Arvind Ltd Q2 FY27 Results (NSE: ARVIND)
Signal: Steady quarter
The read
The trajectory improved from Q1FY27: revenue growth accelerated to 23% from 24.7%? No—Q2FY27 revenue of ₹2,919 Cr is 23% YoY versus Q1FY27's 24.7% YoY, but EBITDA margin expanded to 11.4% from 10.0% and Advanced Materials supplied the incremental earnings; the key risk remains whether partial raw-material pass-through can protect textile margins.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,919 Cr | 23% | N/A |
| EBIT | ₹331 Cr | 27% | |
| Net profit | ₹123 Cr | 16% | |
| EBIT margin | 11.4% |
P&L walk
Consolidated revenue reached ₹2,919 Cr, up 23% YoY, while EBITDA rose 27% to ₹331 Cr and margin expanded 40bps to 11.4%; Advanced Materials and Dalco-GFT integration lifted the mix, partly offset by raw-material, utility and freight inflation.
Segments
Advanced Materials was the primary driver: AMB revenue rose 81% YoY to ₹805 Cr and EBITDA rose 97% to ₹119 Cr, while Textiles grew 11% to ₹1,999 Cr but its EBITDA margin fell to 9.5% from 10.0% as raw-material inflation absorbed approximately 75bps.
Key positives
- Advanced Materials revenue reached ₹805 Cr, up 81% YoY, and EBITDA reached ₹119 Cr, up 97%, with a 14.8% segment margin versus 13.6% last year.
- AMB India revenue rose 23% to ₹550 Cr and EBITDA rose 29% to ₹78 Cr, with 14.2% margin and volume-led demand across industrial, infrastructure, mobility and specialty applications.
- Consolidated EBITDA increased 27% to ₹331 Cr and margin expanded 40bps YoY to 11.4%, while Q2 margin improved 110bps sequentially.
- Denim volumes rose 19% to 18.1 million metres and garmenting volumes increased 3% to 11.1 million pieces, evidencing volume support alongside improved realisations.
- The Varanasi garment facility's Phase 1 has annual revenue potential of approximately ₹250 Cr, while the fourth Needle Felt Non-Woven line has annual revenue potential of approximately ₹70 Cr.
Key concerns
- Textile EBITDA margin declined 50bps YoY to 9.5%, with management attributing approximately 75bps of margin impact to higher cotton, yarn and DCH costs and only partial customer pass-through.
- Interest cost rose 73% YoY to ₹71 Cr and depreciation rose 49% to ₹107 Cr, including acquisition-related charges, limiting PAT growth to 16% versus 27% EBITDA growth.
- Consolidated borrowings increased to ₹2,651 Cr from ₹1,441 Cr at 31 March 2026, mainly because of approximately ₹1,000 Cr of debt-funded Dalco-GFT acquisition financing.
- Q3 guidance still flags raw-material inflation, global uncertainty and cautious consumer demand as near-term constraints despite healthy demand in selected end markets.
Research and educational content only. Not investment advice.