Ahmedabad-based textile major Arvind Ltd reported a 44% year-on-year increase in consolidated net profit to Rs 148 crore (US $ 15.55 million) in the second quarter of FY27.
According to the company, the performance was supported by growth in its Advanced Materials business, higher volumes and improved realisations across textile segments.
Revenue from operations rose 23% to Rs 2,919 crore (US $ 306.68 million) during the quarter. The company also reported a net exceptional gain of Rs 28.24 crore (US $ 2.97 million), primarily due to the reversal of an earlier impairment provision of Rs 30.70 crore (US $ 3.23 million) related to a land dispute.
The Advanced Materials business recorded 80% revenue growth to Rs 805 crore (US $ 84.58 million), while the textiles business grew 19% to Rs 2,146 crore (US $ 225.47 million).
Within textiles, improved realisations across denim, woven fabrics and garmenting supported growth. Denim benefited from higher volumes and increased vertical integration, while garmenting gained from a favourable product mix.
Garmenting volumes stood at 11 million pieces for the quarter, marking the second consecutive quarter at this level.
However, textile profitability remained under pressure from higher cotton, yarn, dyes and chemicals prices, along with increased utility and freight costs.
According to the company, the partial pass-through of these cost increases to customers adversely affected textile margins by around 75 basis points on a normalised basis.
Arvind continued to expand its manufacturing and international operations during the quarter. Its greenfield garment manufacturing facility in Varanasi, Uttar Pradesh, commenced operations.
The first phase is expected to generate annual revenue of around Rs 250 crore (US$ 26.27 million) at full utilisation. The company also established a denim design and marketing hub in Amsterdam to strengthen engagement with European customers.
The company noted that demand remained stable despite geopolitical uncertainties, higher logistics costs and cautious buying in some global markets. Festive-season demand supported domestic textiles, while Advanced Materials continued to benefit from demand linked to industrial capital expenditure, infrastructure, mobility and specialised applications.
For the second half of FY27, Arvind expects its Advanced Materials business in India to sustain growth, while its textiles division is projected to deliver early double-digit revenue growth. However, elevated raw material costs and uncertainty in global demand are expected to remain challenges for margins.
