Arvind Reports Profit Growth Amid Margin Pressure

Arvind reported a 43% year on year increase in net profit for the second quarter, supported by resilient festive demand despite rising raw material costs, as shared by the brand in media reports.

The textile manufacturer, whose clients include Western brands such as Gap and H&M, posted a net profit of ₹148 crore for the quarter ended September 30, compared with ₹103 crore in the year ago period.

Volatility in energy, freight and input costs, triggered by the conflict in the Middle East, along with subdued demand in key Western markets, affected the company’s performance during the first half of the fiscal year. However, stronger festive demand towards the end of the quarter helped drive an improvement in orders, the company said.

Arvind’s textile business, its largest segment, recorded a 19% increase in revenue to ₹2,146 crore. Overall revenue from operations grew 23% to ₹2,919 crore.

Looking ahead, Arvind expects its textile business to deliver low double digit revenue growth in the third quarter. However, elevated input costs are likely to keep margins under pressure amid global economic uncertainty and cautious consumer spending.

The company’s shares rose by as much as 7% following the results. The stock has gained 63% so far this year.