Arvind Limited posted a robust Q3 FY26 with revenue growth of 14% YoY at ₹2,373 Cr, driven by a record high of ₹496 Cr from its Advanced Materials business (up 32%) and a 23% increase in Garmenting. EBITDA also grew 15% to ₹286 Cr, with a slight increase in margins to 12.0%. The company offered positive segment-wise forecasts for FY26, despite the impact of tariffs. Net debt reduced marginally, and ROCE improved sharply.
The Financial Deep Dive:
Arvind Limited has announced strong financial performance in Q3 FY26, reflecting significant growth in the top line and margin expansion in key business segments. The company’s revenue in Q3 FY26 stood at ₹2,373 Cr, registering a sharp increase of 14% YoY from ₹2,089 Cr in Q3 FY25.
EBITDA registered a sharp 15% YoY increase to ₹286 Cr, up from ₹248 Cr in the same period last year, thereby leading to a slight expansion in EBITDA margins to 12.0% from 11.9% YoY. Not adjusting for the impact of tariffs of ₹25 Cr in the quarter, the EBITDA would have been ₹311 Cr. Profit After Tax (PAT) before exceptional items increased by 17% YoY to ₹125 Cr. An exceptional item of ₹23.5 Cr (net of tax) was recognized consequent to the implementation of the new Labour Code.
Segment Highlight:
The Advanced Materials (AMD) business was the highlight, registering its highest ever revenue of ₹496 Cr, up 32% YoY. This was aided by a 50 bps margin expansion on account of operating leverage.
The Garmenting segment registered a robust 23% revenue growth, surpassing the 10 million pieces sold mark for the second consecutive quarter. The Textile business registered a 9% revenue growth.
Financial Health & Efficiency:
The company’s cash accruals grew by 17% YoY to ₹198 Cr. The net debt position of the company improved and closed at ₹1,236 Cr, a slight decrease from ₹1,270 Cr as of September 2025.
Capital efficiency ratios improved considerably. The ROCE run rate increased sharply by around 335 bps to ~19%, with the reported ROCE at 16%.
Risks & Outlook:
The company’s management offered a positive outlook for FY26. The AMD business is expected to register 17% to 20% revenue growth, while the Textile business (Fabrics & Garmenting) is expected to register 10% to 12% growth.
However, the impact of tariffs is a challenge, which is expected to impact quarterly EBITDA by ₹20-25 Cr. Notwithstanding this, the company expects its full-year margin to remain stable after absorbing around ₹90 Cr of tariffs in FY26.
The company’s planned Capex for FY26 is expected to be in the range of ₹400-450 Cr, of which ₹348 Cr has already been incurred.
Arvind Limited has also made progress on its ESG initiatives, achieving an enhanced sustainability score and ranking 6th globally in the S&P DJSI ranking. Arvind Advanced Materials Limited (AAML) has received a credit rating of “AA” with a stable outlook.
