Arvind Limited (ARVIND) AI Stock Analysis

• Market Cap: ₹93.52B
• Dividend Yield: 1.18%
• Average Volume (3M): 35.32K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.06
• Revenue Growth: 8.84%
• EPS Growth: 41.74%
• Country: IN
• Employees: 24,599
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.30
• 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): 14.11
• Revenue Forecast (FY): ₹91.18B

• Rating: 69 Neutral
• Price Target: ₹365.00 ▲(14.87% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is driven primarily by solid financial performance (revenue growth and improving profitability) and healthy operating cash flow, tempered by balance-sheet leverage and a year-over-year decline in free cash flow. Technically, the trend is positive but appears overextended (high RSI/Stoch), and valuation is moderate with a low dividend yield.

Positive Factors

Revenue growth & margin improvement

Sustained ~11.5% revenue growth with improving gross and net margins signals durable demand and pricing or cost control advantages. Over 2–6 months this supports reinvestment capacity, stronger operating leverage, and resilience to cyclical revenue swings.

Strong operating cash generation

Operating cash flow consistently exceeding net income indicates effective cash conversion and working-capital management. This durable cash generation underpins capex funding, debt service and strategic investments, improving financial flexibility despite FCF dip.

Integrated textile-to-garment business model

Vertical integration across fabrics, garmenting and processing creates structural cost and quality control advantages, enabling capture of value-added margins and flexibility to serve branded and export customers, strengthening competitive position long-term.

Negative Factors

Relatively high leverage

Although debt-to-equity is described as manageable, elevated absolute debt levels reduce financial flexibility and increase interest exposure. Over several months this constrains growth investments and raises refinancing risk if cash flow or margins weaken.

Declining free cash flow

A year-over-year decline in free cash flow, despite positive operating cash, suggests rising capex or working-capital absorption. Persisting FCF pressure can limit dividends, deleveraging and strategic spending, weakening balance-sheet improvement over time.

Exposure to input costs and export demand

Business sensitivity to cotton and other input costs, currency swings and export demand creates structural margin volatility. Reliance on external brand orders and utilization means industry cycles can materially affect profitability and investment planning.

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 primarily generates revenue by manufacturing and selling textile and apparel products. Key revenue streams typically include: (1) Fabric sales: revenue from producing and selling fabrics such as denim, woven shirting, and other textile materials to apparel brands and garment manufacturers (domestic and international). This includes value-added fabrics created through processes like dyeing, finishing, and specialized treatments, which generally command higher realization than commodity textiles. (2) Garment/apparel manufacturing: revenue from producing garments, including supplying finished apparel to customers as part of contract manufacturing (often for brands/retailers) and/or as part of its broader apparel business where applicable. Earnings here depend on order volumes, product complexity, and utilization of manufacturing capacity. (3) Services and processing within the textile chain: revenue can also arise from textile processing activities (e.g., finishing and other mill services) that complement fabric/garment production, where such services are provided as part of customer orders or internal value addition. The company’s earnings are influenced by demand from apparel brands and retailers, export market conditions, cotton and other input costs, currency movements for export-linked sales, and capacity utilization across its mills and garment facilities. Specific material partnerships, customer concentration, segment-level revenue mix, or the contribution of any non-core businesses are null.

Arvind Limited Financial Statement Overview

Summary

Strong income statement trends with ~11.5% revenue growth (2024→2025) and improving gross and net margins. Cash generation is healthy with operating cash flow exceeding net income, though free cash flow declined year over year. Balance sheet is moderate with manageable leverage but relatively high debt levels that add risk.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	86.87B	83.29B	75.66B	82.35B	76.99B	48.86B
Gross Profit	45.77B	43.66B	32.19B	39.12B	28.83B	20.19B
EBITDA	9.70B	9.17B	8.88B	9.21B	8.40B	4.87B
Net Income	4.11B	3.53B	3.37B	4.05B	2.38B	-165.20M
Balance Sheet
Total Assets	82.31B	80.99B	72.60B	69.14B	77.05B	67.21B
Cash, Cash Equivalents and Short-Term Investments	1.17B	1.17B	644.80M	1.00B	920.90M	860.70M
Total Debt	15.37B	15.62B	14.48B	15.17B	18.65B	21.21B
Total Liabilities	43.03B	42.28B	36.40B	35.09B	46.98B	39.54B
Stockholders Equity	38.37B	37.86B	35.43B	33.46B	29.51B	27.19B
Cash Flow
Free Cash Flow	1.88B	2.28B	4.18B	4.62B	4.09B	6.60B
Operating Cash Flow	4.36B	7.63B	6.96B	6.66B	5.95B	7.76B
Investing Cash Flow	-2.39B	-5.04B	-2.77B	-1.35B	-1.21B	-811.00M
Financing Cash Flow	-2.19B	-1.22B	-4.19B	-5.34B	-4.39B	-7.17B

Arvind Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 317.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 below the 20-day moving average (MA) of 351.04, below the 50-day MA of 338.74, and below the 200-day MA of 327.18, indicating a bullish trend. The MACD of 1.76 indicates Negative momentum. The RSI at 54.07 is Neutral, neither overbought nor oversold. The STOCH value of 79.71 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	69 Neutral	₹93.52B	21.31	―	1.18%	8.84%	41.74%
KKCL	66 Neutral	₹26.76B	22.08	―	0.41%	28.67%	-20.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KITEX	59 Neutral	₹31.80B	-96.49	―	0.27%	20.41%	-6.50%
ARVINDFASN	56 Neutral	₹53.97B	65.33	―	0.31%	10.72%	-115.52%
ABFRL	48 Neutral	₹69.07B	-15.34	―	―	-32.83%	31.19%
ALOKINDS	40 Underperform	₹63.70B	-9.11	―	―	-20.02%	25.52%

Arvind Limited Corporate Events

Arvind to Engage Global Investors at March London Meetings

Arvind Limited has announced that its senior management will participate in investor meetings organized by Avendus Spark INDX in London on 10 and 11 March 2026. The engagement underscores the company’s ongoing efforts to interact with global investors and maintain transparent communication with capital market participants, though the schedule may be subject to change due to exigencies for either party.