Arvind Ltd, one of India's leading textile, apparel and technical textile companies, reported its highest-ever quarterly revenue and EBITDA for the September quarter of FY27, supported by strong momentum in its Advanced Materials Business (AMB) and resilient demand across key segments, even as rising input costs continued to pressure margins.
The company reported consolidated revenue of Rs 2,919 crore for Q2 FY27, up 23% year-on-year (YoY), while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 27% to Rs 331 crore. Profit after tax (PAT) increased 16% to Rs 123 crore.
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The company also outlined its outlook for the December quarter, with AMB expected to remain a key growth driver even as raw material cost inflation and global uncertainties weigh on the operating environment.
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Arvind Q2 Results: Key Numbers At A Glance
Arvind reported broad-based growth across its key financial metrics in Q2 FY27.
- Revenue: Rs 2,919 crore, up 23% YoY from Rs 2,371 crore.
- EBITDA: Rs 331 crore, up 27% YoY from Rs 262 crore.
- EBITDA margin: 11.4%, compared with 11% a year ago, expanding 40 basis points.
- Profit after tax: Rs 123 crore, up 16% YoY from Rs 107 crore.
For the first half of FY27, revenue rose 24% YoY to Rs 5,420 crore, while EBITDA increased 32% to Rs 590 crore. PAT grew 26% to Rs 204 crore.
Arvind Q3 Guidance: Advanced Materials Business In Focus
Arvind expects its Advanced Materials Business India operations to deliver around 18% revenue and EBITDA growth, with margins remaining stable at 14–15%.
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The company said demand in the AMB India business is being supported by industrial capital expenditure, infrastructure development, mobility and specialty applications.
The Dalco-GFT integration is progressing, with capital expenditure programmes expected to support growth of 15–16% at margins of around 15–16%.
The textile segment is expected to deliver early double-digit revenue growth in Q3 FY27. However, margins could remain around current levels amid elevated cost pressures.
Arvind added that raw material cost inflation continues to weigh on margins, while global uncertainties and cautious consumer demand could pose near-term challenges in select end-use markets.
Advanced Materials Business Drives Growth
Arvind's Advanced Materials Business reported revenue of Rs 805 crore in Q2 FY27, up 81% YoY, while EBITDA rose to Rs 119 crore from Rs 67 crore a year ago. The division's EBITDA margin stood at 15%.
The Dalco-GFT business contributed revenue of Rs 256 crore and EBITDA of Rs 41 crore during the quarter, with an EBITDA margin of 16%.
The company also highlighted strong volume growth across its textile and garment operations.
- Denim fabric volumes increased 19% YoY to 18 million metres, supported by higher demand.
- Woven fabric volumes stood at 34 million metres.
- Garmenting volumes reached 11 million pieces, marking 3% growth.
- Protective Gear (HP) within AMB continued to gain traction, supported by investment in capabilities and new product development.
Rising Input Costs Continue To Pressure Margins
Despite record quarterly revenue and EBITDA, Arvind said rising energy, freight and input costs affected performance during the first half of FY27.
The textile division reported revenue of Rs 1,999 crore in Q2 FY27, up 11% YoY, while EBITDA stood at Rs 190 crore. EBITDA growth was constrained by an estimated 75-basis-point impact from higher input costs, against a normalised comparison base.
The garmenting division reported revenue of Rs 577 crore, supported by 9% volume growth.
Arvind said Western markets remained cautious during the first half, although the quarter saw a more favourable trade position and stronger festive order inflows.
Arvind Expands Global Footprint; Credit Rating Upgraded
During the quarter, Arvind established a European presence through a design and marketing hub in Amsterdam. The centre is expected to strengthen its global network, improve customer engagement and support future growth in the European market.
The company also commissioned Phase 1 of its greenfield garment manufacturing facility in Varanasi, Uttar Pradesh. The facility is expected to serve global customers and support future expansion.
Separately, Arvind's credit rating was upgraded by one notch from AA- to AA, with a stable outlook.
Arvind Capex To Cross Rs 500 Crore In FY27
Arvind expects its ongoing capital expenditure programmes to exceed Rs 500 crore in FY27, supporting capacity expansion and growth across its businesses.
The company said its integrated textile value chain and growing Advanced Materials Business are helping it maintain growth momentum despite cost pressures.
The key monitorables for the coming quarters will be the pace of growth in Advanced Materials, the benefits from the Dalco-GFT integration, the trajectory of raw material costs and the textile segment's ability to protect margins while delivering double-digit growth.
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