Leading apparel and textile manufacturer, Arvind Ltd, on Thursday released its Q4 and full-year results for 2024-2025, recording a consolidated revenue of Rs 2,221 crore, reflecting a 7% growth from the corresponding period’s Rs 2,075 crore. The company’s Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs 275 crore with a margin of 12.4%, marking a 10% growth from the previous year’s Rs 251 crore and the company’s highest number in 16 quarters.
The textile major’s full year FY25 revenue stood at Rs 8,329 crore with an EBITDA of Rs 919 crore and a margin of 11%, growing 8% from FY24’s revenue of Rs 7,738 crore.
The company’s share price, however, dropped by 4.36% to Rs 381.60 from yesterday’s close of Rs 399.
Profit after tax (PAT) for Arvind Ltd was recorded at Rs 151 crore with a 52% growth on a year-on-year (YoY) basis, which was attributed to domestic tariff area (DTA) creation on carry-forwarded losses of some of its subsidiaries, which led to a reduced net tax provision. The company’s FY25 PAT stood at Rs 353 crore. Return on Capital Employed (ROCE) for Arvind Ltd’s Q4 on a run-rate basis improved by 90 basis points (bps) to 15.7%. Overall net debt increased by Rs 35 crore from the previous year to Rs 1,284 crore.
Among the top growth drivers were denim fabric, woven fabric and Arvind Ltd’s garmenting division. For Q4, denim fabric registered a 14% growth of 14.6 million (Mn) meters and a growth of 8% for FY25’s volume growth of 51.6 Mn meters. Woven fabric recorded a Q4 growth of 5% at 33.2 Mn meters and 128 Mn meters for the full year FY25. The garmenting division recorded full garment volume of 9.5 Mn pieces for Q4, its highest in 12 quarters. For FY 25, this division registered a 16% growth at 37.2 Mn pieces.
The company statement pointed out that there was growth despite significant challenges in FY2 including the national elections, disruptions in neighbouring countries and strategic shifts in product mix and the recent imposition of tariffs. The statement also noted a contraction in its revenue and EBITDA at Rs 200 crore and Rs 60 crore respectively due to a workers’ strike at its biggest textile facility in Santej, which halted operations for 21 days.
Arvind Ltd also attributed its growth in the recent years due to “a disciplined capital allocation strategy, a streamlined debt profile, an optimized capital structure and consistent YoY free cash flow generation.”
The company’s Board of Directors recommended a dividend of Rs 3.75 per equity share of face value of Rs 10 each for the financial year ended March 31, 2025. They said the dividend pay-out works out to Rs 98 crore, which is 28% of the reported consolidated PAT.
Company guidance for FY26 is a long-term strategy that adopts a “vigilant and calibrated approach, tracking global policy developments and international market trends.” Formal guidance for FY26 will be provided at a later stage of the fiscal year.