In an interview, Suketu Shah notes that growth and margin expansion can go hand in hand when backed by execution discipline, cost control and sustained demand across global markets
By leveraging higher capacity utilisation, improving product mix and technology-led efficiencies, Vishal Fabrics is targeting strong double-digit growth over the medium term while steadily strengthening earnings before interest, tax, depreciation and amortisation (Ebitda), its top official told BW Retail World.
In an interview, Suketu Shah, the Chief Executive Officer (CEO) noted that the company is investing in advanced machinery, process automation, and productivity-enhancing technologies across key stages of our manufacturing value chain. At the same time, the company is evaluating opportunities across man-made fibre (MMF) and specialised fabric categories in a calibrated manner, aligned with customer demand and market viability. Edited Excerpts:
What are your key financial targets for FY26 and FY27, in terms of revenue, margins, and capacity utilisation?
Over FY26 and FY27, our focus is on scaling the business meaningfully while improving profitability metrics. Having crossed Rs 1,547 crore in revenue in FY23, we see clear headroom to expand both our domestic and export revenues by leveraging our installed capacities and deepening customer relationships. We are targeting strong double-digit growth over the medium term, supported by higher capacity utilisation across our 90 MMPA dyeing and 105 MMPA processing infrastructure.
On margins, our objective is to consistently strengthen Ebitda from current levels through better product mix, operating efficiencies and technology-led interventions already implemented at our plants. We believe growth and margin expansion can go hand in hand when backed by execution discipline, cost control, and sustained demand across global markets.
What are your plans for new investments in capacity expansion, modernisation, or technology up-gradation in the next 12 to 24 months? What utilisation levels are you aiming for?
Over the next 12 to 24 months, our expansion strategy is firmly centred on technology-led growth and modernisation, rather than only incremental capacity addition. We are investing in advanced machinery, process automation, and productivity-enhancing technologies across key stages of our manufacturing value chain. These investments are aimed at improving fabric quality, reducing processing time, enhancing consistency, and lowering per-unit operating costs.
At the same time, we are focused on optimising utilisation across our existing dyeing and processing capacities, supported by growing export orders and a stronger product mix. As these technology upgrades stabilise, we expect utilisation levels to improve steadily, translating into better operating leverage. Our approach to expansion is disciplined and forward-looking, designed to support scale, efficiency, and competitiveness in global markets while maintaining balance-sheet strength.
Are you planning to venture more into Man-made Fibre (MMF), technical textiles, or sustainable fabric segments?
We are actively building depth in sustainable and value-added fabric segments, which we see as a long-term growth driver for the business. While cotton and blended denim continue to remain strong pillars for us, we are steadily expanding our capabilities to meet growing global demand for responsibly manufactured and performance-driven fabrics. Our certifications support this direction and enable us to work closely with international customers that prioritise compliance and sustainability.
At the same time, we are evaluating opportunities across MMF and specialised fabric categories in a calibrated manner, aligned with customer demand and market viability. Our focus is on scaling segments where we can leverage our existing processing strengths, sustainability infrastructure and technical expertise to create differentiated offerings rather than commoditised volumes.
Given the global tariff shifts, raw material costs and supply chains are under stress. How are you managing tariff-driven cost pressures and what strategies are in place to mitigate margin risks?
Global tariff shifts and supply-side volatility have certainly added complexity to the operating environment, but they have also pushed us to be far more deliberate about how and where we grow our export business. While tariff tensions continue to create short-term pricing and sourcing volatility across global trade routes, we see them as a reason to accelerate market diversification rather than slow down our export ambitions. We continue to service established markets such as Bangladesh and South Africa, while consciously expanding our footprint across Latin America, including Mexico and Panama and Africa.
The recently secured Rs 100 crore merchant export order from Kiran Enterprises strongly validates this strategy. It opens access to markets such as Nigeria, Egypt, Morocco, Turkey and South Africa, with dispatches beginning January 2026, providing export visibility into FY26. Alongside diversification, we are mitigating cost pressures through sourcing discipline, yield improvements, energy-efficiency initiatives, and pricing aligned with long-term customer partnerships.
How is the textiles industry, at large, mitigating the risks arising due to tariffs? What newer markets are being explored, what policy measures are being discussed and expected?
Vishal Fabrics’ growing presence across multiple international markets reflects this broader industry shift toward export diversification. The Indian textile industry, at large, is responding to tariff-related challenges by consciously reducing dependence on a few geographies and expanding into regions such as Africa, the Middle East, Turkey, Latin America and select Asian markets. Alongside market diversification, companies are strengthening regional supply chains to improve resilience and reduce cost volatility.
On the policy front, there is active engagement with policymakers around free trade agreements (FTAs), continuation and rationalisation of Remission of Duties and Taxes on Exported Products (RoDTEP) benefits, logistics cost optimisation, and faster execution of PLI and Technology Upgradation Fund Scheme (Tufs)-linked technology upgrades. At the same time, the industry is focusing more sharply on value-added fabrics and sustainable manufacturing, which tend to face lower pricing pressure and enjoy steadier global demand.
What policy reforms or regulatory support would you like to see from the government to help companies like Vishal Fabrics become more competitive globally?
India has made meaningful progress in strengthening the textile manufacturing ecosystem and continued policy support can further accelerate global competitiveness. Faster execution of free trade agreements, greater clarity and stability around duty structures, and continuity of export incentives such as RoDTEP will help manufacturers plan growth with confidence. Enhanced support under technology upgradation schemes can also play a key role in enabling investments in modern, efficient, and sustainable processing infrastructure.
For companies like Vishal Fabrics, policies that encourage green manufacturing, energy efficiency, and logistics optimisation align well with our long-term strategy. A stable and predictable policy environment allows manufacturers to scale responsibly, deepen export penetration, and strengthen India’s position as a reliable global sourcing hub.
Vishal Fabrics recently secured a Rs 100 crore merchant export order from Kiran Enterprises. How significant is this deal for your export portfolio and what does it signal about the company’s global demand outlook for the coming year?
The Rs 100 crore merchant export order from Kiran Enterprises is a meaningful addition to our export portfolio. It strengthens our presence across Nigeria, Egypt, South Africa, Turkey, Morocco and Lesotho, while improving export visibility into FY26. Dispatches beginning January 2026 provide revenue certainty and support higher capacity utilisation.
More importantly, the order reflects long-standing trust in our execution capabilities, quality standards, and ability to deliver large volumes within tight timelines. It also signals sustained global demand for Indian-made denim from diversified geographies beyond traditional Western markets.
What are the biggest risks you foresee over the next year (2026), and where do you see the greatest opportunities for Vishal Fabrics to grow or consolidate its market position? What is the sector outlook for 2026?
Looking ahead to 2026, volatility in raw material prices, geopolitical disruptions and demand uncertainty remain key risks for the textile sector. However, opportunities are emerging through market diversification, premiumisation, and sustainable sourcing. Vishal Fabrics sees scope to consolidate its position by leveraging customer relationships, compliance standards, and operational reliability.
The sector outlook remains cautiously optimistic, supported by India’s scale, improving infrastructure, and global brands seeking diversified sourcing beyond traditional hubs. Companies that manage costs well and deliver consistency are likely to outperform.
