Indian textile manufacturer Arvind posts profit jump as brands move away from China
Arvind
reported a 35 per cent rise in first-quarter profit on Tuesday as global brands move to increase their sourcing from India instead of China.
Arvind, which counts Western brands such as Gap and H&M among its clients, posted a consolidated net profit of 532.4 million Indian rupees ($6.13 million) for the three months ended June 30.
U.S. brands have been diversifying their supply chains beyond China, due in part to geopolitical tensions, while political turmoil in Bangladesh has also prompted global brands to be open to sourcing more from India.
Arvind reported a 10 per cent growth in revenue from operations to 20.06 billion rupees, driven by a 14 per cent increase in revenue from its core textiles business, which accounts for roughly two-thirds of its total sales.
The apparel maker said its strong order book signals increased global interest in India as a sourcing destination.
However, Arvind flagged a knock to its margins for the first half of fiscal 2026 - even as it forecast margins to expand in the second half - due to higher input costs, discounts, and air freight tied to U.S. tariff-led disruptions.
A 10 per cent baseline import levy imposed by the United States remains in effect, even as President Donald Trump has paused steeper country-specific tariffs on Indian goods, weighing on margins at textile exporters.
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