Arvind Ltd Q1 FY27 Results (NSE: ARVIND)
Signal: Margin expansion
The read
The operating trajectory improved sharply, with consolidated revenue up 24.7%, EBITDA up 38.6% and margin expanding 104bps to 10.3%, led by volume growth and Advanced Materials; however, the quality of reported PAT is weak this quarter because ₹22.6 Cr of acquisition costs, ₹10.6 Cr of incremental interest and ₹10.7 Cr of intangible amortisation offset much of the operating progress.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,500.96 Cr | 24.7% | N/A |
| EBIT | ₹164.98 Cr | 40.8% | |
| Net profit | ₹53.45 Cr | 0.4% | |
| EPS | ₹2.04 | 0.5% | |
| EBIT margin | 10.3% |
P&L walk
Consolidated revenue grew 24.7% and EBITDA grew 38.6%, with margin expanding to 10.3%, but ₹22.6 Cr of acquisition-related exceptional costs, ₹10.6 Cr of incremental interest and ₹10.7 Cr of incremental intangible amortisation limited reported PAT growth to 0.4%.
Segments
Advanced Materials was the clear consolidated driver, with revenue up 85% to ₹650 Cr and EBITDA up 115% to ₹97 Cr, while standalone revenue grew only 0.8% and standalone PAT fell 35.3% to ₹37.29 Cr.
Key positives
- Consolidated revenue rose 24.7% to ₹2500.96 Cr, supported by denim volume growth of 34%, woven volume growth of 7% and garmenting volume growth of 13%.
- EBITDA grew 38.6% to ₹258.1 Cr and margin expanded 104bps to 10.3%, despite approximately ₹19 Cr of textile raw-material cost pressure.
- Advanced Materials revenue increased 85% to ₹650 Cr and EBITDA rose 115% to ₹97 Cr at a 15.0% margin, with India revenue up 40% to ₹493 Cr.
- Dalco-GFT added ₹157 Cr of revenue and ₹24 Cr of EBITDA in approximately 1.8 months, expanding Arvind's US technical-textiles exposure.
- Garmenting volume crossed 11 Mn pieces for the first time, while denim volume of 17.5 Mn metres was the highest in sixteen quarters.
Key concerns
- Textile EBITDA margin declined to 8.0% from 8.4% as approximately ₹19 Cr of higher raw-material costs curtailed margin expansion.
- Standalone EBITDA fell 18.9% to ₹142.11 Cr and standalone PAT fell 35.3% to ₹37.29 Cr, indicating that the consolidated improvement is heavily dependent on subsidiaries and the acquired business.
- Net debt increased to ₹2158 Cr from ₹1172 Cr at 31 March 2026 following the Dalco-GFT acquisition, increasing financing sensitivity despite the planned QIP-funded deleveraging.
- Garmenting revenue growth was moderated by a higher contribution from value-segment products despite 13% volume growth.
Earnings quality: includes other income and an exceptional item
Research and educational content only. Not investment advice.