Arvind's margin reaches 11.99% as Q4 revenue rises 14.97% YoY
Costs grew slower than revenue, but a higher tax rate and sizable other-income contribution limited the conversion of operating gains into net profit.
Filed 16 May 2026, 14:45 IST · after market close · Arvind Ltd (ARVIND)
Key takeaways
- Consolidated revenue grew +14.97% YoY and operating margin expanded by 0.93 percentage points to 11.99%.
- Net profit rose only +6.41% YoY as the tax rate increased by 23.76 percentage points, despite PBT growth of +40.63%.
- The stock's +4.77% reaction was broadly in line with its 5.08% median absolute move after the last eight results.
Price around the results
Q4 revenue growth translated into faster operating-profit growth
Arvind's consolidated revenue grew +14.97% YoY, while expenses rose +13.76%, allowing operating profit to grow +24.69%. The resulting operating-margin expansion of 0.93 percentage points shows that revenue growth outpaced the cost base. Sequentially, revenue increased +7.61% and expenses +7.06%, lifting margin by 0.45 percentage points.
Tax normalisation diluted the operating improvement
Interest expense fell -13.72% YoY, which supported the +40.63% rise in PBT. However, the tax rate increased by 23.76 percentage points YoY, restricting net-profit growth to +6.41%. Other income accounted for 15.54% of PBT, so a meaningful part of pre-tax earnings came from outside operations.
Margin has recovered for three quarters but remains below peers
Operating margin rose from 8.84% in Q1FY26 to 10.42% in Q2FY26, 11.54% in Q3FY26 and 11.99% in Q4FY26, marking three consecutive quarterly increases. Even after this recovery, Arvind's margin was 2.82 percentage points below the 14.81% median among 93 Consumer Discretionary peers that had reported the quarter.
Management sees FY27 growth alongside near-term cost pressure
Management said it expects double-digit FY27 growth, led by high-double-digit growth in Advanced Materials and mid-teen growth in Garments. The company said input costs have risen sharply and may pressure margins in H1FY27, with recovery expected in H2 subject to easing geopolitical tensions. Management also said the current order book is at healthy levels and that the company plans Rs 450-500 cr of growth-oriented FY27 capex across Garmenting and Advanced Materials.
The market reaction was close to Arvind's usual post-results move
The stock rose +4.77% on the reaction day and was up +6.91% after five sessions. That response was broadly in line with the 5.08% median absolute move after the last eight results, during which the stock rose five times and fell three times. Trading volume on the reaction day was 5.28 times the reference level.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,553 cr | ₹2,373 cr | +7.61% | +14.97% |
| Other income | ₹35 cr | ₹-13 cr | — | +19.97% |
| Expenses | ₹2,247 cr | ₹2,099 cr | +7.06% | +13.76% |
| Operating profit | ₹306 cr | ₹274 cr | +11.82% | +24.69% |
| Operating margin (%) | 11.99% | 11.54% | — | — |
| Interest | ₹41 cr | ₹42 cr | -3.15% | -13.72% |
| Depreciation | ₹78 cr | ₹72 cr | +7.98% | +12.32% |
| Profit before tax | ₹223 cr | ₹147 cr | +51.16% | +40.63% |
| Tax | ₹58 cr | ₹46 cr | +25.41% | +1462.90% |
| Net profit | ₹165 cr | ₹101 cr | +62.98% | +6.41% |
| EPS (₹) | ₹6.10 | ₹3.72 | +63.98% | +5.72% |
Operating margin of 11.99% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.77% | +4.74% |
| Next session | +7.69% | — |
| 5 sessions | +6.91% | +5.26% |
| 15 sessions | +10.86% | — |
| 30 sessions | +24.22% | — |
Volume on the results session was 5.28× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company expects double-digit growth in FY27, led by high-double-digit growth in Advanced Materials and mid-teen growth in Garments.
- Demand for Textiles and Advanced Materials is expected to remain resilient, with major sourcing destinations largely stable.
- Margin pressure is expected in H1 FY27, with recovery expected in H2 subject to easing geopolitical tensions.
- Advanced Materials achieved its guided full-year growth trajectory of 18–20% due to better performance in H2.
- The company achieved its full-year guidance for revenue, EBITDA and margin in FY26.
Expansion
- The company plans ₹450–500 crore of growth-oriented capex across Garmenting and Advanced Materials in FY27.
- Arvind entered the U.S. market through its subsidiary’s acquisition of Dalco-GFT for an enterprise value of about USD 136 million.
New orders
- The current order book is healthy and supported by a robust inquiry pipeline for the upcoming season.
Problems & risks
- Growth was limited by sustained disruption despite a robust demand situation.
- Margin expansion was partly affected by tariffs.
- Demand may be disrupted in the second half of FY27 by inflation and global uncertainties affecting discretionary consumption.
- Input costs across product lines have risen sharply and may pressure margins in H1 FY27.
What to watch
- Whether operating margin holds above 11.99% while management flags input-cost pressure in H1FY27.
- Whether other income's 15.54% share of PBT declines in the next quarter.
- Whether the planned Rs 450-500 cr FY27 capex is reflected in Garmenting and Advanced Materials performance.