Arvind LimitedQ2 FY27 Results & Financial Update
Arvind Limited: Q2 FY27 consolidated results and company financials – revenue ₹5,419.58 Cr, PAT ₹209.37 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Arvind Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Arvind Limited delivered a consolidated quarterly revenue of ₹2,919 crores for Q2 FY27, representing a 23% increase compared to ₹2,371 crores in Q2 FY26. Consolidated EBITDA rose 27% year-on-year to ₹331 crores, with EBITDA margins improving by 40 basis points to 11.4%.
The company's profitability expansion was driven by robust volume growth across the Advanced Materials Business (AMB) and steady execution in core textile segments, though earnings were partially constrained by rising input costs.
Excluding the contribution of Dalco-GFT and US holding companies, standalone consolidated revenue stood at ₹2,663 crores (up 12% year-on-year) and EBITDA stood at ₹290 crores (up 11% year-on-year), highlighting the inorganic boost from recent acquisitions.
Profit after tax before exceptional items reached ₹123 crores for the quarter, marking a 16% growth over the corresponding period of the previous year.
Operating margins in the textile division faced headwinds from escalating raw material prices—specifically cotton, yarn, and dyes and chemicals—alongside higher freight and utility expenses, creating a net negative impact of approximately 75 basis points on textile margins.
During the quarter, Arvind established a denim design and marketing hub in Amsterdam to strengthen its footprint and customer engagement in Europe, following its earlier hub in London.
The company also commissioned Phase 1 of its greenfield garment manufacturing facility in Varanasi, Uttar Pradesh, which was inaugurated by Prime Minister Narendra Modi on October 25, 2026.
01 · Business model
What does Arvind do?
Arvind Limited operates as a diversified conglomerate spanning traditional textiles, technical textiles, branded apparel, and environmental solutions, functioning as an integrated solutions provider with global fiber-to-fashion capabilities.
The company's core manufacturing operations cover denim and woven fabrics, garmenting, advanced materials including human protection gear, industrial non-wovens, and composites, alongside automotive and geo-textiles through its Dalco-GFT subsidiary.
Revenue engines rely on a combination of domestic festive demand, export shipments to key Western and European markets, and institutional contracts across industrial and defense sectors, supported by a vertically integrated value chain.
The economic model is increasingly anchored by higher-margin technical textiles and advanced material businesses, which help balance cyclicality and cost pressures in standard fabric lines.
02 · Historical context
What shaped the business before this quarter
Arvind integrated Dalco-GFT into its consolidated operations starting May 6, 2026, expanding its footprint in automotive, geo-textiles, and industrial composites.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹5,419.58 Cr | ₹2,500.96 Cr |
| Total income | ₹5,459.28 Cr | ₹2,518.80 Cr |
| Profit before tax | ₹272.69 Cr | ₹88.88 Cr |
| Profit after tax | ₹209.37 Cr | ₹57.77 Cr |
| EPS | ₹7.59 | ₹2.04 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
AMB revenue surged 81% year-on-year to ₹805 crores, bolstered by the integration of Dalco-GFT (contributing ₹256 crores) and robust 23% growth in the domestic AMB business.
Denim fabric volumes crossed 18 million metres, reflecting a 19% year-on-year increase, while woven fabric volumes remained stable at 34 million metres.
Garmenting volumes surpassed 11 million pieces for the second consecutive quarter, achieving a 3% year-on-year volume growth and contributing ₹577 crores to revenue.
Textile division revenues reached ₹1,999 crores (up 11% year-on-year), supported by improved realisations and partial pass-through of increased input costs.
What drove margins
Significant inflation in raw materials including cotton, yarn, dyes, chemicals, utilities, and freight created margin compression, impacting textile EBITDA margins by approximately 75 basis points.
Advanced Materials maintained strong profitability, with AMB EBITDA growing 97% to ₹119 crores and segment margins expanding to 14.8%, supported by a favorable product mix and operating leverage.
Dalco-GFT delivered an EBITDA margin of 16.0%, contributing ₹41 crores in EBITDA during the quarter and supporting overall consolidated margin resilience.
05 · Demand, customers & order book
Where demand is coming from
The Protective Gear (HP) segment within AMB witnessed strong demand traction from Tier-1 customers, defense, and paramilitary forces.
Industrial applications maintained strong capacity utilization, while mobility segments within composites benefited from new customer additions.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Reported revenue of ₹1,999 crores and EBITDA of ₹190 crores, representing an EBITDA margin of 9.5% compared to 10.0% in Q2 FY26.
AMB total revenue reached ₹805 crores with an EBITDA of ₹119 crores (14.8% margin), combining domestic AMB revenue of ₹550 crores and Dalco-GFT revenue of ₹256 crores.
Within Dalco-GFT, automotive applications accounted for 69% of revenue (₹176 crores), geo-textiles for 14% (₹35 crores), and industrial and others for 18% (₹45 crores).
Geography and market mix
The domestic textile business benefited from stronger festive-season order inflows and a favorable trade position as the quarter progressed.
The establishment of the Amsterdam design and marketing hub aims to deepen engagement with European fashion brands and retailers.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Phase 1 of the Varanasi garment manufacturing facility was commissioned, featuring 10 manufacturing lines across 65,000 sq ft on a 5.5-acre land parcel, with an estimated annual revenue potential of ₹250 crores at full utilization.
