Record Revenue and Strategic Growth …

This article first appeared on GuruFocus.

• Revenue: INR2,373 crores, up 14% year-on-year.

• EBITDA: INR286 crores, up 15% with a margin crossing 12%.

• Profit After Tax (Before Exceptional Items): INR125 crores, reflecting a 17% year-on-year growth.

• Denim Fabric Volume: 13.9 million meters, growth of 16%.

• Woven Fabric Volume: 36.7 million meters, growth of 5%.

• Garmenting Volume: 10 million pieces, representing 11% increase year-on-year.

• AMD Division Revenue: INR496 crores, highest ever quarterly revenue.

• AMD EBITDA: INR77 crores, growth of 36% with a margin of 15.5%.

• Return on Capital: Improved by 150 basis points to 16%.

• Growth CapEx: INR348 crores spent in the first 9 months of FY26.

• Net Debt: Remains stable and broadly in line with March 2025 level.

Release Date: January 30, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Arvind Ltd (BOM:500101) reported a strong quarter with growth in both the textile and advanced material divisions despite challenging geopolitical conditions.

• The company achieved its highest ever quarterly revenue and EBITDA, with revenue standing at INR2,373 crores, up 14% year-on-year.

• The advanced material division reported a revenue and EBITDA growth of 32% and 36%, respectively, indicating strong performance across its subsegments.

• Arvind Ltd (BOM:500101) improved its S&P 500 ESG score from 68 to 73, ranking 6th globally among 176 participants, which enhances its appeal to Europe-based customers.

• The company maintained stable net debt levels and received an AA rating with a stable outlook for its AMD business, highlighting strong cash flows and financial discipline.

• Geopolitical volatility remains a significant challenge, with potential impacts on trade and market stability.

• The company faces tariff-related discounts, which have impacted margins, although cost-saving initiatives have helped mitigate some effects.

• There is a high dependency on the Bangladesh market for fabric exports, which poses a risk if disruptions occur in that region.

• The garmenting division, while showing growth, still has a relatively small capacity compared to the fabric portfolio, limiting vertical integration.

• The company is cautious about expanding fabric capacity, focusing instead on garmenting, which may limit immediate growth opportunities in the fabric segment.

Q: What is driving the double-digit volume growth in the denim and domestic business, and how sustainable is it in the near to mid-term? A: Punit Lalbhai, Executive Vice Chairman of the Board, explained that the growth reflects full capacity utilization in denim for the first time in a long time. The growth is expected to continue vertically, with a focus on garmenting expansion rather than fabric alone. The product mix in woven fabrics has improved, contributing to growth despite flat realizations due to cotton price adjustments.