Arvind Limited is a leading Indian textile and apparel company headquartered in Ahmedabad, Gujarat. Established in 1931 by the Lalbhai family, it has grown into one of India’s largest integrated textile manufacturers, with a significant presence in denim production globally.

Business Overview

Arvind’s operations are divided into three primary segments:

  • Textiles: The core business, contributing the majority of revenue (~80-85%), includes manufacturing fabrics (denim, shirting, knits, and bottom weights like khakis) and garments (jeans, shirts). It’s among the world’s largest denim producers, with a capacity of 100 million meters per annum (MMPA) for denim and 150 MMPA for woven fabrics as of FY23.
  • Advanced Materials: This segment focuses on specialized products like human protection fabrics (e.g., for firefighters, soldiers), industrial products, advanced composites, and automotive fabrics, catering to niche, high-value markets.
  • Others: Encompasses e-commerce, agriculture produce, telecom solutions (EPABX, one-to-many radios), and real estate development, including residential units.

The company operates 12 manufacturing facilities in India, with key plants in Santej and Naroda, Gujarat, and exports to over 70 countries. Its subsidiaries include Arvind PD Composites, Arvind OG Nonwovens, and Arvind Internet, reflecting its diversification efforts. On April 3, 2025, Arvind incorporated a new wholly-owned subsidiary, Arvind New Technologies Private Limited, with an initial investment of Rs 70,000, aimed at advancing textile manufacturing capabilities.

Recent Financial Performance (Q3 FY25)

Arvind’s Q3 FY25 (October-December 2024) results, released on January 28, 2025, show solid growth:

  • Revenue: Rs 2,089.21 crore (consolidated), up 10.64% YoY from Rs 1,888.24 crore in Q3 FY24, driven by strong demand in garmenting and fabric segments. Standalone revenue was Rs 1,945 crore.
  • Net Profit: Rs 103.42 crore, up 12.78% YoY from Rs 91.70 crore, marking its highest Q3 profit in recent years. Sequentially, profit jumped 73.17% from Rs 59.72 crore in Q2 FY25.
  • EBITDA: Rs 223 crore (standalone), with a margin of 11.31%, slightly down from 11.42% YoY due to rising raw material costs (e.g., cotton, polyester).
  • Debt: Reduced by Rs 123 crore (long-term) in Q3, with total debt at Rs 1,560 crore (down from Rs 2,121 crore three years prior), reflecting a focus on deleveraging.

For 9M FY25, revenue was Rs 6,018 crore, with denim and garment volumes showing QoQ improvement. The advanced materials division is on a 20-25% growth trajectory, though it faced muted growth in Q3.

Stock Performance and Market Position

As of April 5, 2025:

  • Share Price: Around Rs 330-340, down 4.54% on April 4 from Rs 346, per NSE/BSE data. The 52-week range is Rs 236.05 to Rs 450.40, with recent pressure linked to U.S. tariff concerns (25% on foreign imports, announced March 2025).
  • Market Cap: Approximately Rs 8,635-8,948 crore ($1.04-1.08 billion USD).
  • Returns: Up 177-191% over three years (outpacing Nifty Midcap 100’s 72.74%), though down 14-16% in the last three months.

Shareholding Pattern (as of December 31, 2024)

  • Promoters: 39.59%, led by Sanjay S. Lalbhai and family (down from 41.14% in March 2024).
  • FIIs: 18.66%, up slightly QoQ.
  • DIIs: ~14-15%, with mutual funds at ~8-9%.
  • Public: 24.15%.

Strategic Developments

  • New Subsidiary: Arvind New Technologies Pvt. Ltd., incorporated April 3, 2025, aims to innovate in textile manufacturing, aligning with the “One Arvind” consolidation strategy to unlock value.
  • Sustainability: Partnered with PurFi Global in January 2025 to scale sustainable textile production in Gujarat, targeting waste conversion for clients like H&M.
  • Capex: Plans significant capital expenditure in FY25 to boost capacity and efficiency, despite high cotton costs impacting competitiveness (noted by Kulin Lalbhai in January 2025).

Arvind faces challenges from raw material cost inflation, U.S. tariffs (affecting export margins), and muted advanced materials growth. However, its debt reduction, strong order pipeline (e.g., garmenting exports), and diversification into high-margin segments bolster resilience. Analysts project a 12-month median target price of Rs 454.5 (range Rs 417-471), suggesting upside potential if trade headwinds ease. The company anticipates continued momentum into Q4 FY25, driven by sequential improvements and festive season demand.

Disclaimer: This article reflects data available as of April 5, 2025, updated through March 31, 2025, from stock exchange filings, company announcements, and verified sources. Financials and shareholding details may shift with new disclosures. This content is for informational purposes only and not investment advice; readers should consult official sources for decision-making.

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