Arvind Ltd, an Ahmedabad-based textile major, reported a 44 per cent year-on-year increase in consolidated net profit to Rs 148 crore in the second quarter of FY27, supported by strong growth in its Advanced Materials business, higher volumes and improved realisations across textile segments.
Profit was also boosted by a net exceptional gain during the quarter, following the reversal of an earlier impairment provision. The consolidated results included a net exceptional gain of Rs 28.24 crore in the quarter. This was largely attributable to the reversal of an impairment provision of Rs 30.70 crore relating to a land-related dispute, partly offset by expenses associated with the acquisition of Dalco-GFT and the issuance of shares.
The dispute dates back to financial year 2014-15, when municipal authorities had demanded that the group surrender an additional 20% of land following amendments to the General Development Control Regulations. The group contested the demand before the relevant authorities and had recognised an impairment provision equivalent to the value of the asset amid uncertainty over the outcome of the matter. During the September quarter, the competent authorities accepted the group’s claim and withdrew the demand, allowing Arvind to reverse the earlier provision in its consolidated financial results.
Revenue from operations rose 23 per cent to Rs 2,919 crore during the second quarter of FY 27. The company’s Advanced Materials segment reported 80 per cent growth in revenue to Rs 805 crore, while the textiles business grew 19 per cent to Rs 2,146 crore. Within textiles, improved realisations across denim, woven fabrics and garmenting supported revenue 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 that level.
However, profitability in textiles remained under pressure from higher raw material prices, including cotton, yarn and dyes and chemicals, as well as increased utility and freight costs. The company said partial transmission of these cost increases to customers had an adverse impact of about 75 basis points on textile margins on a normalised basis. Arvind also reported continued progress in its expansion plans. Its greenfield garment manufacturing facility in Varanasi, Uttar Pradesh, has commenced operations, with the first phase expected to generate annual revenue of about Rs 250 crore at full utilisation. The company also established a denim design and marketing hub in Amsterdam to strengthen its engagement with European customers.
The company said demand remained stable despite geopolitical uncertainties, higher logistics costs and cautious buying patterns in some global markets. Festive-season demand supported domestic textiles, while the Advanced Materials business 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 expected to deliver early double-digit revenue growth. However, elevated raw material costs and global demand uncertainties are likely to remain challenges for margins.
Published on October 28, 2026
