Growth in Advanced Materials and the integration of Dalco-GFT drive quarterly earnings, while higher input costs weigh on textile margins
Fashion major Arvind reported a 42 per cent year-on-year increase in consolidated profit to Rs 151.60 crore in the second quarter of FY27, compared with Rs 106.74 crore in the corresponding period last year. Growth in its Advanced Materials business, higher volumes and the integration of Dalco-GFT supported the performance.
Revenue from operations rose 23.1 per cent to Rs 2,918.62 crore from Rs 2,371.14 crore a year earlier. Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 27 per cent to Rs 331 crore from Rs 262 crore, while the Ebitda margin expanded to 11.4 per cent from 11 per cent in the year-ago quarter.
Total expenses increased 24.6 per cent year on year to Rs 2,786.81 crore from Rs 2,237.22 crore. The Ahmedabad-based textile manufacturer reported its highest-ever quarterly revenue and Ebitda, supported by growth in Advanced Materials, higher volumes and the integration of Dalco-GFT.
The company’s consolidated results also included a net exceptional gain of Rs 28.24 crore during the quarter. This primarily reflected the reversal of an earlier impairment provision of Rs 30.70 crore linked to a land dispute, partly offset by expenses associated with the acquisition of Dalco-GFT and the issuance of shares.
The dispute dates back to FY15, when municipal authorities demanded that the group surrender an additional 20 per cent of land following amendments to the General Development Control Regulations. Arvind challenged the demand before the relevant authorities and had recognised an impairment provision equivalent to the asset’s value amid uncertainty over the outcome. During the September quarter, the competent authorities accepted the group’s claim and withdrew the demand, allowing the company to reverse the earlier provision in its consolidated financial results.
Arvind Q2 Segment-Wise Performance
The textiles division reported revenue of Rs 2,145.86 crore, while its Ebitda stood at Rs 190 crore. The segment’s Ebitda margin declined to 9.5 per cent from 10 per cent a year earlier, reflecting higher raw material costs and the partial transmission of these increases to customers.
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 during the quarter, marking the second consecutive quarter at that level.
Higher prices of cotton, yarn, dyes and chemicals, along with increased utility and freight costs, continued to weigh on textile profitability. The company indicated that the partial pass-through of these cost increases to customers had an adverse impact of around 75 basis points on textile margins on a normalised basis.
The Advanced Materials segment recorded revenue of Rs 805.48 crore, up 80.8 per cent from Rs 445.63 crore in the corresponding quarter last year. Segment Ebitda rose to Rs 119 crore from Rs 60 crore, while its margin improved to 14.8 per cent from 13.6 per cent.
The latest quarter’s figures include contributions from Dalco-GFT, acquired in May 2026, making comparisons with the year-ago period less direct. The Others segment reported revenue of Rs 191.31 crore, compared with Rs 184.74 crore a year earlier.
Arvind Q2 Sequential Performance
On a quarter-on-quarter basis, consolidated profit increased 162.4 per cent from Rs 57.77 crore in Q1 FY27 to Rs 151.60 crore in Q2 FY27. Revenue from operations rose 16.7 per cent from Rs 2,500.96 crore to Rs 2,918.62 crore.
The consolidated Ebitda margin improved by around 110 basis points sequentially to 11.4 per cent, according to the company’s investor presentation. Total expenses increased 15.7 per cent quarter on quarter to Rs 2,786.81 crore from Rs 2,408.21 crore.
Textiles revenue rose to Rs 2,145.86 crore from Rs 1,862.36 crore in the June quarter, while Advanced Materials revenue increased to Rs 805.48 crore from Rs 649.75 crore. Revenue from the Others segment stood at Rs 191.31 crore, compared with Rs 177.99 crore in the previous quarter.
Arvind Expands Manufacturing And International Presence
Arvind continued to advance its manufacturing and international expansion plans during the quarter. Its greenfield garment manufacturing facility in Varanasi, Uttar Pradesh, has commenced operations. The first phase is expected to generate annual revenue of around Rs 250 crore once it reaches full utilisation.
The company also established a denim design and marketing hub in Amsterdam to strengthen its engagement with European customers.
Demand conditions remained stable despite geopolitical uncertainties, higher logistics costs and cautious purchasing in some international markets. Festive-season demand supported domestic textile sales, while the Advanced Materials business continued to benefit from demand linked to industrial capital expenditure, infrastructure, mobility and specialised applications.
Arvind FY27 Growth Outlook
For Q3 FY27, Arvind expects its Advanced Materials business in India to deliver around 18 per cent growth in revenue and Ebitda, with margins projected in the 14–15 per cent range. Demand is expected to be supported by industrial capital expenditure, infrastructure, mobility and specialised applications.
The textiles division is projected to record early double-digit revenue growth, although margins may remain at current levels amid elevated input costs. The company also expects Dalco-GFT margins to remain stable at 15–16 per cent as integration progresses and capital expenditure programmes are brought forward.
Arvind said higher raw material costs and global uncertainties remain near-term challenges. Its ongoing capital expenditure programmes are on track, with spending expected to exceed Rs 500 crore for the full financial year FY27.
