Arvind Limited (ARVIND) AI Stock Analysis

• Market Cap: ₹82.03B
• Dividend Yield: 1.18%
• Average Volume (3M): 35.32K
• Price to Earnings (P/E): 20.2
• Beta (1Y): 1.10
• Revenue Growth: 8.84%
• EPS Growth: 41.74%
• Country: IN
• Employees: 24,599
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.45
• Shares Outstanding: 262,114,650
• 10 Day Avg. Volume: 31,208
• 30 Day Avg. Volume: 35,318
• PEG Ratio: 4.73
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 36.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹333.00 ▲(4.80% Upside)

Arvind Limited demonstrates strong financial performance with consistent revenue growth and profitability, though high debt levels pose a risk. Technical analysis indicates bullish momentum, but valuation metrics suggest the stock may be overvalued. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Consistent Revenue Growth

Sustained double-digit revenue growth indicates persistent demand across fabrics and apparel. Over 2-6 months this supports capacity utilization, stronger bargaining leverage with suppliers and customers, and provides a foundation for reinvestment into higher-margin value-added fabrics and product diversification.

Strong Operating Cash Generation

Operating cash flow consistently outpacing net income shows high cash conversion efficiency, enabling funding of capex, working capital and debt servicing without relying heavily on external financing. This durable cash generation underpins financial flexibility and strategic investments.

Vertically Integrated Business Model

Vertical integration across fabric production, finishing and garmenting creates control over quality, cost and lead times. This structural advantage supports margin preservation, faster product development and stronger customer relationships, enhancing resilience to market shifts over months.

Negative Factors

Elevated Debt Levels

Material leverage increases interest burden and limits capital allocation flexibility. Over a medium-term horizon, higher debt elevates refinancing and liquidity risk, constrains ability to pursue growth or capex during downturns, and makes earnings more sensitive to input or demand shocks.

Declining Free Cash Flow Growth

A downturn in free cash flow growth reduces the company's capacity to reinvest, pay down debt or return capital to shareholders. Persisting declines could force trade-offs between capex and deleveraging, weakening long-term strategic flexibility and funding for margin-improving initiatives.

Pressure on EBIT Margin

A falling EBIT margin signals cost pressures or limited pricing power. In the capital- and input-intensive textile industry, sustained margin erosion can materially impact operating profitability and return on invested capital, reducing funds available for growth or balance sheet strengthening.

Arvind Limited Business Overview & Revenue Model

Company Description

Arvind Limited, together with its subsidiaries, manufactures, markets, retails, supplies, and exports textiles in India and internationally. It operates through Textiles, Advanced Material, and Others segments. The company offers denim fabrics, shirting fabrics, woven and knitted fabrics, and voiles and garments products. It also provides a range of specialized clothing and accessories for factory workers, fire-fighters, construction crew, soldiers, and healthcare and security personnel; hot-gas and liquid filtration products; automotive interiors and seating solutions; and composites and coated fabrics. In addition, the company offers water, industrial waste water, and sewage treatment solutions for industries, as well as zero liquid discharge solutions. Further, it is involved in the e-commerce, agriculture produce, engineering, telecommunication, technical textiles, and other businesses, as well as provision of EPABX and one to many radio solutions; and building residential, commercial, and industrial spaces. Arvind Limited was incorporated in 1931 and is headquartered in Ahmedabad, India.

How the Company Makes Money

Arvind Limited generates revenue primarily through the manufacturing and sale of textiles and garments. The company has a diversified revenue model that includes key segments such as denim production, which is a significant part of its portfolio, along with woven and knit fabrics. Additionally, Arvind markets a variety of apparel under its private label brands and through partnerships with global fashion brands. The company also benefits from its strategic alliances and collaborations with international retailers, enhancing its market reach. Besides textiles, Arvind has ventured into advanced materials and sustainable solutions, tapping into growing markets for eco-friendly products. These diverse revenue streams, combined with efficient production processes and branding efforts, contribute significantly to its earnings.

