Arvind Delivers Solid Q3 Performance
Arvind Ltd., one of India’s leading textile and apparel companies, reported resilient performance for the third quarter ended December 31, 2025, driven by volume growth, improved execution and a strong showing in its Advanced Materials Division (AMD), even as global trade volatility and tariff pressures continued.
The company posted consolidated revenue of Rs 2,373 crore, up 14% year-on-year, while EBITDA rose 15% to Rs 286 crore, with margins crossing the 12% mark. Profit after tax before exceptional items stood at Rs 125 crore, a 17% increase over the same period last year.
A key highlight of the quarter was the record performance of the AMD business, where revenue grew 32% to Rs 496 crore and EBITDA margin expanded to 15.5%, supported by operational efficiencies, favourable product mix and the resumption of defence-related orders.
The garmenting division continued its growth momentum, recording a second consecutive quarter of over 10 million pieces in volumes and reporting 23% revenue growth. In core textile segments, denim fabric volumes increased 16% to 13.9 million metres, while woven fabrics grew 5% to 36.7 million metres, aided by higher verticalization and deeper engagement with key customers.
The textile division reported revenue of Rs 1,717 crore, up 9%, with EBITDA of Rs 193 crore at an 11.2% margin. Overall textile volumes benefited from product diversification and higher wallet share with marquee clients, even as selective tariff absorption impacted margins.
Arvind noted that tariff-related discounts reduced EBITDA by about Rs 25 crore in Q3 and Rs 63 crore in the first nine months of FY26. Excluding the tariff impact, margins would have exceeded 13%, in line with the company’s medium-term guidance.
During the first nine months of FY26, the company invested about Rs 348 crore in growth capex while maintaining net debt at Rs 1,236 crore, broadly in line with March 2025 levels. Return on capital employed (ROCE) improved to around 16% on a run-rate basis.
On the sustainability front, Arvind’s score in the S&P Dow Jones Sustainability Index (DJSI) improved to 73, significantly above the global textile industry average, with a global ranking of sixth among 158 peers. In addition, Arvind Advanced Materials Ltd. (AAML) received an “AA” (Stable) rating from India Ratings.
The company expects the market environment to remain uncertain due to geopolitical and trade factors, although domestic consumption is likely to support demand recovery. Arvind indicated a healthy order book for Q4 and expects FY26 revenue growth of 10–12% in textiles and 17–20% in AMD, with full-year EBITDA margins remaining broadly stable.
Tariff impact is projected at Rs 20–25 crore in Q4 and around Rs 90 crore for FY26, while full-year growth capex is expected in the range of Rs 400–450 crore.
Despite a challenging global landscape, Arvind said its integrated supply chain and diversified portfolio position it to respond effectively to shifting trade dynamics while sustaining long-term growth.
