India's Arvind Ltd posts 8% YoY rise in Q2 FY26 revenue to $267.4 mn

EBITDA grew 13 per cent to ₹262 crore (~$29.6 million), with the margin improving 41 basis points (bps) to 11 per cent, while profit after tax (PAT) surged 70 per cent to ₹107 crore (~$12.1 million) from ₹63 crore (~$7.1 million) in Q2 FY25. The performance reflects steady demand, operational efficiency, and resilience amid global trade disruptions and tariff headwinds, Arvind Ltd said in a press release.

During the quarter, the company achieved robust volume growth across its key businesses. Denim fabric volumes rose 16 per cent to 15.2 million metres, woven fabric increased 8 per cent to 35.1 million metres at full capacity, and the garmenting division delivered a record 10.7 million pieces, up 17 per cent, supported by capacity utilisation, new client additions, and enhanced vertical integration.

The Advanced Materials Division (AMD) regained traction with improved realisations and stronger demand in the industrial segment, while the protective gear business benefitted from renewed defence orders. The company said its efforts to expand product diversification and strengthen client relationships reflect the success of its verticalisation strategy, even as it absorbed part of the tariff burden.

In Q2 FY26, the textile division posted revenue of ₹1,803 crore (~$203.4 million) and EBITDA of ₹180 crore (~$20.3 million) with a 10 per cent margin. The garmenting division achieved its highest-ever quarterly revenue at ₹528 crore (~$59.6 million), driven by a healthy product mix and stable realisations. The AMD division recorded revenue of ₹446 crore (~$50.3 million), up 14.9 per cent, and EBITDA of ₹60 crore (~$6.8 million), translating to a 13.6 per cent margin (15.2 per cent excluding tariff impact).

For the first half (H1) of FY26, revenue rose 9 per cent to ₹4,377 crore (~$493.7 million), EBITDA increased 13 per cent to ₹448 crore (~$50.5 million) with a 10.2 per cent margin, and PAT advanced 52 per cent to ₹161 crore (~$18.1 million), Arvind Ltd said in a press release.

The company’s return on capital employed (ROCE) improved by 50 basis points to 14.4 per cent (17.2 per cent normalised), while capital expenditure during H1 FY26 stood at ₹220 crore (~$24.8 million).

The overall margin improvement was constrained by partial tariff absorption, which cost the company ₹23 crore (~$2.6 million) in Q2 and ₹38 crore (~$4.3 million) in H1 FY26. Excluding tariff-related effects, Arvind’s margin would have aligned with its medium-term trajectory of around 12 per cent in Q2.

In structural developments, AMD has been officially transferred and merged with Arvind Advanced Materials Limited (AAML), a wholly owned subsidiary, following the National Company Law Tribunal (NCLT) order dated August 7, 2025.

For the third quarter (Q3) of FY26, Arvind Ltd forecasts 18–20 per cent revenue growth for AMD and mid-teen growth in garmenting volumes driven by capacity expansion. Tariff-related EBITDA impact is estimated at ₹25–30 crore per quarter, which will be partly offset by cost optimisation and operational efficiencies. The annual capital expenditure plan has been revised to ₹400–450 crore (~$45.1–50.7 million) through selective deferral of non-critical projects.

Arvind said it continues to view ongoing global disruptions as opportunities to reshape supply chains and strengthen its position as a trusted, resilient partner for international brands. With an integrated value chain, diversified portfolio, and disciplined execution, the company remains well positioned to sustain its growth momentum and competitive edge in a volatile global landscape, added the release.

ALCHEMPro News Desk (SG)