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Input cost inflation squeezing H1 margins
View Risks →Arvind Limited — Q4 FY26
Arvind delivered a strong Q4 FY26 with consolidated revenue of ₹2,553 crore (+15% YoY) and EBITDA of ₹327 crore (+19% YoY), driven by robust volume growth across segments: denim volumes up 19%, woven fabrics up 5%, and garmenting crossing 10 million pieces...
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2-Minute Summary
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Arvind delivered a strong Q4 FY26 with consolidated revenue of ₹2,553 crore (+15% YoY) and EBITDA of ₹327 crore (+19% YoY), driven by robust volume growth across segments: denim volumes up 19%, woven fabrics up 5%, and garmenting crossing 10 million pieces for the third consecutive quarter. Advanced Materials (AMD) posted record revenue of ₹1,839 crore (+21% YoY) with EBITDA margin of 15.1%, supported by favorable product mix and operating leverage. Full-year PAT grew 21% to ₹444 crore. Management guided for double-digit revenue growth in FY27, with high-teens growth in AMD and mid-teens in garmenting, though input cost inflation (cotton, energy, chemicals) may pressure EBITDA margins by 100-150 bps in H1. The acquisition of US-based Dalco GFT is expected to be margin-accretive. Key risk: sustained geopolitical tensions could dampen discretionary demand in H2.
अरविंद कंपनी ने चौथी तिमाही में अच्छा प्रदर्शन किया। कुल कमाई ₹2,553 करोड़ रही, जो पिछले साल से 15% ज़्यादा है। मुनाफा (EBITDA) ₹327 करोड़ (+19%) हुआ। डेनिम कपड़े की बिक्री 19%, वोवन फैब्रिक 5% बढ़ी। गारमेंटिंग ने लगातार तीसरी बार 1 करोड़ से ज़्यादा टुकड़े बेचे। एडवांस्ड मैटेरियल्स ने ₹1,839 करोड़ की रिकॉर्ड कमाई (+21%) की। पूरे साल का शुद्ध मुनाफा 21% बढ़कर ₹444 करोड़ हुआ। कंपनी को अगले साल भी अच्छी बढ़त की उम्मीद है, लेकिन कच्चे माल (कपास, बिजली, रसायन) के दाम बढ़ने से पहली छमाही में मुनाफे पर 1-1.5% का दबाव पड़ सकता है। अमेरिकी कंपनी Dalco GFT खरीदने से फायदा होगा। चिंता: दुनिया में तनाव से लोगों की खरीदारी घट सकती है।
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Read Transcript →Quarter Snapshot
Denim Volume
17M meters
+19% YoY
Denim volume grew 19% to 17 million meters in Q4; full year volume reached 60 million meters, up 15%.
Garmenting Volume
10M+ pieces
+12% YoY (FY)
Garmenting crossed 10 million pieces for the third consecutive quarter; full year volume 42 million pieces, up 12%.
AMD Revenue
₹1,839 crore
+21% YoY
Advanced Materials division reported record revenue of ₹1,839 crore for FY26, with EBITDA margin of 15.1%.
Net Debt Reduction
₹1,172 crore
-₹112 crore YoY
Net debt reduced by ₹112 crore to ₹1,172 crore, supported by strong free cash generation.
What Changed vs Last Quarter
NEW
Double-digit revenue growth in FY27
Management expects to maintain double-digit revenue growth, with high-teens growth in Advanced Materials and mid-teens growth in garmenting.
NEW
EBITDA margin pressure of 100-150 bps in H1 FY27
Input cost inflation (cotton, energy, chemicals) may reduce EBITDA margins by 1-1.5% in the first half, with recovery expected in H2 subject to easing geopolitical tensions.
UPDATED
Capex of ₹450-500 crore in FY27 (ex-Dalco)
Planned capex of ₹450-500 crore for FY27, funded through internal accruals, plus additional ~₹50 crore for Dalco.
UPDATED
Garmenting capacity to reach 60 million pieces by FY27-end
Garmenting capacity expected to reach 60 million pieces by end of FY27, with shipping volumes above 50 million pieces.
DROPPED
Q4 FY26 performance expected similar to Q3
Management expects the trajectory to continue with Q4 performance similar to Q3.
DROPPED
AMD growth aspiration of 18-20% CAGR
Advanced Materials division targets 18-20% CAGR growth with 14-15% EBITDA margins over the long term.
NEW RISK
Input cost inflation squeezing H1 margins
Sharp rise in cotton, yarn, energy, and chemical costs may compress EBITDA margins by 100-150 bps in H1 FY27, with recovery uncertain.
NEW RISK
Geopolitical tensions could weaken H2 demand
If oil stays above $100/barrel and Middle East conflict persists, discretionary consumption may decline, impacting H2 demand.
NEW RISK
Debt increase from Dalco acquisition
Net debt nearly doubled due to the Dalco acquisition; management plans to reduce debt over 1-2 years but timeline is uncertain.
NEW RISK
Wage inflation and labor unrest
Recent labor unrest in Noida and UP government's higher wage targets could increase costs; management says compliance is built into model.
RISK GONE
Tariff-related discount impact on margins
Management called out a ~₹25 crore quarterly impact from tariff-related discounts, which may persist until a US trade deal is reached.
RISK GONE
Bangladesh geopolitical instability
Disruption in Bangladesh could negatively impact Arvind's fabric sales to that market, though dependency has been reduced.
RISK GONE
AMD quarterly growth variability
AMD's growth trajectory will see quarterly variability due to industry cycles and competitive dynamics, making consistent 20% growth unlikely each quarter.
RISK GONE
Execution risk in garmenting expansion
Management noted that the limitation for garmenting growth is execution capability rather than demand, implying potential delays.
Fast read
Guidance and risk preview
Management expects to maintain double-digit revenue growth, with high-teens growth in Advanced Materials and mid-teens growth in garmenting.
Sharp rise in cotton, yarn, energy, and chemical costs may compress EBITDA margins by 100-150 bps in H1 FY27, with recovery uncertain.
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