Arvind Ltd, a Gujarat-based textile to retail conglomerate with focus on textiles, apparels, advanced materials, environmental solutions, telecom and omnichannel commerce, reported a largely flat year-on-year growth in consolidated net profit attributable to equity holders of the parent at ₹53.45 crore for the first quarter of FY27.Consolidated revenue from operations rose 25 per cent year-on-year to ₹2,501 crore during the April-June quarter, while EBITDA increased 39 per cent to ₹258 crore, with the margin improving to 10.3 per cent from 9.3 per cent a year ago. The strong operating performance was driven by robust demand across the company’s core businesses and particularly strong growth in Advanced Materials.Cost impactHowever, the improvement at the operating level did not translate into a similar increase in net profit. The company’s quarterly performance was impacted by higher input costs, while the acquisition of Dalco-GFT also added to depreciation and finance costs. The acquisition resulted in an additional ₹10.7 crore of depreciation during the quarter and ₹10.6 crore in incremental finance costs related to the $110 million loan taken for the transaction. The company also incurred around ₹23 crore, net of tax, in exceptional costs related to the acquisition.The Textile division reported revenue of ₹1,735 crore, up 13 per cent, though its EBITDA margin was impacted by an increase of around ₹19 crore in input costs. The Advanced Materials business reported an 85 per cent increase in revenue to ₹650 crore, with EBITDA more than doubling to ₹97 crore. Garmenting revenue stood at ₹497 crore, supported by a 13 per cent increase in volumes, which crossed 11 million pieces for the first time.During the quarter, Arvind also consolidated the financials of Dalco-GFT, acquired in May 2026. The US-based technical textiles company contributed ₹157 crore in revenue and ₹24 crore in EBITDA during the approximately 1.8 months of operations included in the quarter.The company’s denim fabric volumes rose 34 per cent to 17.5 million metres, the highest level in 16 quarters, while woven fabric volumes increased 7 per cent to 31.2 million metres. Garmenting volumes crossed 11 million pieces, registering a 13 per cent year-on-year increase, as higher verticalisation supported growth across the textile businesses.Growth driverThe Advanced Materials business was a key growth driver, with its India operations growing 40 per cent to ₹493 crore. The company said the Human Protection segment benefited from normalisation in defence procurement activity in India and easing tariff-related pressures in the US, while the Composites business gained from demand from renewable energy and mobility applications.Arvind’s acquisition of Dalco-GFT, its largest-ever acquisition, also expands its presence in the US technical textiles market. The acquisition gives the company access to four segments — automotive, geotextiles, industrial and furniture & furnishings — with a total addressable market of around $2.5 billion.The company said the operating environment remained challenging amid changing global trade channels, higher raw material costs and shifting logistics patterns linked to developments in West Asia. It expects raw material availability and cost escalation to remain a concern and is working on mitigation measures to protect margins.Capex planFor FY27, Arvind plans to invest ₹450-500 crore in growth capital expenditure. The company said demand remains resilient across textiles and Advanced Materials, while the UK-India free trade agreement and improving domestic demand could provide additional growth opportunities for the textile business.Arvind had also recently raised ₹500 crore through a qualified institutional placement, which was significantly oversubscribed. The company said the proceeds will primarily be used to reduce debt and strengthen its balance sheet.Published on August 12, 2026