Q1 2027 Arvind Ltd Earnings Call Transcript
Key Points
- Denim fabric volume hit a 16-quarter high of 17.5 million meters, up 34% year-over-year, reflecting robust demand and market share gains.
- Advanced Materials business delivered its highest-ever quarterly revenue and EBITDA of INR650 crore and INR97 crore, with India business growing 40%.
- Consolidated revenue and EBITDA grew 25% and 39% respectively, with EBITDA margin improving by 104 basis points to 10.3%.
- Successfully completed maiden QIP of INR500 crore, oversubscribed multiple times, strengthening the balance sheet and reducing debt.
- Strategic initiatives include establishing a UK design gallery, partnering with manufacturing units in Bangladesh and Egypt, and acquiring Dalco-GFT to enhance global footprint and supply chain resilience.
- Textile margins declined to 8% from 8.4% year-over-year due to INR100 crore input cost inflation from geopolitical tensions, impacting profitability.
- Garmenting revenue growth was moderated by a higher contribution from value segment products, with margins expected to take 18-24 months to reach double digits.
- Elevated raw material costs and supply-side challenges continue to pressure profitability across businesses, with pricing catch-up expected to take a couple of quarters.
- Industrial segment in Advanced Materials experienced lower growth due to capacity constraints and delayed CapEx, with new capacity not yet online.
- Dalco-GFT's EBITDA margin was impacted at 15.1% due to elevated raw material costs, and its debt repayment is scheduled over five years, limiting near-term cash flow flexibility.
Ladies and gentlemen, good day and welcome to the Arvind Limited Q1 FY27 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Satya Prakash Mishra. Thank you, and over to you, sir.
Good morning, everyone. A very warm welcome to Arvind Limited earnings call for the quarter ended June 2026. The financial results and investor presentations have been uploaded to our website, and I hope you have had enough time and opportunity to review them. Before we begin, let me introduce the leadership team.
Joining me today, Mr. Punit Lalbhai, the Vice Chairman; Mr. Jayesh Shah, Whole-time Director and Group CFO; Mr. Nigam Shah, Executive Director and CFO of Arvind Limited; Mr. Gurpreet Singh Bhatia, CEO and President of Advanced Materials business; Mr. Karan Ojha, CEO of Wovens business.
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