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AArvind · Executive Cockpit

Board Pack

Value creation, performance and risk review — FY26 (Mar'26, actuals). Textiles · Advanced Materials · Environmental.

₹9,303 Cr

Revenue (FY26 actuals)

Growth & JV initiatives

25,800

Employees

Among the world's largest denim makers

Market position

Listed (NSE: ARVIND · BSE: 500101) · Lalbhai promoters 39.5% · Chairman Sanjay Lalbhai · ED & CFO Nigam Shah · HQ Ahmedabad, Gujarat

Where we stand

Executive scorecard

Arvind · Board Pack · 1 · Executive Summary

Total Revenue

₹9,303 Cr

prior ₹8,329 Cr

Revenue Growth (YoY)

11.7%

prior 7.6%

EBITDA

₹1,004 Cr

prior ₹919 Cr

EBITDA Margin

10.8%

prior 11.0%

Value-Added & AMD Revenue

₹3,494 Cr

prior ₹3,050 Cr

Value-Added Mix %

37.6%

prior 36.6%

Customer Repeat-Order Rate

108.0%

prior 105.0%

Growth + Margin (Rule of 40)

prior 19

Executive summary

Growth & profitability

Revenue, EBITDA & mix

Arvind · Board Pack · 2 · Performance

Revenue by division

Woven / Shirting30%

Garments20%

Advanced Materials (AMD)19%

Denim16%

Environmental & Others15%

Woven / Shirting

₹2,800 Cr

+9% · EBITDA 10.5% · Val-add 35%

Garments

₹1,900 Cr

+16% · EBITDA 11.5% · Val-add 55%

Advanced Materials (AMD)

₹1,750 Cr

+13% · EBITDA 15% · Val-add 70%

Denim

₹1,450 Cr

+6% · EBITDA 9.5% · Val-add 30%

Environmental & Others

₹1,403 Cr

+10% · EBITDA 8% · Val-add 25%

Vertical-integration validation

Division economics & margin journey

Arvind · Board Pack · 3 · Value-Chain Shift

Division	Scaled	Revenue	Value-added	EBITDA uplift	Savings	Status
Denim (heritage core)	1987	₹1,450 Cr	₹430 Cr	8%→138% (+130)	92%	Integrated
Woven / Shirting	1995	₹2,800 Cr	₹980 Cr	9%→294% (+285)	90%	Integrated
Knits	2008	₹900 Cr	₹300 Cr	8%→90% (+82)	84%	Integrated
Garments (programs)	2012	₹1,900 Cr	₹760 Cr	9%→219% (+210)	74%	In progress
AMD – Human Protection	2015	₹950 Cr	₹600 Cr	12%→152% (+140)	78%	In progress
AMD – Composites / Industrial	2018	₹800 Cr	₹520 Cr	13%→112% (+99)	55%	In progress
Environmental (Envisol) / Circularity	2020	₹1,403 Cr	₹380 Cr	7%→112% (+105)	40%	Early

Mature divisions carry the margin and reported strong EBITDA expansion as they scaled; the newer engines (AMD, circularity) remain in mix-shift and savings capture.

Balance sheet & liquidity

Leverage, cash & covenants

Arvind · Board Pack · 4 · Capital & Cash

Net Debt / EBITDA

1.4x

target 1.2x

Covenant Headroom

1.6x

target 1.0x

DSCR

2.6x

target 2.0x

Liquidity (cash + undrawn)

₹1,150 Cr

Free Cash Flow

₹360 Cr

target ₹420 Cr

Cash Conversion Cycle

86d

target 75d

DSO (Days Sales Outstanding)

52d

target 48d

Cost & Sustainability Savings Realization

74.0%

target 100.0%

Net leverage 1.4x sits well inside the 3.0x covenant with ₹1,150 Cr liquidity (CARE AA-) — capacity for the ₹450–500 Cr/yr growth capex into Advanced Materials & garmenting while cash conversion (CCC 86d) and FCF improve.

Governance

Watch-list & priority actions

Arvind · Board Pack · 5 · Risk & Actions

●Americas export margin driftceo

Export–Americas GM ~150bps below plan on tariff uncertainty + freight.

→ Tilt mix to Europe/Asia; accelerate value-added & garment-program share in the Americas book.

●AMD + garment programs pulling mix upceo

Advanced Materials and multi-year garment programs lifting the value-added mix toward 38%.

→ Prioritize AMD capex & garment line ramp (37M→60M pieces) to compound margin.

●3 divisions running DSO > 58 dayscfo

Garments (56d), AMD–Human Protection (60d) and Composites (64d) lifting blended DSO.

→ Collections sprint on ₹120 Cr aged AR; tighten export-LC and milestone billing on AMD programs.

●Cotton price exposure on margincfo

Firm Shankar-6 prices + overdue AR pressuring near-term gross margin.

→ Extend forward cotton cover; reforecast H2 margin net of input inflation.

●Deleveraging on trackcfo

Net Debt/EBITDA 1.44x vs 3.0x covenant; liquidity ₹1,150 Cr.

→ Headroom to fund the ₹450–500 Cr/yr capex (AMD + garmenting) without stressing the balance sheet.

●Sustainability savings behind planboard

Cost & sustainability savings at 74% of plan; renewables/water programs lagging.

→ Hold a 90-day recovery plan on energy & water programs; track coal-out-by-2029 milestones.

●Value-chain shift validating thesisboard

AMD revenue and garment programs expanding blended margin ~bps QoQ.

→ Thesis intact; continue disciplined capex into Advanced Materials & branded/value-added fabric.

●Value-added mix below 45% targetboard

Value-added mix 37.6% vs 45% strategic target; commodity denim still dilutive.

→ Push branded/value-added denim, garment programs and AMD attach across the customer base.

Material external signals

[News] Global brands accelerate China+1 India sourcing · GAP Inc.→ garment-program volume + export pull-through

[BSE/NSE] Govt expands textile PLI & cotton-yarn incentives · Industry (PLI)→ supports garmenting & technical-textile capex returns

[BSE/NSE] Peer Vardhman announces spinning capacity expansion · Vardhman Textiles→ defend value-added share; watch yarn pricing

Arvind is listed (NSE: ARVIND · BSE: 500101): headline financials are real FY26 actuals; granular per-division / per-program detail is modelled. AI summary generated by Azure OpenAI (GPT-4.1).