Arvind Ltd reports a near-flat consolidated net profit for Q1 FY27, with revenue and EBITDA climbing sharply, but faces challenges from acquisition-related expenses and rising costs, amid broad-based demand and strategic growth in advanced materials.
Arvind Ltd posted a near-flat rise in consolidated net profit attributable to equity holders in the first quarter of FY27, even as revenue and operating profit climbed sharply, underscoring how higher costs and acquisition-related charges diluted the benefit of stronger trading. The Gujarat-based textile-to-retail group said profit came in at ₹53.45 crore for the April-June period, while revenue from operations jumped 25% to ₹2,501 crore and EBITDA rose 39% to ₹258 crore, lifting the margin to 10.3% from 9.3% a year earlier.
According to the company, the operating performance was supported by broad-based demand across its businesses, with Advanced Materials standing out as the main growth engine. Arvind’s textile division generated ₹1,735 crore in revenue, up 13%, though it faced about ₹19 crore of additional input-cost pressure. Advanced Materials revenue surged 85% to ₹650 crore, with EBITDA more than doubling to ₹97 crore, while garmenting revenue rose to ₹497 crore on a 13% increase in volumes that topped 11 million pieces for the first time.
The benefit from stronger sales was offset by the costs of integrating Dalco-GFT, the US-based technical textiles company Arvind acquired in May 2026. The acquisition added ₹10.7 crore of depreciation, ₹10.6 crore of finance costs linked to the $110 million loan used for the deal and about ₹23 crore of exceptional costs after tax. Dalco-GFT contributed ₹157 crore of revenue and ₹24 crore of EBITDA during roughly 1.8 months of consolidation, while also broadening Arvind’s reach in the US market across automotive, geotextiles, industrial and furniture and furnishings applications.
Arvind said its denim fabric volumes rose 34% to 17.5 million metres, the strongest in 16 quarters, while woven fabric volumes increased 7% to 31.2 million metres. The company said its India operations in Advanced Materials grew 40% to ₹493 crore, helped by normalising defence procurement and easing tariff pressures in the US in the human protection business, along with demand from renewable energy and mobility in composites. Looking ahead, Arvind plans capital expenditure of ₹450 crore to ₹500 crore in FY27 and said the recent ₹500 crore qualified institutional placement, which it said was heavily oversubscribed, will mainly be used to cut debt and strengthen the balance sheet.
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