ARVIND: Revenue and EBITDA climbed, while input costs pressured textile margins

What happened

Arvind's Q2 revenue rose 23% and EBITDA rose 27%, with margin reaching 11.4%. AMB growth and Dalco-GFT integration supported results. Higher input costs pressured textile margins, while FY27 capital spending is expected to exceed ₹500 Cr.

Confirmed

Global impact / market context

Faster revenue and EBITDA growth shows Arvind is selling more and keeping more operating profit despite higher input costs, which reduce profit per sale. The planned spending above ₹500 Cr on long-term assets will use cash and shape future capacity.

Analyst inference

Textile companies face pressure when raw material input costs rise, because those costs can shrink profit per sale even as revenue grows. For Arvind, the mix is improving sales and earnings alongside margin pressure and a large planned capital spending program.

Analyst inference

What to watch

1. Watch whether input costs keep pressuring textile margins, since Q2 margin was 11.4%; higher input costs directly reduce profit per sale and can offset gains from revenue and EBITDA growth. Confirmed
2. Watch whether FY27 capital spending above ₹500 Cr is funded from internal cash or borrowed money, because borrowing adds interest costs and uses future cash available for other needs. Proposed
3. Watch AMB growth and Dalco-GFT integration for added revenue and cost savings; weak integration or slower AMB growth could limit the earnings benefit that supported Q2 results. Analyst inference

Evidence

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