Arvind Limited , a leading textile manufacturer, has disclosed that recent tariffs imposed by the United States are expected to impact its direct business operations in the US market. The company estimates this will result in an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) impact of ₹25-30 crores for the quarter.

Tariff Impact and Strategic Response

Arvind reported that India faces a disadvantageous position due to US tariffs reaching 50% in the first quarter, the highest among competing markets. To navigate this challenging tariff regime, the garment manufacturer has implemented a multi-pronged strategy involving:

1. Supply chain realignment
2. Expansion into non-US markets
3. Cost optimization

Financial Implications

The estimated EBITDA impact of ₹25-30 crores represents a notable financial consideration for Arvind. To put this in perspective, it's helpful to look at the company's recent financial performance:

The anticipated impact represents approximately 9.5-11.5% of the company's Q2 FY26 EBITDA, indicating a significant effect on quarterly earnings.

Performance and Outlook

Despite tariff pressures compressing margins, Arvind delivered a good second quarter performance, attributed to marquee clients and product diversification. Vice Chairman Punit Lalbhai indicated that tariff mitigation measures are progressing well, with expected improvements in cost position through efficiencies.

The company maintains a positive outlook for the coming quarter, reporting a healthy Q3 order book. Arvind anticipates garment volume growth in the mid-teens range due to increased capacity, which could help offset some of the challenges posed by the US tariffs.

Mitigation Strategies

Arvind is actively implementing several measures to counter the impact of US tariffs:

1. Collaborating with customers and vendor partners to reset the supply chain
2. Adjusting pricing and sourcing strategies
3. Focusing on improving operational efficiency
4. Re-engineering costs to improve margins
5. Maintaining strong customer relationships
6. Implementing structural cost savings

Management Commentary

Sanjay Lalbhai, Chairman of Arvind Limited, commented on the situation in the company's recent investor presentation: "We are closely monitoring recent developments concerning the imposition of tariffs by the United States Government. The company will continue to assess the situation and make necessary adjustments in its financial statements, if required."

Future Plans

Arvind remains committed to its growth strategy, with plans for capital expenditure of ₹400-450 crores for FY26, of which ₹220 crores has already been invested. The company is also accelerating efforts to onboard new discerning customers, potentially to diversify its market presence and mitigate risks associated with tariffs.

As the situation evolves, investors and stakeholders will be keenly watching how effectively Arvind can implement its mitigation strategies, leverage its expanded capacity, and navigate the challenges posed by the new tariff environment.

Arvind Limited , a leading textile and apparel company, has announced its quarterly results for the period ended September 30, 2025, showing a mixed performance with growth in revenue and profit from continuing operations.

Financial Highlights

Arvind's revenue from operations for the quarter increased to ₹1,801.78 crores, up from ₹1,670.27 crores in the same period last year, marking a 7.87% year-over-year growth. This growth in revenue indicates continued demand for the company's products.

The company's profit from continuing operations saw a significant improvement, reaching ₹75.93 crores compared to a loss of ₹24.68 crores in the previous year. This turnaround in profitability suggests enhanced operational efficiency and cost management.

Demerger of Advanced Materials Undertaking

The National Company Law Tribunal has sanctioned the demerger of the Advanced Materials Undertaking to Arvind Advanced Materials Limited, a wholly-owned subsidiary, effective September 1, 2025. This business unit generated ₹293.87 crores in revenue and ₹21.52 crores in profit after tax for the quarter, now classified as discontinued operations.

Half-Year Performance

For the half-year period, Arvind reported total revenue of ₹3,307.02 crores compared to ₹3,063.13 crores in the previous year, showing continued growth on a broader timescale.

Operational Updates

• The company's operations at the Santej plant, previously affected by worker strikes, have since normalized.
• Earnings per share from continuing operations was ₹3.03 for the quarter.

Outlook and Challenges

Arvind is monitoring potential impacts from US government tariff impositions and is evaluating mitigation strategies. This proactive approach demonstrates the company's awareness of external factors that could affect its business.

While the company has shown improvement in its continuing operations, the demerger of the Advanced Materials unit and potential tariff challenges present both opportunities and risks for Arvind's future performance.