Ahmedabad-based textile conglomerate Arvind Limited has announced robust financial results for the third quarter of the fiscal year 2026, demonstrating resilience in a challenging global trade environment. The company reported a significant 17% year-on-year increase in its profit after tax (PAT) before exceptional items, reaching Rs 125 crore. This growth comes despite facing headwinds from global trade dynamics and tariff-related discounts that put pressure on margins.
Strong Revenue and EBITDA Performance
Consolidated revenue for the quarter saw a healthy 14% rise, amounting to Rs 2,373 crore. This growth was primarily driven by strong volume expansion across the textiles and garmenting segments, coupled with a notable rebound in the Advanced Materials Division (AMD). The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 15% to an all-time high of Rs 286 crore, pushing operating margins beyond the 12% threshold.
Nine-Month Financial Highlights
For the nine-month period ending December 31, 2025, Arvind Limited's revenue stood at Rs 6,750 crore, reflecting an 11% increase compared to the previous year. The profit after tax for this period climbed impressively by 34%, reaching Rs 286 crore, underscoring the company's sustained profitability and operational efficiency.
Segment-Wise Volume and Revenue Growth
In a detailed statement, Arvind Limited highlighted specific achievements across its business divisions. Denim volumes rose by 16% to 13.9 million metres, supported by higher vertical integration efforts. Woven fabric volumes increased by 5% to 36.7 million metres. The garmenting division marked its second consecutive quarter with over 10 million pieces produced, resulting in an 11% volume growth and a substantial 23% jump in revenue to Rs 493 crore.
Impact of Tariff Discounts and Labour Code Changes
The company noted that tariff-related discounts had a notable impact on its financials, reducing EBITDA by Rs 25 crore in the third quarter and Rs 63 crore over the nine-month period. Excluding these discounts, margins would have exceeded 13%, aligning with the company's medium-term guidance. Additionally, a one-time impact of Rs 23.5 crore (net of tax) was recorded due to the implementation of the new labour code, affecting the overall profit figures.
Capital Expenditure and Debt Management
During the first nine months of FY26, Arvind Limited incurred growth capital expenditure of approximately Rs 348 crore, indicating ongoing investments in expansion and modernization. Despite this, the company maintained stable net debt levels at Rs 1,236 crore, which is similar to the figures reported in March 2025, showcasing prudent financial management.
Future Outlook and Market Conditions
Looking ahead, Arvind Limited expressed caution regarding demand conditions, citing uncertainties stemming from geopolitical and trade factors. However, the company remains optimistic, with domestic consumption and a healthy order book expected to provide support for the fourth quarter. This balanced outlook reflects the textile major's strategic focus on navigating global challenges while leveraging domestic strengths.
