Can Arvind Ltd Maintain Its Textile Growth and Tariff Resilience in FY26?
About Arvind Ltd
Arvind Ltd is India’s leading integrated textile and apparel manufacturer with diversified presence across denim, woven, knitwear, and advanced materials. The company continues to focus on sustainable textile innovation and global export diversification.
Q2 FY26 reflected robust demand in apparel exports despite global tariff pressures and a successful de-merger of the Advanced Materials Division (AMD).
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY |
|---|---|---|
| Revenue | ₹2,371 Cr | +8.4% |
| PAT | ₹107 Cr | +70% |
| EBITDA Margin | 11% | +40 bps |
| ROCE | 14.4% | Improved |
Revenue ₹2,371 Cr — driven by strong garment exports and improved capacity utilization.
PAT ₹107 Cr — boosted by margin recovery and cost savings initiatives.
EBITDA Margin 11% — resilient despite tariff headwinds; adjusted margin 12%.
ROCE 14.4% — healthy improvement reflecting better capital efficiency.
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Peer Comparison
| Company | Segment | EBITDA Margin |
|---|---|---|
| Arvind Ltd | Textiles & Apparel | 11% |
| Raymond | Apparel | 10% |
| Page Industries | Innerwear | 18% |
Arvind maintains strong export competitiveness and capacity growth ahead of FY27.
Strengths & Weaknesses
Strengths
|
Weaknesses
|
Efficient cost management offsets most tariff-related margin pressure.
Opportunities & Threats
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Arvind’s green initiatives and product innovation will help sustain long-term growth.
Valuation & Investment View
- Short-term: Supported by stable exports and new orders.
- Medium-term: Margin expansion expected from cost efficiency.
- Long-term: Focus on sustainability & AMD growth.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, highlights that Arvind’s dual growth engines in textiles and advanced materials make it a balanced export play. Explore more such insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Textile Stocks
- Will India’s textile exports gain from China+1 strategy?
- How is Arvind addressing tariff risks?
- Which Indian textile stocks focus on sustainability?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
