The textile division posted annual revenue of ₹6,174 crore and EBITDA of ₹626 crore, with a margin of 10 per cent, despite disruptions due to industrial action.
Arvind Ltd reported revenue of ₹8,329 crore (~$975.2 million) and EBITDA of ₹919 crore with an 11 per cent margin in FY25.
Strong Q4 growth was seen across textiles and garments, led by AMD and robust fabric volumes.
The company advanced sustainability with a 25-year renewable energy PPA and is exploring UK FTA gains.
Amid US tariffs, it focuses on volume growth and cost control, deferring FY26 guidance.
The apparel manufacturing division (AMD) recorded revenue of ₹1,544 crore and EBITDA of ₹231 crore with a 15 per cent margin. Profit before tax (PBT) stood at ₹494 crore, up 7 per cent YoY. Profit after tax (PAT) remained at ₹353 crore.
The company invested ₹483 crore in capital expenditure projects. For the full year, denim fabric achieved 51.6 million metres, growing 8 per cent with a healthy capacity utilisation of approximately 90 per cent. Woven fabric full-year volumes stood at 128 million metres. Garmenting division recorded 37.2 million pieces, reflecting a growth of 16 per cent.
In the fourth quarter of 2024-25, Arvind Ltd generated a consolidated revenue of ₹2,221 crore (~$260 million), up 7 per cent year-over-year (YoY) and an EBITDA of ₹275 crore (~$32.2 million), up 10 per cent, reflecting a margin of 12.4 per cent—the highest in the last 16 quarters, Arvind Ltd said in a press release.
AMD achieved its highest-ever revenue and EBITDA at ₹451 crore and ₹69 crore respectively, marking a YoY growth of 17 per cent and 13 per cent. The quarter’s performance was driven by successful operational transformation initiatives and the acquisition of new and marquee customers in the garmenting segment, which contributed to stronger volumes and improved margins, particularly in the second half (H2) of FY25.
The quarter reflected strong demand momentum across key segments. Denim fabric volumes reached 14.6 million metres, the highest in the past 11 quarters, marking a YoY growth of 14 per cent.
The woven fabric, operating at nearly full capacity, recorded a volume of 33.2 million metres in Q4, registering a 5 per cent growth. The garmenting division also delivered a robust performance, achieving 9.5 million pieces in Q4—the highest in 12 quarters.
Arvind Ltd has reaffirmed its long-term commitment to sustainability by signing a 25-year power purchase agreement (PPA) to source electricity from renewable energy. Under this agreement, Arvind, along with other participating members, will subscribe to up to 26 per cent equity to qualify as a Group Captive user. This strategic move is expected to raise the company’s share of renewable energy to around 60 per cent. With an attractive payback period of under two years, the investment is projected to enhance EBITDA margins by approximately 30–40 basis points by FY27.
The recently signed UK free trade agreement marks a significant positive development for the industry and presents a valuable opportunity for Arvind Ltd, particularly in a geography that currently contributes less than 2 per cent to its business, added the release.
Simultaneously, the newly imposed tariff measures by the US have had wide-ranging effects on the global economy, introducing both opportunities and uncertainties. In the short term, the company is experiencing increased demand for garments and fabrics, with encouraging signals from key US customers pointing towards higher business volumes.
However, margins may face pressure as part of the tariff burden is being absorbed in pricing. To mitigate this, Arvind is implementing proactive strategies focused on scaling volumes and optimising costs.
Given the fluid nature of the global business environment, Arvind stated that it is premature to issue formal guidance for FY26.
Fibre2Fashion News Desk (SG)
