Arvind (500101) Q4 24/25 earnings summary

Executive summary

• Achieved strong operational and financial recovery in Q4 FY25 after a turbulent year marked by labor unrest, demand fluctuations, and geopolitical uncertainties.

• Textile and Advanced Materials Divisions (AMD) posted robust volume growth and improved operational efficiency, with AMD achieving double-digit topline growth in Q4.

• Garmenting division saw significant volume growth, with over 9 million pieces in Q4 and new marquee customers onboarded.

• Regained No.1 position in India for S&P DJSI sustainability and received top water security rating from CDP.

• Audited standalone and consolidated financial results for FY25 were approved, with auditors issuing unmodified opinions.

Financial highlights

• FY25 consolidated revenue reached ₹8,329 crore with EBITDA of ₹919 crore (11% margin); Q4 revenue was ₹2,221 crore, up 7% YoY, with EBITDA of ₹275 crore (12.4% margin, highest in 16 quarters).

• FY25 consolidated net profit was ₹367.38 crore, up from ₹352.63 crore in FY24; EPS (basic) was ₹13.51.

• Profit before tax for FY25 was ₹494 crore (7% growth); PAT before exceptionals up 6% to ₹353 crore.

• Free cash flow from operations was ₹760 crore, funding CapEx of over ₹480 crore.

• Dividend of ₹3.75 per share recommended, totaling ₹98 crore (28% of PAT).

Outlook and guidance

• Short-term margin pressure expected in Q1 and Q2 FY26 due to tariff changes and cost-sharing with customers; margins expected to normalize within 3-4 months.

• Robust demand outlook, with volume growth in both garments and specialty fabrics anticipated; UK FTA and potential US bilateral treaty offer new opportunities.

• CapEx guidance for FY26 is ₹450-475 crore, with garment capacity targeted to reach 50 million by year-end and 60 million in 18 months; non-critical capex paused pending tariff clarity.

• No explicit FY26 financial guidance provided due to prevailing uncertainty.