Arvind Limited is one of India's leading vertically integrated textile companies with a presence of almost eight decades in this industry. It is among the largest denim manufacturers in the world. Arvind Ltd, incorporated in the year 1931, has its registered office in Railwaypura Post, Naroda Road P B No 10010, Ahmedabad, Gujarat, 380025, making it a heritage company that has successfully adapted to modern textile manufacturing requirements.
The company manufactures a range of cotton shirting, denim, knits and bottom weights (Khakis) fabrics and Jeans and Shirts Garments. Arvind Limited is an India-based vertically integrated textile company. The Company operates through three segments: Textiles, Advanced Materials, and Others. This diversified approach has enabled the company to maintain its position as a market leader across multiple textile categories.
The company's operational structure is built around three core segments that demonstrate its comprehensive approach to textile manufacturing.
- The Textiles segment includes fabrics, garments, and fabric retail.
- The Advanced Materials segment consists of human protection fabrics and garments, industrial products, advance composites, and automotive fabrics.
- The Others segment includes e-commerce, agriculture produce, EPABX and one to many radios, developing of residential units, and others.
Arvind is a leading manufacturer of denim and woven fabrics, with capacities of 100 million meters per annum (MMPA) and 150 MMPA, respectively, as of March 31, 2023. This substantial manufacturing capacity positions the company as a significant player in the global textile supply chain, particularly in the denim segment where it has established a strong international presence.
Arvind Ltd has a market capitalization of ₹9,167 Crore as of recent data, reflecting its substantial market presence. The company has demonstrated strong financial performance in recent quarters. Arvind Ltd's revenue jumped 8.07% since last year same period to ₹2,250.53 Crore in Q4 FY2024-2025. This growth trajectory indicates the company's ability to expand its business operations effectively despite challenging market conditions.
The profitability metrics show significant improvement, with Arvind Ltd's net profit jumping 52.52% since last year same period to ₹151.04 Crore in Q4 FY2024-2025. This substantial increase in profitability demonstrates the company's operational efficiency and successful cost management strategies. Arvind Ltd's net profit margin jumped 41.13% since last year same period to 6.71% in Q4 FY2024-2025.
Key financial metrics include:
- Annual Revenue: ₹8,329 Crore (FY25)
- Net Profit: ₹367 Crore (FY25)
- Q4 FY25 Revenue: ₹2,250.53 Crore
- Q4 FY25 Net Profit: ₹151.04 Crore
- Net Profit Margin: 6.71% (Q4 FY25)
The Arvind Ltd's 52-week high share price is ₹450.40 and 52-week low share price is ₹271.55. This trading range reflects the stock's volatility and provides investors with insights into its price movements over the past year. The current PE ratio of Arvind Ltd (ARVIND) is 25.09. The current PB ratio of Arvind Ltd (ARVIND) is 2.34.
Promoter holding in Arvind Ltd has gone down to 39.58% as of March 2025 from 39.61% as of June 2024. This slight decrease in promoter holding indicates stable ownership structure while allowing for greater public participation in the company's equity.
The company has been actively pursuing growth opportunities through strategic initiatives. Arvind Limited expects UK apparel exports to double due to an upcoming FTA eliminating import duties. Currently, UK contributes 5% to revenue, while the US accounts for 30%. This development presents significant expansion opportunities for the company's international business operations.
Arvind has entered a Share Subscription Agreement to acquire a 26% stake in Torrent Urja 28, investing in a 20 MW hybrid power project. This investment will enable Arvind to source approximately 60% of its electricity from renewable sources, supporting its sustainability goals. This strategic move demonstrates the company's commitment to sustainable manufacturing practices and cost optimization through renewable energy adoption.
Despite the positive developments, the company faces certain challenges that investors should consider. The company has delivered a poor sales growth of 2.48% over the past five years. The company has a low return on equity of 10.2% over the last 3 years. These metrics indicate areas where the company needs to focus on improving operational efficiency and capital utilization.
Arvind Ltd warns that US tariffs may impact FY26 margins, prompting a pause on non-essential capex. This external factor poses a potential risk to the company's profitability, particularly given the significant contribution of the US market to its revenue stream.
The textile industry's cyclical nature and dependency on global economic conditions continue to present challenges for sustained growth. However, the company's diversified product portfolio and strong manufacturing capabilities provide resilience against market volatility. The management's focus on operational efficiency and strategic investments in renewable energy and technology advancement positions Arvind Limited well for future growth despite current market challenges.
