Arvind Limited (ARVIND) AI Stock Analysis

Arvind Limited

(NSE:ARVIND)

Select Model

Rating:61Neutral

Price Target:INR 568.00▲(15.65% Upside)

Action:reiterated

Date:08/21/26

Arvind earns a moderate score. Financial performance is the largest driver: consistent revenue growth, substantial deleveraging and reliable operating cash flow are positives, but thin net margins, sub-10% ROE and capex-driven free cash flow volatility cap the upside. Technicals are supportive, with the share price holding above all major moving averages and a positive MACD, though near-term momentum is neutral. Valuation is the main drag, as a P/E above 34 looks stretched relative to current profitability, and the sub-1% dividend yield offers little cushion. Earnings call and corporate event data were unavailable and therefore excluded, with their weight redistributed across the remaining components.

Positive Factors

Revenue and earnings recoveryRevenue growth of 15.2% indicates a meaningful recovery in demand and scale after the FY2021 downturn. If sustained across fabric and apparel channels, it can improve capacity absorption and support more stable earnings over the next several quarters.

Negative Factors

Meaningful absolute debtAlthough leverage has moderated, the remaining debt burden can still constrain financial flexibility and increase sensitivity to interest costs or weaker textile demand. This matters because the business is exposed to cyclical volumes and input costs.

Arvind Limited (ARVIND) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 114.86B
Dividend Yield: 0.92%
Average Volume (3M): 41.84K
Price to Earnings (P/E): 28.2
Beta (1Y): 1.07
Revenue Growth: 19.08%
EPS Growth: 10.88%
Country: India
Employees: 24,599
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

Arvind Limited Business Overview & Revenue Model

Company Description

Arvind Limited, an Indian-headquartered company established in 1931, conducts extensive textile operations both domestically and internationally through its core Textiles, Advanced Material, and diverse "Others" segments. The company is involved in m...

How the Company Makes Money

Arvind Limited primarily makes money by producing and selling textile products and apparel across domestic and export markets. Key revenue streams typically include: (1) Fabric manufacturing and sales: revenue from woven fabrics (including denim and...

Arvind Limited Financial Statement Overview

Summary

Arvind Limited shows a steady post-pandemic recovery: revenue has climbed from ₹49.6B (FY2021) to ₹81.1B (FY2025) with net income improving to ₹3.5B, and the balance sheet has been meaningfully deleveraged (debt-to-equity down from 0.78 to 0.41) while equity grew to ₹37.9B. Cash flow is the strongest element, with operating cash flow rising consistently to ₹7.6B and healthy cash conversion above 1.5x earnings. Offsetting these strengths are thin net margins (3-5%), moderate ROE near 9%, a volatile free cash flow line that fell 46% in FY2025 on elevated capex, and an inconsistent FY2025 gross margin figure. Overall a stable, improving but not yet high-return financial profile.

Income Statement

58Neutral

Balance Sheet

62Positive

Cash Flow

65Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	97.98B	93.03B	81.13B	75.66B	82.35B	76.99B
Gross Profit	37.62B	48.09B	11.02B	9.53B	9.18B	7.01B
EBITDA	11.04B	10.50B	9.60B	9.22B	9.25B	8.41B
Net Income	4.14B	4.14B	3.53B	3.37B	4.05B	2.38B
Balance Sheet
Total Assets	0	88.36B	80.99B	72.60B	69.14B	77.05B
Cash, Cash Equivalents and Short-Term Investments	3.13B	3.89B	1.17B	644.80M	1.00B	920.90M
Total Debt	0	16.60B	15.62B	14.48B	15.17B	18.65B
Total Liabilities	-41.41B	46.95B	42.28B	36.40B	35.09B	46.98B
Stockholders Equity	41.41B	40.44B	37.86B	35.43B	33.46B	29.51B
Cash Flow
Free Cash Flow	1.88B	3.44B	2.28B	4.18B	4.62B	4.09B
Operating Cash Flow	4.36B	8.67B	7.63B	6.96B	6.66B	5.95B
Investing Cash Flow	-2.39B	-6.07B	-5.04B	-2.77B	-1.35B	-1.21B
Financing Cash Flow	-2.19B	-2.28B	-1.22B	-4.19B	-5.34B	-4.39B

Arvind Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price491.15

Price Trends

50DMA533.51Negative

100DMA531.15Negative

200DMA454.04Positive

Market Momentum

MACD-11.39Negative

RSI40.20Neutral

STOCH48.93Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ARVIND, the sentiment is Negative. The current price of 491.15 is below the 20-day moving average (MA) of 510.46, below the 50-day MA of 533.51, and above the 200-day MA of 454.04, indicating a neutral trend. The MACD of -11.39 indicates Negative momentum. The RSI at 40.20 is Neutral, neither overbought nor oversold. The STOCH value of 48.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ARVIND.

Arvind Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ARVIND against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:VTL	70Outperform	INR 140.94B	16.32	―	1.03%	3.29%	-1.43%
IN:ARVIND	61Neutral	INR 133.61B	28.18	―	0.92%	19.08%	10.88%
IN:ICIL	61Neutral	INR 87.70B	58.02	―	0.34%	5.30%	-26.76%
IN:RAYMOND	56Neutral	INR 73.26B	126.31	―	―	-5.56%	-99.13%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:TRIDENT	51Neutral	INR 107.93B	27.14	―	2.36%	-2.45%	-10.11%
IN:ALOKINDS	39Underperform	INR 40.17B	-5.28	―	―	6.01%	-11.08%

* General Sector Average

Performance Comparison

IN:ARVIND and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ARVIND	Arvind Limited	491.15	176.27	55.98%
IN:ALOKINDS	Alok Industries Limited	8.09	-9.45	-53.88%
IN:ICIL	Indo Count Industries Limited	442.80	162.46	57.95%
IN:RAYMOND	Raymond Limited	1100.40	528.45	92.39%
IN:TRIDENT	Trident Limited	21.18	-6.88	-24.51%
IN:VTL	Vardhman Textiles Limited	486.70	52.48	12.09%

Arvind Limited Corporate Events

Arvind Limited Raises ₹500 Crore via Qualified Institutions Placement

Aug 5, 2026

Arvind Limited has strengthened its capital base by completing a Qualified Institutions Placement of 9,900,990 equity shares with eligible institutional investors at an issue price of ₹505 per share, raising ₹500 crore in fresh equity. Th...

Arvind Limited Wins Shareholder Nod to Raise Capital via Equity and Securities Issue

Aug 2, 2026

Arvind Limited has secured shareholder approval via postal ballot for a special resolution to raise capital through the issuance of equity shares and/or other eligible securities. The vote, conducted through an e-voting process that closed on 2 Augus...

Arvind Limited Launches Postal Ballot and E-Voting Process for Shareholders

Jul 4, 2026

Arvind Limited has notified stock exchanges that it has published newspaper advertisements in the English and Gujarati editions of the Financial Express announcing a postal ballot and e-voting schedule for shareholders. The disclosure, made under lis...

Arvind Limited Schedules Investor Meeting With Abu Dhabi Investment Authority

Jun 4, 2026

Arvind Limited disclosed that its senior management will meet with the Abu Dhabi Investment Authority on June 11, 2026, in Ahmedabad as part of its investor engagement activities. The company noted that the meeting schedule may change due to exigenci...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 21, 2026

Arvind Limited AI Stock Analysis