Varvee Global swings to profit as debt drops 97%
The company, formerly Aarvee Denims, posted an EBITDA of ₹5.37 crore for FY26, a sharp reversal from the prior year's ₹89.90 crore loss.
— 2 earlier stories on Varvee Global Ltd. →What's new
- Varvee Global reported an EBITDA of ₹5.37 crore for FY26.
- Total debt fell by 97% to ₹2.87 crore.
- Production capacity expanded by 50% to 18 lakh meters per month.
Why this matters
The company has moved from a deep loss-making position to near-zero debt in a single year. This shift away from legacy denim into higher-margin fabrics appears to be the primary driver of its survival.
What we're watching
- Whether the new non-denim product line can sustain these margins.
- How the company plans to utilize its expanded 18 lakh meter capacity.
- Any further movement in credit ratings now that legacy defaults are cleared.
The full read
Varvee Global, formerly known as Aarvee Denims, has completed a turnaround in FY26. The company reported an EBITDA of ₹5.37 crore, a stark contrast to the ₹89.90 crore loss it recorded in the previous fiscal year.
It survived.
This recovery follows a pivot toward higher-margin non-denim fabrics and a restructuring that cleared legacy default ratings from India Ratings. The company is now nearly debt-free, having slashed its total borrowings by 97% to just ₹2.87 crore. Alongside this balance-sheet cleanup, Varvee expanded its production capacity by 50%, moving from 12 lakh to 18 lakh meters per month. For a nano-cap firm, these metrics represent a survival milestone that leaves the next test clear: whether the new business model can maintain this profitability as the company scales its increased production capacity across the coming quarters.
Questions answered
- What was the primary driver of the profit turnaround?
- Varvee shifted its business model away from legacy denim fabrics into higher-margin non-denim shirtings. This transition, paired with a successful restructuring, moved the company from a loss of ₹89.90 crore to an EBITDA of ₹5.37 crore.
- How much debt does the company have left?
- Following a 97% reduction, the company's total borrowings now stand at ₹2.87 crore.
- Has the company expanded its production capacity?
- Yes, it increased its production capacity by 50%, moving from 12 lakh meters per month to 18 lakh meters per month.
- What happened to the company's credit ratings?
- The company successfully completed a restructuring process that resulted in the removal of legacy default credit ratings by India Ratings.
Story so far
All notes on VGL →- 27 May 2026 · 9:04 PM IST Varvee Global swings to profit as debt drops 97%
- today Varvee Global reports ₹28.59 cr loss as textile manufacturing stops
- today Varvee Global pivots to renewables with new subsidiary