Arvind (500101) Q4 25/26 earnings summary

Executive summary

• Achieved record consolidated revenue and EBITDA for FY26, both growing at double-digit rates year-over-year, with strong volume and revenue growth across all core segments despite macroeconomic disruptions and tariff headwinds.

• Advanced Materials and garmenting businesses delivered double-digit growth, supported by capacity expansion, product innovation, and robust execution.

• Entered the U.S. market via acquisition of Dalco-GFT for $136 million, marking entry into the world's largest technical textile market and expected to be margin and EPS accretive.

• Maintained disciplined capital allocation, reducing net debt and strengthening the balance sheet, with significant improvement in free cash generation post-capex.

• S&P 500 ESG score improved to 73, ranking 6th globally and 2nd in India.

Financial highlights

• FY26 consolidated revenue grew 12% year-over-year to ₹9,303 crore; EBITDA up 15% to ₹1,061 crore; PAT before exceptional items up 21% to ₹444 crore.

• Q4 FY26 revenue at ₹2,553 crore (up 15% YoY), EBITDA at ₹327 crore (up 19% YoY), with EBITDA margin improving by 200 bps.

• EPS (consolidated, basic) for FY26 was ₹15.80, compared to ₹13.51 in FY25.

• Net debt reduced by ₹112 crore to ₹1,172 crore, driven by strong free cash generation.

• Dividend of ₹4.5 per share recommended, representing a 28.5% payout of profit after tax.

Outlook and guidance

• Entering FY27 with a healthy order book and strong inquiry pipeline; expects double-digit revenue growth, high double-digit growth in Advanced Materials, and mid-teen growth in garments.

• Margin pressure anticipated in H1 FY27 due to rising input costs; margin recovery expected in H2, contingent on easing geopolitical tensions.

• Planned CapEx of ₹450–500 crore for FY27, funded through internal accruals; Dalco acquisition impact to be detailed in the next quarter.

• The company continues to monitor regulatory changes, including labor codes and tax amendments, and will assess future impacts accordingly.