Revenue and Profitability Trends
Arvind Ltd’s net sales have exhibited variability, with a notable dip in fiscal 2021 to ₹5,072.98 crores, likely reflecting pandemic-related disruptions. However, the company rebounded strongly in subsequent years, reaching ₹8,328.81 crores in fiscal 2025. Total operating income mirrored this pattern, underscoring the company’s ability to recover and sustain growth.
Operating profit before depreciation and interest (PBDIT) excluding other income rose steadily from ₹716.69 crores in 2019 to ₹853.40 crores in 2025, with a slight dip in 2021 to ₹462.61 crores. Including other income, operating profit improved to ₹918.59 crores in 2025, reflecting enhanced operational efficiency and income diversification.
Profit before tax (PBT) showed a significant turnaround from a loss of ₹31.35 crores in 2021 to a positive ₹494.11 crores in 2025. Correspondingly, profit after tax (PAT) recovered from a negative ₹27.83 crores in 2021 to ₹368.62 crores in 2025, indicating a robust recovery in bottom-line performance. Earnings per share (EPS) followed suit, rising from a negative ₹0.64 in 2021 to ₹13.5 in 2025.
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Cost Structure and Margins
The company’s raw material costs have generally tracked revenue trends, rising from ₹2,914.60 crores in 2019 to ₹3,730.02 crores in 2025, with a peak in 2022 at ₹4,334.61 crores. Employee costs have steadily increased, reflecting workforce expansion or wage inflation, reaching ₹1,056.34 crores in 2025. Other expenses also rose, indicating higher operational outlays.
Operating profit margins excluding other income have remained relatively stable, fluctuating between 9.12% and 10.92% over the period, with a slight dip in 2023. Gross profit margins improved from 7.48% in 2019 to 9.04% in 2025, signalling better cost management. PAT margins recovered from a negative 0.54% in 2021 to 4.41% in 2025, underscoring improved profitability.
Balance Sheet and Financial Position
Shareholders’ funds have grown consistently, from ₹2,719.29 crores in 2021 to ₹3,786.10 crores in 2025, supported by rising reserves. The book value per share increased from ₹105.02 in 2021 to ₹144.61 in 2025, reflecting enhanced net asset value. Total liabilities have fluctuated, peaking at ₹8,032.10 crores in 2025, with a notable reduction in long-term borrowings from ₹1,141.90 crores in 2021 to ₹292.30 crores in 2025, indicating deleveraging efforts.
Trade payables and current liabilities have increased, consistent with higher operational scale. Net block of fixed assets declined from ₹3,479.15 crores in 2021 to ₹3,295.13 crores in 2025, while capital work in progress surged to ₹407.36 crores in 2025, suggesting ongoing investments. Non-current investments have also grown, supporting diversification.
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Cash Flow and Liquidity
Operating cash flow has remained positive and robust, with ₹762 crores generated in 2025, up from ₹594 crores in 2022 and ₹776 crores in 2021. Cash flow after changes in working capital improved to ₹860 crores in 2025, reflecting efficient working capital management. Investing activities consistently showed cash outflows, peaking at ₹493 crores in 2025, indicative of capital expenditure and strategic investments.
Financing activities have seen net outflows, with ₹270 crores in 2025, suggesting debt repayments or dividend distributions. The company’s cash and bank balances have remained stable, closing at ₹116.58 crores in 2025. Net cash inflow/outflow has been largely neutral in recent years, demonstrating balanced liquidity management.
Summary of Historical Performance
Overall, Arvind Ltd has navigated a challenging period marked by a sharp revenue decline in 2021, followed by a strong recovery through 2025. Profitability metrics have improved significantly, with operating and net profit margins rebounding to healthy levels. The company has strengthened its balance sheet by reducing long-term debt and increasing shareholder equity, while maintaining steady cash flows to support ongoing investments.
These trends highlight Arvind Ltd’s resilience and capacity to adapt to market dynamics, positioning it for sustainable growth in the garment and textile sector.
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