Arvind Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 2,918.62 Cr (+23.09% YoY) and PAT growth of +42.03% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 28, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 2,918.62 Cr (+23.09% YoY) |
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| PAT (Q2) | Rs. 151.60 Cr (+42.03% YoY) |
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| EBITDA margin | 11.35% (+30 bps YoY) |
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| EPS (Q2) | Rs. 5.55 (+40.51% YoY) |
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| Market cap | Rs. 13,460.58 Cr |
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| CMP | Rs. 494.80 |
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Quarter Snapshot
Arvind delivered record quarterly revenue of Rs.2,918.62 Cr (+23.09% YoY) and EBITDA of Rs.331.40 Cr, with AMB (+80.49%) and the newly acquired Dalco-GFT (Rs.256 Cr at 16.0% margin) driving growth; all management targets tracked as on-track or met. However, growth is substantially acquisition-led, normalized PAT grew only 15.69% vs 23% revenue growth on finance costs +71.51%, and FCF was negative at −Rs.163.24 Cr on inventory build. Deleveraging has begun post-QIP with an AA rating upgrade, but leverage and the Rs.416 Cr Dalco option liability warrant attention.
Key Investment Insights
Key Positives
- Record quarterly revenue of Rs.2,918.62 Cr (+23.09% YoY, +16.70% QoQ) and record EBITDA of Rs.331.40 Cr (+27% YoY)
- Ex-Dalco-GFT and US HoldCos, revenue grew 12% and EBITDA 11% YoY, showing organic momentum
- AMB revenue grew 80.49% YoY with EBITDA up 98.33%; AMB India grew 23.32% at 14.2% margin, ahead of the ~18% growth guidance
- Dalco-GFT delivered Rs.256 Cr revenue at 16.0% EBITDA margin in its first full quarter, meeting the 15-16% guidance band
- Denim volumes grew 19% YoY to 18.1 Mn m; textile EBITDA margin recovered from 8.0% in Q1 to 9.5% in Q2
- Net debt reduced Rs.95 Cr QoQ to Rs.2,063 Cr post Rs.500 Cr QIP; credit rating upgraded to AA/Stable (CARE)
- CFO/PAT at 1.05x indicates accrual quality; cash PAT grew 29% YoY to Rs.230 Cr
- Varanasi Phase 1 garmenting commissioned (~Rs.250 Cr annual revenue potential) and 4th needle-felt line live (Rs.70 Cr annual potential)
Risk Factors
- Finance costs rose 71.51% YoY and D&A 48.80% on acquisition debt, with normalized PAT growth of 15.69% lagging 23% revenue growth
- Textile EBITDA margin fell to 9.5% from 10.0% YoY on ~75bps raw-material, utility and freight inflation impact with only partial price transmission
- US HoldCos were PBT-negative at −Rs.18 Cr with zero EBITDA and Rs.18 Cr depreciation
- FCF was negative at −Rs.163.24 Cr in H1 with CFO/EBITDA at 0.37x due to inventory build of Rs.317.41 Cr and receivables increase of Rs.102.04 Cr
- Rs.416.92 Cr option liability for the balance Dalco stake and ~Rs.900 Cr of acquisition goodwill/intangibles now sit on the balance sheet
- ETR of 17.52% vs 28.19% YoY flattered reported PAT via a Rs.14.61 Cr deferred tax credit