AARVEE Denims Posts Q1 Profit, Turns Debt-Free Under New Leadership

AARVEE Denims and Exports Limited has announced its unaudited standalone financial results for the quarter ended June 30, 2025, signaling a turning point in the company’s journey. Approved by the Board of Directors on August 14, 2025, the results come on the back of a change in management, a strengthened financial position, and the successful elimination of bank debt.

For the first quarter of FY26, the company reported total revenue of Rs627.29 lakh, lower than the Rs4,544.15 lakh recorded in the previous quarter and Rs5,862.62 lakh in the same quarter last year. Despite this decline in revenue during the transition period, AARVEE posted a profit before tax of Rs328.60 lakh, compared to Rs1,612.51 lakh in Q4 FY25 and Rs2,772.87 lakh in Q1 FY25. Net profit for the quarter surged to Rs2,548.08 lakh, supported by a favorable tax adjustment, against a loss of Rs887.09 lakh in the preceding quarter and profit of Rs2,258.43 lakh a year earlier. Earnings per share also reflected the turnaround, standing at Rs9.89 compared to a loss of Rs3.78 in Q4 FY25 and Rs9.63 in Q1 FY25.

A key milestone achieved during the quarter was the company’s complete repayment of bank borrowings as of June 3, 2025, rendering AARVEE Denims entirely debt-free. This strengthened balance sheet provides greater operational flexibility and positions the company more competitively for the future.

The quarter also marked the formal entry of new management. Following a share purchase agreement executed in September 2024, control of the company was transferred on July 5, 2025, to Jaimin Kailash Gupta, along with PACs Tarachand Gangasahay Agrawal and Qmin Industries Limited, who collectively acquired around 65.63% of the company’s shares. Gupta now serves as Chairman and Managing Director, with the new leadership team charting a strategic roadmap for growth.

Despite the sale of certain assets, the Narol unit, with facilities for yarn warping, sizing, dyeing, weaving, and finishing denim and non-denim fabrics, remains with the company and will be the cornerstone of future operations. The management has reaffirmed its commitment to continuing as a going concern, while also capitalizing on future taxable profits, including a recognized MAT credit of around Rs 6 crore.

Commenting on the results, Gupta said, “Following our restructuring and the induction of new leadership in July 2025, we are focused on cost optimization, digital supply chain upgrades, and strategic sourcing partnerships. With a debt-free balance sheet, a streamlined manufacturing footprint at Narol, and renewed capital commitment, we are entering a decisive new phase. This marks the beginning of a long-term turnaround, where we aim to strengthen competitiveness, seize market opportunities, and deliver sustained value creation.”

With its financial foundation strengthened and new leadership in place, AARVEE Denims aims to reposition itself as a profitable and value-driven enterprise, signaling the start of a new chapter in its legacy.