Arvind Ltd Q2 Profit Up 70% to Rs 106.74 Cr

New Delhi, Nov 7 (PTI) Textile and apparel firm Arvind Ltd on Friday reported a 70 per cent rise in consolidated net profit at Rs 106.74 crore in the second quarter ended September 30, 2025, on the back of increased revenue and a deferred tax charge outgo incurred in the year-ago period.

The company had posted a consolidated net profit of Rs 62.77 crore in the second quarter last fiscal, Arvind Ltd said in a regulatory filing.

Arvind Ltd said it incurred a deferred tax charge outgo of Rs 29.35 crore in the second quarter last fiscal consequent to the change in long term capital gains tax rate from 20 per cent plus surcharge and cess (with indexation) to 12.5 per cent plus surcharge and cess (without indexation).

Consolidated revenue from operations for the second quarter stood at Rs 2,371.14 crore, up from Rs 2,188.31 crore in the corresponding period last fiscal, it added.

Total expenses in the quarter stood at Rs 2,237.22 crore as compared to Rs 2,065.57 crore in the year-ago period, Arvind Ltd said.

In an investor presentation, the company said in the second quarter there was strong volume growth in fabric and garmenting and its near term orderbook is full.

Garment volume was at 10.7 million pieces, a growth of 17 per cent YoY, it added.

Denim fabric achieved a volume of 15.2 million meters, a growth of 16 per cent, supported by higher verticalisation and stable realisations. Woven fabric registered a volume of 35.1 million meters, a growth of 8 per cent at 100 per cent capacity utilisation, the company added.

While uncertainty and unpredictability continues for US business, the company said in the second quarter there was no customer loss despite US tariffs, supported by its integrated, end-to-end supply chain and differentiated product portfolio.

The total exposure in terms of direct revenue from US is limited to Rs 500 crore, which is 21 per cent of topline, it said, adding the tariff impact in the second quarter was Rs 23 crore, partially offset by increased volumes.

"Q2 FY26 was an eventful quarter for the company. During the first half of the year, the global economy continued to grapple with multiple trade disruptions and geopolitical conflicts," it said.

On the guidance for Q3, Arvind Ltd said the global trade environment remains uncertain, especially for US linked supply chains.

The current order book and pipeline remains healthy across textiles and AMD (advanced materials division) and AMD division is expected to maintain 18-20 per cent revenue growth.

"With selective deferrals of non-critical items, the annual capex program is revised to Rs 400-450 crore," it added.

The current global disruptions are an opportunity to reshape supply chains and position the company as "a trusted, resilient partner for global brands", Arvind Ltd said.