Revenue +24.7% masks PAT slowdown to +5.6%; margin recovery conditional

Delivered PAT ₹57.8 Cr, YoY growth 5.6%

Margin expanded YoY but constrained by ₹100+ Cr H1 raw material inflation

Denim 17.5M meters (+34%), woven 31.2M (+7%), garment 11M pieces (+13%)

Textile EBITDA margin 8% vs 8.4% prior year; QoQ PAT down 28%

Prior aspiration was margin-accretive; now guided 9–10% growth FY27 with 15.1% margin (down from 16.3% run-rate), citing raw material inflation. Integration capex starting; margin recovery only in FY28.

Prior 'high double-digit' is now '18–20%'; management normalized for industrial capex delays (flooding, execution). Composite Q1 spike (+76%) driven by Q4 spillover (10% of revenue); normalized mid-teens sustainable growth.

Prior guidance 'recovery in H2' now conditional on 'easing geopolitical tensions.' YoY margin declined 0.5 pts despite 21% revenue growth; pass-through may take multiple quarters.

Target double-digit margin pushed to 'middle of next year' (mid-FY28), extending from prior 18–24 month target. Rapid capacity additions offsetting unit economics gains.

Dalco debt to be repaid in 5 years (vs. prior 3–4 years); QIP proceeds (₹500 Cr) offsetting acquisition debt. Capex plans on track but prioritizing maintenance over expansion.

Q1 always lower. About ₹100 Cr inflation in H1 from cotton/yarn/chemicals. Order book 3–4 months out, pricing locked. Trading growth for margin temporarily; pass-through underway; recovery 'all else equal' as market catches up.

18–24 months. Adding capacity in parallel, so new plants at negative margins. Older plants already double-digit. Timeline tied to mix shift.

Asset-light model tying up non-functional mills at 100% utilization already. Leasing additional capacity. Strong demand through end-FY27. No volume pressure expected.

Q1 last year was softest in 5 quarters (tariff uncertainty). Normalizing defense procurement in India; investments in customer base diversification paying off. Composites: 10% Q4 spillover, high-teens/20% sustainable after normalization.

₹500 Cr below current levels. India entity debt back to pre-Dalco levels. US Dalco debt (₹450 Cr) serviced by US entity cash flow. India business debt near historic levels post-fundraise.

Close to 15%. Q1 indexed to knits (lower ASP); high-ASP denim pulled to Q2. Look yearly not quarterly. On track for target on current visibility.

One more year to double-digits or 1.5 years to double-digit. Focus on growth and execution first. Trend positive, better than last year.

Dalco 9–10% growth this year (integration, capex ramp). Next year push to teens with capex. Combined margin will be 15–17%. Dalco margin 16–17%, down from raw materials but recovering with pricing.

High utilization already. Two lines upgraded, capacity online in 3–4 months. Line 8 under evaluation, positively viewed, decision in 1–2 months. 7–8% overall capacity uplift.

Will repay in 5 years. Cash flow sufficient for interest, debt repay, and capex. Not reducing capex to accelerate debt (growth critical).

Strategic minimal investment only. ROCE high (low capital deployed). EBITDA margin 2–3 pts lower (two margins), but high single-digit sustainable. Customers derisking; us geographic diversification.

Debottlenecking capexes ongoing. Geographical expansion, verticalization, design hubs globally. Product premium via design; strong visibility next couple quarters.

50% to Bangladesh; stable, reasonably resilient. Garmenting strength in Bangladesh. Virtual partnerships. Multi-country (India/Bangladesh/Egypt) mitigates brand derisking quota risk.

Maintain auto leadership in Dalco. New growth via Geo-textile (US infrastructure bill). Filtration India-centric, scale via Dalco US base. India defense/legislation strengthening; large market emerging.

Realization depends on customers/regions, not geography. Mid-teens growth target same across regions. No change in realization. Strengthening Europe presence via studios, hiring (18–20 month FTA conversion).

Industrial lower in Q1 due to capex execution delays (flooding). Not market-driven. Pultrusion (building/construction), roll goods (renewables), molding (mobility). Industrial can grow 20%; capacity/efficiency issues this year only.

