Arvind Ltd profit rises 25% to Rs 54.7 cr in Q1 underscoring steady demand

New Delhi: Leading textile manufacturer Arvind Ltd on Tuesday reported a 25.08 per cent increase in consolidated net profit at Rs 54.7 crore during the June quarter.

The company had posted a net profit of Rs 43.73 crore in the year-ago period, according to a regulatory filing from Arvind Ltd.

Its revenue from operations was up 9.6 per cent at Rs 2,006.32 crore during the quarter under review. It was at Rs 1,830.60 crore in the corresponding period of the previous fiscal year.

"The result reflected stable performance in both volumes and revenue, underscoring steady demand and improving operational efficiency across the segments, despite the backdrop of global uncertainty and shifting geopolitical dynamics," said Arvind in its earning statement.

Moreover, Q1 FY26 reflected the impact of shifting sourcing strategies due to new US tariffs and industry-wide cost pressures.

"Despite these headwinds, the company recorded healthy volume growth in its core fabric and garmenting businesses, and remains on track to deliver stronger revenue and margin performance in the second half of the year, in line with its traditional 40:60 H1-H2 split," it said.

Its revenue from textiles was at Rs 1,535.87 crore, up 13.76 per cent in the June quarter.

"In Q1 FY26, Arvind’s fabric business, including denim and woven, delivered high single-digit volume growth, supported by improved realisations, resulting in double-digit revenue expansion," it said.

While margins were temporarily impacted by higher input costs, discounts, and air freight due to tariff-led disruptions, strategic focus on vertical integration and operational efficiency has laid a solid foundation for improved performance in H2.

Similarly, revenue from advanced materials was at Rs 351.24 crore, up 6.82 per cent.

The advanced materials division faced "order deferment in the business segment aligned to defence sector and tariff-driven procurement pause in composite projects. In addition to lower growth, the division also witnessed margin pressure in Q1 FY26 due to tariff-related cost absorption".

However, with a strong order pipeline and cost optimisation measures underway, the division is expected to recover during the second half of the current fiscal year.

Arvind's total expenses in the June quarter were at Rs 1,939.25 crore, up 8.36 per cent.

On the guidance for Q2 and FY26, Arvind said both the Textiles and Advanced Materials Division are witnessing robust order inflows, signalling increased global interest in India as a sourcing destination.

"Business performance is projected to improve significantly in H2, with both garment and AMD segments poised for double-digit growth and margin expansion," it said.

On the capex, Arvind said a "capital investment of Rs 450-475 crore is planned for FY26, with all ongoing projects progressing as scheduled to support capacity expansion and long-term growth."

Shares of Arvind Ltd on Tuesday settled at Rs 332 on the BSE, down 1.10 per cent from the previous close.