Arvind (500101) Q3 25/26 earnings summary

Executive summary

• Achieved strong double-digit growth in both textile and advanced materials segments, reflecting a resilient business model and strong operational execution despite global trade and geopolitical disruptions.

• Maintained margins through cost-saving initiatives and favorable macroeconomic conditions, with improved S&P 500 ESG score to 73, ranking 6th globally and 2nd in India.

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

• Duty-free access to UK and EU markets via FTAs expected to drive future growth and reduce US dependency.

• Cautiously optimistic outlook with expectations for Q4 performance to mirror Q3.

Financial highlights

• Consolidated revenue reached ₹2,373 crore, up 14% year-over-year; EBITDA grew 15% to ₹286 crore; PAT before exceptionals rose 17% to ₹125 crore.

• Denim fabric volume grew 16% year-on-year to 13.9 million meters; woven fabric volume up 5% to 36.7 million meters; Garmenting delivered 10 million pieces, up 11% year-on-year.

• Advanced Materials Division (AMD) revenue up 32%, EBITDA up 36%; AMD revenue at ₹496 crore, EBITDA margin 15.5%.

• Textile Division revenue at ₹1,717 crore (+9%), EBITDA ₹193 crore (margin 11.2%); Garmenting revenue at ₹493 crore (+23%).

• Standalone profit after tax from continuing operations was ₹62.22 crore; consolidated profit for equity holders was ₹91.03 crore.

Outlook and guidance

• Q4 expected to perform similarly to Q3, with continued demand and growth trajectory; full-year margins expected to remain stable after absorbing tariff impacts.

• Advanced Materials Division targets 18%-20% CAGR growth and 14%-15% EBITDA margin over the medium term.

• Textile (Fabrics & Garmenting) revenue expected to grow 10–12% for FY26; AMD projected to achieve 17–20% revenue growth.

• Garmenting to remain the focus for investment and expansion, especially with FTAs opening new markets.

• The group is actively monitoring US tariff developments and implementing mitigation strategies.