Textile company Arvind in India records increased profits as brands opt for sourcing outside of China
Reuters, July 30, 2025
India's textile manufacturer, Arvind Limited, has reported a significant rise in consolidated net profit for the June 2025 quarter. The company's net profit soared by 35.44% to reach Rs 53.24 crore (approximately $6.26 million), compared to Rs 39.31 crore in the same quarter last year. This surge was accompanied by a nearly 9.6% year-over-year increase in revenue, which stood at about Rs 2,006 crore.
The company's profit growth can be attributed to global brands shifting their sourcing from China to India. Brands such as H&M and Gap are among those that have opted to source more from Indian textile manufacturers like Arvind. This trend is driven by new U.S. import tariffs and supply chain diversification efforts under changing global trade dynamics.
The move has boosted Arvind's volumes in fabric and garment manufacturing. However, it's not all smooth sailing for the company. Arvind's subsidiary, Arvind Fashions Ltd., reported increased net losses due to a drop in operating revenue, highlighting some segment-specific challenges despite the overall profit growth.
This profit surge reflects how Arvind is capitalizing on global trade shifts and the efforts by international clients to diversify away from China. The textile industry in India is seeing increased profitability and growth as a result.
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[1] Arvind Limited's Quarterly Profit Report [2] Earnings per share increase [3] Shift of global brands sourcing from China to India [4] Impact of U.S. Tariffs on India [5] Rising textile export demand from India amid global shifts
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- The rise in Arvind Limited's consolidated net profit for Q2 2025, as reported in their Quarterly Profit Report, is a testament to the advantages that the textile industry in India is reaping due to global brands shifting their sourcing from China to India.
- The profits of textile manufacturers like Arvind Limited have seen a significant boost with the increase in earnings per share, largely due to the impact of US tariffs and the subsequent trend of supply chain diversification by global brands.
- The shift of global brands sourcing from China to India is a key development in the business sector, influencing the profitability and growth of the textile industry, particularly in India, as a result of the surge in textile export demands amid global shifts.