AMB India's industrial business commissioned the 4th line of its Needle Felt Non-Woven platform, adding an annual revenue potential of approximately ₹70 crores.
New chop strand mat (CSM) lines and carbon pultrusion facilities went live during the quarter.
Projects, capex and execution
Management noted that total capital expenditure for the full year FY27 is expected to cross ₹500 crores, with ₹372 crores already spent during the first half of the year.
08 · Strategy & new businesses
How the company is trying to change its growth mix
New product development for tactical gear outside of standard protective garments progressed to advanced stages of trials within the Human Protection division.
09 · Reported developments
What changed operationally
Achieved all-time high quarterly revenue of ₹2,919 crores and EBITDA of ₹331 crores, supported by momentum in advanced materials.
Credit rating upgraded to 'AA' with a stable outlook by Care Ratings.
10 · Pressure points & risks
What is not going smoothly
Escalating raw material, utility, and freight costs continued to exert pressure on operating margins, particularly within traditional textile segments.
Delay in commissioning certain expansion projects within industrial sectors constrained segment growth rates during the period.
11 · Items worth noticing
The line items that can distort a quick read
Q2 FY27 financials include ₹16 crores of interest on loans taken for the Dalco-GFT acquisition, a ₹4 crores mark-to-market loss on dollar loans, ₹18 crores of additional depreciation on intangibles at US holding companies, and ₹11 crores of depreciation on Dalco-GFT financials.
12 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Capital allocation & funding
Closing net debt stood at ₹2,063 crores as of September 30, 2026, compared to ₹2,158 crores as of June 30, 2026. Total borrowings increased to ₹2,651 crores from ₹1,441 crores as of March 31, 2026, primarily driven by approximately ₹1,000 crores in loans taken to fund the Dalco-GFT acquisition.
Other liabilities include an option purchase liability of ₹416 crores relating to Dalco, with a corresponding impact reflected in reserves and surplus.
13 · Management guidance & targets
What management is targeting from here
Management expects the AMB India business to achieve approximately 18% revenue and EBITDA growth in Q3 FY27, maintaining stable margins of 14% to 15%.
Dalco integration is proceeding rapidly with preponed capex programs and expected margin stability between 15% and 16%.
The textile segment is projected to achieve early double-digit revenue growth in Q3 FY27, while margins are expected to remain near current levels due to elevated input cost scenarios.
14 · Beyond the numbers
What changed beyond the numbers
Reported update
Varanasi Facility Inauguration
Prime Minister Narendra Modi inaugurated Phase 1 of the Varanasi garmenting project on October 25, 2026, designed to forward-integrate knitted fabrics and support European and UK markets.
15 · Previous-quarter changes
What changed since the previous quarter
Consolidated revenue expanded sequentially from ₹2,500.96 crores in Q1 FY27 to ₹5,419.58 crores in total reported income streams (or ₹2,919 crores operating revenue in investor disclosures).
EBITDA margin improved by approximately 110 basis points on a quarter-on-quarter basis to reach 11.4%.
16 · Key Q&A
The quarter, answered directly
What does Arvind do?
Arvind Limited operates as a diversified conglomerate spanning traditional textiles, technical textiles, branded apparel, and environmental solutions, functioning as an integrated solutions provider with global fiber-to-fashion capabilities.
What is the clearest takeaway from Q2 FY27?
Arvind Limited delivered a consolidated quarterly revenue of ₹2,919 crores for Q2 FY27, representing a 23% increase compared to ₹2,371 crores in Q2 FY26. Consolidated EBITDA rose 27% year-on-year to ₹331 crores, with EBITDA margins improving by 40 basis points to 11.4%.
What drove revenue or demand?
AMB revenue surged 81% year-on-year to ₹805 crores, bolstered by the integration of Dalco-GFT (contributing ₹256 crores) and robust 23% growth in the domestic AMB business.
What mattered most for margins or profitability?
Significant inflation in raw materials including cotton, yarn, dyes, chemicals, utilities, and freight created margin compression, impacting textile EBITDA margins by approximately 75 basis points.
What changed operationally beyond the headline numbers?
Phase 1 of the Varanasi garment manufacturing facility was commissioned, featuring 10 manufacturing lines across 65,000 sq ft on a 5.5-acre land parcel, with an estimated annual revenue potential of ₹250 crores at full utilization.
What is management guiding or targeting from here?
Management expects the AMB India business to achieve approximately 18% revenue and EBITDA growth in Q3 FY27, maintaining stable margins of 14% to 15%.
17 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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18 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Full-Year Capex Execution: Tracking whether full-year capital expenditure exceeds the projected ₹500 crore threshold by March 31, 2027.
- 02
Varanasi Facility Ramp-Up: Monitoring production ramp-up and capacity utilization at the newly commissioned Varanasi garmenting facility to evaluate progress toward its ₹250 crore annual revenue potential.
- 03
Cost Mitigation Efficacy: Observing the effectiveness of cost pass-throughs and mitigation measures in offsetting raw material inflation across textile and Dalco-GFT segments.
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