water treated Solar Energy Capacity (ETPs, STPs & ZLDs) SOCIAL 1,878 35.42 1,15,007 Training and awareness Women in our Team Lives Impacted through CSR programs held interventions during the year GOVERNANCE 50 33.33 96.67 % % % Independent Directors Percentage of Women Attendance at Board in our Board on the Board Meetings 02 / / 03 Annual Report 2025-26 Annual Report 2025-26 Corporate Statutory Financial Vardhman Textiles Ltd. Overview Reports Statements CHAIRMAN’S STATEMENT Dear Shareholders, The occasion of presenting you The Economic Backdrop removing the disadvantage that had so burdened the first Sustainability and Our People with the Annual Report for the India remained, through the year, among the half of the year. Spinning spreads, which had fallen to a Sustainability remains at the very heart of our strategy. fastest-growing major economies of the world, very low levels, recovered and the industry entered the We have continued to expand the share of green power financial year 2025-26 is, as always, supported by resilient domestic demand, moderate new year with a confidence. in our energy mix, invest in biomass and solar capacity, an opportunity for me to share with inflation and prudent fiscal and monetary management. and scale our recycling capabilities, in the firm belief Beneath this cyclical turn lies a deeper structural shift you my perspective on the textile This stability has been a source of strength for the that responsible manufacturing is now inseparable from that I consider even more important. Over the past two Industry, even as the external environment proved competitive manufacturing. industry, our performance and to three years, there has been significant closures of a unusually turbulent. Global trade was disrupted to spinning units estimated to the order of more than 10-11 future roadmap. a degree not seen in recent memory, with shifting Challenges are not overcome at the higher echelons of an million spindles. tariff policies unsettling supply chains and prompting organization alone. Indeed, the dynamism of a company buyers across several markets to defer decisions as they Your Company's Performance is reflected in the commitment and dedication of its awaited clarity. people, who are willing to embrace change—change Against this turbulent backdrop, your Company that demands greater effort, continuous learning, and The Textile Industry conducted itself with the steadiness that has long defined constant reorientation. This is the bedrock of success in it. We maintained high levels of capacity utilisation During the year, the Indian textile industry faced an ever-changing environment. especially in spinning though we faced strong headwinds a formidable combination of pressures. in fabric segment in export and domestic market. I can say with a deep sense of fulfilment and pride that our The imposition of steep import duties by continuous pursuit of training our people and developing the United States on goods from major We protected our customer relationships through the talent has always been an inte [Showing first 8,000 characters — download PDF for full document]