Arvind reports record revenue growth as EBITDA jumps 39% in Q1 FY27

Arvind reports record revenue growth as EBITDA jumps 39% in Q1 FY27

Arvind reports record revenue growth as EBITDA jumps 39% in Q1 FY27​

Arvind Ltd., a leading textile, apparel, and technical textile company, announced its unaudited financial results for the first quarter of fiscal year 2026-2027 (Q1 FY27) on August 12, 2026. The results reflect continued strong demand scenarios across key business segments, resulting in record revenue and significant EBITDA growth despite evolving geo-economic developments and input cost pressures.

The company recorded consolidated revenue of ₹2,501 Cr and an EBITDA of ₹258 Cr for the quarter, marking a 25% increase in revenue and a 39% rise in EBITDA year over year (YoY). The EBITDA margin improved by approximately 100 basis points (bps) to 10.3%.

Key Financial Performance Indicators​

The quarterly performance metrics show robust growth across the company’s core areas:

ParticularsQ1 FY26Q1 FY27YoY Change
Revenue2006 Cr2501 Cr25%
EBITDA186 Cr258 Cr39%
EBITDA %9.3%10.3%104 bps
PAT (Profit After Tax)55 Cr80 Cr47%

Operational and Segment Highlights​

The quarter saw healthy volume momentum across all core textile businesses, supported by higher vertical integration and investment in product innovation. Garmenting volumes crossed 11 million pieces for the first time, registering 13% growth.

Other operational highlights included:
  • Denim fabric volumes reached 17.5 million metres, showing a 34% increase.
  • Woven fabric volumes stood at 31.2 million metres, up 7%, indicating sustained demand.

The Advanced Materials Business (AMB) also performed strongly, reporting revenue of ₹650 Cr (up 85%) and EBITDA of ₹97 Cr (up 115%), achieving a margin of 15%. The India business within AMB grew by 40%, generating ₹493 Cr in revenue and ₹74 Cr in EBITDA.

The acquisition of Dalco-GFT, Arvind’s largest ever transaction to date, expanded the technical textile portfolio into four strategic segments: Automotive, Geotextiles, Industrial, and Furniture & Furnishings, providing access to a Total Addressable Market (TAM) of approximately US$2.5 billion in the U.S.

Division and Acquisition Details​

Financial highlights by division and segment are detailed below:

SegmentRevenueEBITDAMargin/Growth Notes
Textile Division₹1,735 Cr (up 13%)₹139 CrMargin curtailed due to input cost increase of ~₹19 Cr.
Garmenting Division₹497 CrN/ASupported by 13% volume growth; revenue moderation noted due to value-segment product mix contribution.
Advanced Materials Business (AMB)₹650 Cr (up 85%)₹97 Cr (up 115%)Margin at 15%; India business grew by 40%.
DalcoGFT₹244 Cr₹40 CrDelivered revenue for a ~1.8 month operational period; achieved 16.3% margin.

The company also highlighted that the Human Protection segment benefited from normalization in defence procurement activity in India and easing tariff-related pressures in the USA, while the Composites business gained momentum from renewable energy and mobility applications.

Financial Reinforcement and Capex​

Arvind Ltd. recently completed a Qualified Institutions Placement (QIP) of ₹500 Cr, which was significantly oversubscribed by marquee investors. The proceeds from this issuance are designated primarily for debt reduction and strengthening the balance sheet.

For the quarter, the company spent approximately ₹98 Cr on various capital expenditure projects. Depreciation costs included an additional ₹10.7 Cr arising from the amortisation of intangible assets related to the acquisition of Dalco-GFT. Finance costs also reflected an incremental ₹10.6 Cr relating to the US$110 Mn loan taken for the transaction.

Guidance for Q2 FY27​

Looking ahead, Arvind remains confident in navigating short-term challenges through its diversified portfolio and disciplined capital allocation. The company anticipates several factors that could create incremental growth opportunities:
  • The UK-India FTA and improving domestic demand are expected to support the textile sector.
  • Demand across Textiles and AMB remains resilient due to healthy order books.
  • AMB is focusing on higher value customer programs, supported by traction in defense and allied businesses.

While managing raw material availability and cost escalation remains a focus, management has developed mitigation plans to ensure margin resilience. The company also confirmed that all growth capex projects are on track, with planned investments of ₹450 -₹500 Cr slated for FY27.

ARVIND Stock Price Movement​

Shares of Arvind Limited slipped by 0.38% on Wednesday to close at ₹566.85, reflecting the stock's move down. The equity saw a volume of 405,680 shares traded during the session.
 

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