Arvind Ltd Reports 44% Rise in Q2 Net Profit to ₹148 Crore on Strong Advanced Materials Growth

Ahmedabad-based textile major Arvind Ltd has reported a 44 per cent year-on-year increase in its consolidated net profit, reaching Rs 148 crore for the second quarter of FY27. The financial growth was supported by strong performance in the Advanced Materials business, higher sales volumes, and improved realisations across textile segments.

During the quarter, the company's revenue from operations rose 23 per cent to Rs 2,919 crore. A significant driver of this growth was the Advanced Materials segment, which recorded an 80 per cent increase in revenue to reach Rs 805 crore. Meanwhile, the core textiles business grew 19 per cent to Rs 2,146 crore, aided by improved realisations across denim, woven fabrics, and garmenting.

The company noted that its denim business benefited from higher volumes and increased vertical integration, while garmenting was supported by a favourable product mix. Garmenting volumes stood at 11 million pieces for the quarter, marking the second consecutive period at that level. However, profitability in the textile division faced pressure from rising raw material prices—including cotton, yarn, dyes, and chemicals—alongside increased utility and freight costs. Arvind stated that partial transmission of these increased costs to customers had an adverse impact of about 75 basis points on normalised textile margins.

Net profit for the quarter was also boosted by a net exceptional gain of Rs 28.24 crore. This was largely driven by the reversal of an impairment provision of Rs 30.70 crore linked to a land dispute dating back to FY 2014-15, when municipal authorities had demanded an additional 20 per cent of land surrender following regulatory amendments. The demand was successfully contested, and competent authorities withdrew it during the September quarter. The gain was partly offset by expenses associated with the acquisition of Dalco-GFT and share issuance.

Arvind reported continued progress in its expansion initiatives during the period. Its greenfield garment manufacturing facility in Varanasi, Uttar Pradesh, has commenced operations, with the first phase targeted to generate annual revenue of about Rs 250 crore at full utilisation. Additionally, the company established a denim design and marketing hub in Amsterdam to improve engagement with European customers.

Looking ahead to the second half of FY27, the company expects the Advanced Materials business in India to sustain its growth momentum, while the textiles division is projected to deliver early double-digit revenue growth. At the same time, management noted that elevated raw material expenses and global demand uncertainties remain ongoing challenges for profit margins.

"Arvind Ltd's latest quarterly performance demonstrates the strategic value of business diversification. While traditional textile segments continue to face margin pressures from rising input and freight costs, the aggressive 80 percent growth in the Advanced Materials division has successfully cushioned the impact and driven overall profitability. For established industrial players, scaling high-growth adjacencies alongside core operations remains a critical path to sustained financial resilience in a volatile global environment." — Dr. Shishir Gupta, Founder & CEO, StartupLanes