Arvind Limited Financial Statement Overview

Summary

Arvind Limited presents a strong financial performance with consistent revenue growth and profitability. The income statement metrics are robust, but high debt levels on the balance sheet require careful management. Cash flow generation is positive, though the recent decrease in free cash flow growth suggests the need for strategic adjustments to sustain long-term financial health.

Income Statement

Arvind Limited shows a solid performance in its income statement with a consistent revenue growth trend, marked by a 11.5% increase in revenue from 2024 to 2025. The gross profit margin has improved, indicating better cost management or pricing strategies. The EBIT and EBITDA margins are stable, though there is a slight decline in EBIT margin from 2024 to 2025, which may need monitoring. The net profit margin shows slight improvement, reflecting effective control over expenses relative to revenue.

Balance Sheet

The balance sheet of Arvind Limited reflects a moderate financial position. The debt-to-equity ratio is manageable, although the high debt levels could pose risks if not managed carefully. The return on equity is positive, showing that the company is generating returns for its shareholders. The equity ratio is stable, but there is room for improvement to strengthen the financial stability further.

Cash Flow

The company's cash flow statement is positive, with consistent operating cash flows exceeding net income, indicating efficient cash management. Free cash flow is positive, although it decreased from the previous year, which could impact future investments. The cash flow to net income ratios suggest healthy cash generation, but the decrease in free cash flow growth rate from 2024 to 2025 highlights potential areas for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	85.05B	83.29B	75.66B	82.35B	76.99B	48.86B
Gross Profit	41.31B	43.66B	32.19B	39.12B	28.83B	20.19B
EBITDA	9.42B	9.17B	8.88B	9.21B	8.40B	4.87B
Net Income	3.67B	3.53B	3.37B	4.05B	2.38B	-165.20M
Balance Sheet
Total Assets	0.00	80.99B	72.60B	69.14B	77.05B	67.21B
Cash, Cash Equivalents and Short-Term Investments	573.10M	1.17B	644.80M	1.00B	920.90M	860.70M
Total Debt	0.00	15.62B	14.48B	15.17B	18.65B	21.21B
Total Liabilities	-38.71B	42.28B	36.40B	35.09B	46.98B	39.54B
Stockholders Equity	38.71B	37.86B	35.43B	33.46B	29.51B	27.19B
Cash Flow
Free Cash Flow	0.00	2.28B	4.18B	4.62B	4.09B	6.60B
Operating Cash Flow	0.00	7.63B	6.96B	6.66B	5.95B	7.76B
Investing Cash Flow	0.00	-5.04B	-2.77B	-1.35B	-1.21B	-811.00M
Financing Cash Flow	0.00	-1.22B	-4.19B	-5.34B	-4.39B	-7.17B

Arvind Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 317.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ARVIND, the sentiment is Positive. The current price of 317.75 is above the 20-day moving average (MA) of 301.91, below the 50-day MA of 318.16, and below the 200-day MA of 328.68, indicating a neutral trend. The MACD of -3.69 indicates Negative momentum. The RSI at 55.98 is Neutral, neither overbought nor oversold. The STOCH value of 47.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ARVIND.

Arvind Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ARVIND	73 Outperform	₹82.03B	20.23	―	1.18%	8.84%	41.74%
KKCL	66 Neutral	₹28.36B	21.83	―	0.41%	28.67%	-20.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KITEX	59 Neutral	₹34.12B	36.55	―	0.27%	20.41%	-6.50%
ARVINDFASN	56 Neutral	₹63.06B	-355.64	―	0.31%	10.72%	-115.52%
ABFRL	48 Neutral	₹80.70B	-14.63	―	―	-32.83%	31.19%
ALOKINDS	40 Underperform	₹75.02B	-11.98	―	―	-20.02%	25.52%

Arvind Limited Corporate Events

Arvind Limited Releases Analyst Conference Call Recording

Arvind Limited has released an audio recording of a conference call held with analysts and investors on November 7, 2025, to discuss its financial performance for the quarter and half-year ending September 30, 2025. This announcement is part of the company’s compliance with SEBI regulations and reflects its commitment to transparency and communication with stakeholders.