Arvind Limited, a cornerstone of India’s textile and apparel industry, has demonstrated remarkable composure and strategic foresight in navigating a highly volatile global environment. As the company closes FY2024-25 with solid operational and financial performance, it remains focused on long-term value creation, driven by a blend of sustainability, innovation, and disciplined execution. While FY26 begins amid global uncertainties and policy shifts, Arvind continues its journey with cautious optimism and a clearly defined roadmap for sustainable growth.
Outlook for FY26
The latest UK free trade pact is a positive development for the entire industry and opens up a new key geography for the company, which currently accounts for less than 2% of its business. At the same time, the recent tariff measures introduced by the United States have had far-reaching implications for the global economy, creating both opportunities and challenges while amplifying uncertainty across industries. As an immediate fallout, Arvind is witnessing higher demand for garments and fabrics, with positive signals from key US customers indicating increased business. However, margins may come under pressure as part of the tariff increase is being absorbed in the selling price. Proactive measures are being taken to protect margins through additional volumes and cost optimization.
Given the prevailing uncertainty, it is premature for the company to provide guidance for FY26, as the business environment remains hard to predict. However, the long-term strategy stays on course. Instead, the company is adopting a vigilant and calibrated approach, closely tracking global policy developments and international market trends. In line with this measured stance, Arvind will provide formal guidance for FY26 at a later stage of the fiscal year.
Despite the volatility in the external environment, Arvind is continuing with ongoing capacity addition through capex, which in essence depicts its resolve for a long-term growth plan. Though the entire capex program is within the free cash envelope of the company, it is taking a pause on all non-critical and discretionary capex plans till clarity emerges on the tariff front. This disciplined approach gives Arvind the strength to execute its business plan while maintaining operational and financial agility. The company continues its journey to create value for all its stakeholders and remains committed to delivering ROCE of over 20% in the coming years.
FY 2025 Highlights
Reinforcing its long-term commitment to sustainability and with the objective of further reducing its carbon footprint, Arvind has signed a 25-year Power Purchase Agreement (PPA) to secure electricity from renewable sources. As part of the agreement, Arvind along with other user members will subscribe up to 26% of the equity stake to qualify as a Group Captive. This strategic initiative will increase the share of renewable energy to approximately 60%. The investment is expected to yield an attractive payback period of less than two years and is projected to improve EBITDA margins by approximately 30 to 40 basis points by FY27.
Arvind has also retained its numero uno position in the Global Sustainability Assessment by S&P (DJSI), ranking #1 in India and #7 globally. This recognition not only reflects the company’s ongoing efforts in sustainability but also reaffirms its commitment to making sustainable development a cornerstone of its business model.
Resilient Performance in FY25
FY2024-25 was a year defined by volatility and flux. Arvind confronted early industrial actions, the backdrop of general elections, geopolitical disruptions in neighboring regions, and significant global trade shifts, including the recent tariff impositions. Yet, despite these multi-layered challenges, Arvind demonstrated steady performance across its key business segments.
In Q4 FY25, the textile division saw significant volume growth, particularly in denim and woven fabrics. Denim fabric sales hit 14.6 million meters — the highest in the last 11 quarters — representing a 14% growth. For the full year, denim volumes stood at 51.6 million meters, an 8% year-on-year increase, with capacity utilization at an impressive 90%. Woven fabric operations, running at nearly full capacity, delivered 33.2 million meters in Q4, up 5%, and 128 million meters for the full year.
Garmenting continued to perform robustly, with Q4 volumes reaching 9.5 million garments, the highest in 12 quarters. The full-year volume rose to 37.2 million garments, a 16% increase, driven by deeper relationships with marquee clients, category diversification, and operational efficiencies. The strategy to gain wallet share with key accounts and attract new customers played a crucial role in this growth.
The Advanced Materials Division (AMD) also demonstrated a strong recovery in Q4, with volumes rising by 14% as inventory levels normalized among key accounts, especially in the specialty workwear segment. The division achieved its highest-ever quarterly revenue at ₹451 crore, a 17% year-on-year growth. For FY25, AMD recorded ₹1,544 crore in revenue, marking a steady upward trajectory.
Arvind Limited’s ability to perform steadily amid a complex and evolving global landscape is a testament to its strategic foresight, operational resilience, and deep-rooted commitment to sustainability. While FY26 may bring new challenges, the company’s focus on long-term value creation, supported by prudent capital allocation, diversified growth engines, and strong customer relationships, positions it well for the future. As global markets stabilize and new trade avenues open, Arvind is poised to capitalize on emerging opportunities and reinforce its leadership as a forward-thinking, purpose-driven organization in the global textile industry.