Co-creating solutions with defense (DRDO, forces). Fabrics to FR coveralls, extreme cold, NBC. Semiconductors: limited India customer base, tech platform different. Roving-based reinforcement (wind) and yarn-based (PCBs) future opportunity, not current focus.

Varanasi factory starting next month. Debottlenecking 2–3 brownfield via automation/second shift. Not detailing partnership model till confident. Focus on mid-teens medium-term growth via capacity on pace.

Housed as wholly-owned subsidiary; view of future capital action (nature undecided). Now focus on growth at 20% and returns profile. Next couple years, head down on growth/market wins. No near-term capital action planned.

Very high ROCE businesses. Can squeeze ₹30–40 Cr capital if efficient. Currently doing opposite: holding raw materials longer to protect customer commitments (geopolitical uncertainty). WC at 90–100 days AMD, 50 days Dalco. Not focus right now; 95%+ OTIF more critical.

Asset-light model tiny now, primarily manufacturing still. Manufacturing core capability (100-year textile legacy). Asset-light will grow as part of portfolio but remain manufacturing-heavy. Digitalization, automation, multi-product (MMF, advanced materials), diversified footprint, higher asset-light proportion.

₹10K Cr base: AMD 20%, Garments mid-teens, Fabric high single-digit overall company early-teens plus 1–2 inorganic. Trajectory similar to what you're seeing.

Both linked. Garmenting at 100% utilization currently. Must add capacity to verticalize 300M meters fabric output. Only 15–20% vertical now. Capacity addition essential; value through verticalization and scale.

Margin hasn't improved; down 0.5 pts YoY despite volume. Gradual recovery as imports normalize (high still), pass-through ongoing. Timeline unpredictable (conflict ongoing). Gradual creep back to old margins.

AMD India strong, but Dalco 9–10% this year (integration/capex ramp). Medium-term catch-up in FY28+ as capex deployed.

Q1 miss due to knit indexation; denim pushed to Q2. Capacity on pace; execution dependent. 18–24 months to margin double-digits.

No quantified FY27 target. Recovery tied to raw material pass-through (timing uncertain). Order book healthy but pricing power lagging inflation.

Two lines upgrades online in 3–4 months. Line 8 decision imminent. Revenue ₹100–110M ('27 peak) with capex continuing.

Dalco 16–17% at peak, currently 15.1% (raw material impact). Margin recovery as pricing passes through; similar lag as textile business.

No target. YoY margin down 0.5 pts despite +21% revenue. Pass-through 'gradual process,' timeline unpredictable.

Currently 7.5%. Rapid capacity adds offsetting unit economics. Focus on growth, not near-term margin expansion.

₹98 Cr deployed in Q1. Plan remains on track; growth-oriented capex for textile, garmenting, AMD, Dalco expansion.

Decision on line 8 in 1–2 months. Will add 7–8% capacity. Significant investment cycle underway for FY27–FY28.

₹100+ Cr raw material inflation in H1 (cotton, yarn, petrochemical). Management trading growth for margin (high volumes to offset costs). Pass-through delayed 3–4 months. Ongoing conflict/tariffs sustain high prices.

PAT grew only 5.6% YoY despite 24.7% revenue growth (margin compression). QoQ PAT fell 28%. Textile EBITDA margin down 50 bps YoY. Garmenting at 7.5% (18–24 months to double-digit). Dalco margin constrained at 15.1% vs 16%+ target.

Dalco integration ongoing (1.8 months so far); capex decisions pending (line 8). AMD industrial segment capex delayed (flooding, shipping delays cited). Timeline slippage risks margin recovery and growth momentum.

Conflicts (Middle East/Ukraine) drive raw material volatility. US tariffs easing (positive for exports), but UK FTA conversion may take 18–20 months. Bangladesh/Egypt partnerships mitigate concentration risk but add execution complexity.

Net debt ₹2,100 Cr post-Dalco. Debt repay extended to 5 years (from prior 3–4 years). QIP ₹500 Cr offsets acquisition debt, but timing of cash deployment and margin recovery uncertain. Dalco debt (₹450 Cr) relies on US entity cash generation (unproven under Arvind ownership).