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Cash 360

The treasury cockpit — 13-week cash, EBITDA-to-FCF conversion, working-capital unlock, receivables, liquidity and covenant headroom.

Arvind Limited · FY26 (Mar'26, actuals)

Among the world's largest denim makers

25,800 employees · 12+ plants & units · 30 export markets

▲ Executive read· the answer, then the moves

Liquidity is sound at ₹1,150 Cr (≈ 6 weeks cover), but ₹102.0 Cr of working capital is trapped in receivables — and far more in inventory. Pull DSO from 52d to 48d to help self-fund the ₹450–500 Cr/yr growth capex rather than lean on the ₹1,566 Cr of covenant headroom.

5 of 5 headline metrics improving vs prior · still off target: Free Cash Flow ₹360 Cr vs ₹420 Cr, Cash Conversion Cycle 86d vs 75d, DSO (Days Sales Outstanding) 52d vs 48d

Do now — ranked by urgency

1
Cotton price exposure on marginAct now
Why it matters
Extend forward cotton cover; reforecast H2 margin net of input inflation.
What's driving it
Overdue AR
Signal: Alert
FYI
Firm Shankar-6 prices + overdue AR pressuring near-term gross margin.
Act →▤ open the overdue book
2
Unlock ₹102.0 Cr by pulling DSO to the 48d targetWatch
Why it matters
Every day of DSO above 48d ties up working capital; closing the gap releases ≈ ₹102.0 Cr of one-time cash.
What's driving it
DSO 52d vs 48d target
Overdue >60d = ₹212.0 Cr of ₹1,325 Cr AR
FYI
Normalizing laggard divisions to 50d DSO releases ≈ ₹176.5 Cr
Owner: Treasury
Work the overdue book →▤ open the overdue receivables
3
3 divisions running DSO > 58 daysWatch
Why it matters
Collections sprint on ₹120 Cr aged AR; tighten export-LC and milestone billing on AMD programs.
What's driving it
DSO
Signal: Alert
FYI
Garments (56d), AMD–Human Protection (60d) and Composites (64d) lifting blended DSO.
Act →▤ open the overdue book
4
Environmental (Envisol) / Circularity repeat-orders still in the troughWatch
Why it matters
Scale-up dip not yet offset by value-chain cross-sell.
What's driving it
repeat-order rate 96 (<100)
Signal: Retention
FYI
Repeat-order rate 95→91→96; yr-1 attrition 12%. Earliest; PAMI / water programs still scaling.
Owner: Chief Marketing & Sales Officer
Act →▤ open low-repeat programs

🧵 Fibre → fashion: the value-chain shiftStep 5 of 7 · working capital, leverage, covenant◀ Finance 360 Division / Value-Chain 360 ▶All journeys

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↗ Where this connects — act / drill across

▤Evidence· open the overdue-invoice list 🧩Customer Master· term conflicts driving AR 👥Customer 360· DSO by account 🚪Value Creation· debt & deleverage path

Liquidity

₹1,150 Cr

≈ 6 weeks cover

Free cash flow

₹360 Cr

36% EBITDA conversion

Cash conversion cycle

86d

DSO 52 + DIO 92 − DPO 58

Working-capital unlock

₹102.0 Cr

DSO 52→48d target

Exhibit 1

13-week direct cash flow forecast

Net weekly cash (bars) and ending cash (line) vs. ₹250 Cr minimum. Forecast trough: ₹367 Cr.

Above minimum

₹420 Cr

Opening cash

₹2,436 Cr

13-wk collections

₹2,405 Cr

13-wk disbursements

₹451 Cr

Closing cash

Exhibit 2

EBITDA → Free cash flow

₹1,004 Cr EBITDA converts to ₹360 Cr FCF (36%).

Exhibit 3

Cash collected

Monthly, ₹ Cr.

Cash conversion cycle

Working-capital days

DSO — receivables52d

DIO — inventory92d

DPO — payables (offset)(58d)

Cash conversion cycle86d

Where cash is trapped

Working-capital cash unlock

₹176.5 Cr

Normalizing laggard divisions to 50-day DSO releases ~₹176.5 Cr one-time.

Environmental (Envisol) / Circularity63d

₹50.0 Cr

Garments (programs)56d

₹31.2 Cr

AMD – Composites / Industrial64d

₹30.7 Cr

AMD – Human Protection60d

₹26.0 Cr

Denim (heritage core)54d

₹15.9 Cr

Woven / Shirting52d

₹15.3 Cr

Knits53d

₹7.4 Cr

Collections

AR aging

Total AR ₹1,325 Cr

Current days₹690 Cr

1-30 days₹268 Cr

31-60 days₹155 Cr

61-90 days₹112 Cr

90+ days₹100 Cr

Overdue (>60d) = ₹212.0 Cr.

Exhibit 4

Collections priority

Highest DSO first.

Account	Revenue	DSO	Credit risk
Indian Defence / Ordnance	₹240 Cr	62d	Low
H&M	₹480 Cr	60d	Low
GAP Inc.	₹540 Cr	58d	Low
Tata Motors / Auto OEMs	₹180 Cr	58d	Medium
Marks & Spencer	₹210 Cr	57d	Medium
Walmart / George	₹330 Cr	55d	Medium
Levi Strauss & Co.	₹720 Cr	54d	Low

Exhibit 5

Supplier DPO

Working-capital lever.

Supplier	Spend	DPO	OTIF	Risk
Cotton Corp. of India / Shankar-6 ginners	₹2,600 Cr	45d	92%	Medium
Reliance Industries (PSF/PFY)	₹720 Cr	55d	94%	Low
Archroma / Huntsman	₹540 Cr	60d	91%	Medium
Grasim / Birla Cellulose (Viscose)	₹480 Cr	52d	93%	Low
Rieter / Picanol / Toyota (machinery)	₹380 Cr	75d	89%	Low
Trims, packaging & accessories	₹220 Cr	48d	90%	Medium