Arvind (500101) Q3 25/26 earnings summary

Executive summary

• Achieved strong double-digit growth in both revenue and profit for Q3 FY26, driven by robust performance in textiles, advanced materials, and garmenting, despite global trade and geopolitical disruptions.

• Key growth engines included Advanced Materials Division (AMD) and Garmenting, with AMD revenue up 32% and Garmenting up 23% year-over-year.

• Sustainability initiatives led to a global ESG rank of 6th by S&P DJSI, with a score of 73.

• Financials reflect the impact of the demerger of the Advanced Materials Undertaking, now reported as a discontinued operation in standalone results.

• Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed by the Board and auditors.

Financial highlights

• Consolidated revenue for the quarter was ₹2,372.64 crore, up from ₹2,089.21 crore year-over-year; standalone revenue was ₹1,842.26 crore, up from ₹1,588.27 crore.

• EBITDA for the quarter at ₹286 crore, up 15%, with margin crossing 12% for the first time; PAT before exceptionals at ₹125 crore, up 17% year-over-year.

• Denim fabric volume reached 13.9 million meters, up 16% year-over-year; woven fabric volume at 36.7 million meters, up 5%; Garmenting delivered 10 million pieces, up 11%.

• AMD reported highest ever quarterly revenue at ₹496 crore, EBITDA ₹77 crore (+36%), margin 15.5%.

• Consolidated profit for the period attributable to equity holders was ₹91.03 crore, with total comprehensive income at ₹94.37 crore; EPS (consolidated, basic) for the quarter was ₹3.72.

Outlook and guidance

• Q4 expected to mirror Q3 performance, with continued demand and growth trajectory; Textile revenue expected to grow 10–12% for FY26, AMD projected to achieve 17–20% revenue growth.

• AMD targets 18%-20% CAGR growth and 14%-15% EBITDA margin over the medium term, acknowledging quarterly variability.

• Full-year margins expected to remain stable after absorbing tariff impacts of ~₹90 crore.

• The group is actively monitoring US tariff developments and implementing mitigation strategies, including supply chain adjustments, pricing, and operational efficiency improvements.

• Anticipates growth opportunities from ratified UK and EU FTAs, with duty-free access expected to boost apparel exports and reduce US dependency.