Arvind Limited – Investor Presentation Summary
Key Operational Highlights
- Garmenting volumes crossed 11 million pieces for the second consecutive quarter.
- Woven Fabric production stood at 34 million meters.
- Advanced Materials Business (AMB) India commissioned the 4th line of its Needle Felt Non-Woven platform, unlocking annual revenue potential of ~₹70 Cr.
- Phase-1 of the Varanasi Garmenting Project was successfully completed, with an annual revenue potential of ~₹250 Cr.
- Established a denim design & marketing hub in Amsterdam, marking its second international hub after London.
Key drivers of operational performance: Focus on growth, higher verticalization in textiles, broad-based volume growth in AMB, and integration of Dalco-GFT acquisition.
Segment-wise Performance
- Textiles: Revenue ₹1999 Cr (10.9% YoY growth), EBITDA ₹190 Cr, EBITDA Margin 9.5%, ROCE 13.2%
- Advanced Materials India: Revenue ₹550 Cr (23.3% YoY growth), EBITDA ₹78 Cr, EBITDA Margin 14.2%, ROCE 31.0%
- Dalco-GFT: Revenue ₹256 Cr, EBITDA ₹41 Cr, EBITDA Margin 16.0%, ROCE 36.8%
- AMB Total: Revenue ₹805 Cr (80.8% YoY growth), EBITDA ₹119 Cr, EBITDA Margin 14.8%, ROCE 19.1%
- Others: Revenue ₹191 Cr, EBITDA ₹23 Cr
Explanation of significant changes in segment performance: Textiles growth driven by higher verticalization and realization gains across Denim, Woven and Garmenting. AMB growth driven by Dalco-GFT integration and strong performance in India business.
Financial Highlights
Revenue: ₹2919 Cr
EBITDA: ₹331 Cr
PAT: ₹123 Cr
EPS: Not Specified
Margins: EBITDA Margin 11.4%
YoY/QoQ comparison: Revenue up 23% YoY, EBITDA up 27% YoY, PAT up 16% YoY. EBITDA margin improved by ~110 bps QoQ and ~40 bps YoY.
Drivers of financial performance: Higher revenue growth, increased share of AMB, operational efficiency, partially offset by escalated cost matrix.
Comparison to market estimates: Not Specified
Key Risks: Higher raw material costs (Cotton, Yarn, DCH), geopolitical headwinds, higher logistics costs, disrupted supply chain.
Geographical Revenue Split
Domestic vs Export/Regional Revenue: Not Specified
Regional Breakdown: Not Specified
Balance Sheet Snapshot
Net Debt/Equity: Not Specified
Reserves: ₹3977 Cr
Current Assets/Liabilities: Not Specified
Working Capital/Leverage Metrics: Not Specified
Financial Health Insights: Credit rating upgraded from "AA-" to "AA". Cash and cash equivalents stood at ₹602 Cr.
Capex & Cash Flow Health
Capital Expenditure: Expected to cross ₹500 Cr in full year FY27
Free Cash Flow: Not Specified
Operating Cash Flow: Not Specified
Net Debt Movement: Borrowings increased to ₹2651 Cr from ₹1441 Cr (Mar 2026), mainly due to ~₹1000 Cr loan taken to fund Dalco acquisition.
Investment Rationale: Focus on capacity expansion, technology upgrades, and integration of acquisitions.
Strategic & R&D Initiatives
Investments in Innovation: New product development in Tactical Gear for Protective Gear segments, CSM Line & Carbon pultrusion facility in Composites segment.
Expected impact on growth: AMB India expected to achieve ~18% revenue and EBITDA growth with stable margin of 14-15%.
Strategic Rationale: Proximity to key European customers through international hubs, expanding into high-growth markets like defense, aerospace, and renewable energy.
Industry Trends & Business Environment
Macro/Industry Trends: Defense, aerospace and renewable energy spending remains strong. Early festive-season trends are encouraging. US market presents mixed signals with strong GDP growth but higher interest rates. EU apparel market is stabilizing. India-EU FTA expected to provide tailwind.
Impact on Company: Supporting demand for composites, protective materials and technical textiles. Providing support for domestic Textile business. Raw material cost escalation continues to challenge operating environment.
Management Commentary & Growth Outlook
Strategic Outlook: Company remains focused on executing mitigation measures effectively to offset raw material cost pressures and support margin resilience.
FY Guidance: AMB India expected to achieve ~18% revenue and EBITDA growth with stable margin of 14-15%. Dalco margin to remain stable at 15-16%. Textile segment expected to achieve early double digit revenue growth, while margin may remain at current levels.
Market Share Targets: Not Specified
Risks and Opportunities: Persistent raw material cost escalation, geopolitical headwinds, but demand scenario remains stable.