Arvind (500101) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 began amid ongoing uncertainty around U.S. tariffs, impacting demand and planning cycles, but all business segments maintained steady volumes despite margin pressures from higher air freight and discounting.

• Garmenting achieved its highest-ever quarterly revenue, with volumes nearing 10 million pieces and a strong order book for Q2.

• AMD secured a significant mass transport order (~INR 200 crore over 4-5 years) for the Vande Bharat program.

• Proactive cost optimization, vendor renegotiations, and operational efficiency initiatives are underway.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26 and appointed a new internal auditor effective July 29, 2025.

Financial highlights

• Consolidated revenue grew 10% year-over-year to INR 2,006.32 crore in Q1 FY26; standalone revenue was INR 1,811.89 crore.

• EBITDA increased 14% year-over-year to INR 186 crore, with an EBITDA margin of 9.3%.

• Profit after tax rose 35% year-over-year to INR 54.70 crore (consolidated); standalone net profit was INR 57.67 crore.

• Textile division revenue up 14% to INR 1,536 crore; AMD revenue at INR 351 crore, both with improved margins.

• Standalone EPS for Q1 FY26 was INR 2.20; consolidated EPS was INR 2.03.

Outlook and guidance

• Q2 expected to be more stable operationally, with a healthy order pipeline across segments and margin normalization anticipated in H2 FY26.

• Garment volume growth for FY26 guided at 14%-17%; AMD expected to grow in mid-teens.

• Full-year FY26 capex expected at INR 450–475 crore, with INR 100 crore invested in Q1.

• UK FTA expected to boost demand for Indian textiles and double UK business in coming years.

• Board approved a scheme for transfer of the Advanced Materials division to a wholly owned subsidiary, pending NCLT sanction.