Arvind Ltd (NSE: ARVIND) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Satya Prakash Mishra — Head, Investor Relations
Punit Lalbhai — Vice Chairman
Jayesh Shah — Executive Director and our Group Chief Financial Officer
Analysts:
Ronak Shah — Analyst
Prerna — Analyst
Vishal Mehta — Analyst
Surya — Analyst
Akshay Kothari — Analyst
Rajat — Analyst
Bimal Sampath — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Urban Limited Q3FY26 earnings conference call. As a reminder, all participants lined will be in listen only mode and there will be an opportunity for you to ask question after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I now hand over the call to Mr. Satya Prakash Mishra. Thank you. And over to you sir.
Satya Prakash Mishra — Head, Investor Relations
Good afternoon everyone and a very warm welcome to Arvind Ltd’s earning call for the quarter ended December 2025. The financial results for the quarter and related presentations were uploaded to our website. Hope you had time to go through it. Before we begin, let me introduce the leadership team. With me joining me today is Mr. Puneet Lalbhai, our Vice Chairman, Mr. Jayesh Shah, full time Director and Group CFO, Mr. Gurpreet Singh Bhatia, CEO and President of AMD Business and Mr. Nigam Shah, CFO of Arvind Limited. We will have the opening remark by Puneet and then I’ll take you through the financial performance and then we’ll go for questions.
I will now invite Puneet to address you on the company’s overall performance for the quarter and strategic path forward. Over to you.
Punit Lalbhai — Vice Chairman
Good afternoon everyone. It’s a pleasure to be here. Thank you for being on the call. If I were to sort of summarize the quarterly performance in a nutshell, I would say that given the circumstances, we’ve had a reasonably good quarter. There was growth on both the textile front and the advanced material front despite a very challenging trade environment, lots of geopolitical disruptions not just in the US but also in South Asia and other parts of the world. And I think the team has done a great job in driving or maintaining margins in the face of tariff related discounts by good cost saving initiatives.
And of course macroeconomic conditions of the dollar etc. Have been favorable. So overall we’ve been able to deliver a strong result. I think the outlook is similarly cautiously optimistic. We have good demand so we should be able to continue the trajectory of the path that we are on currently. And we expect that the quarter four performance will be similar to quarter three in terms of the challenges and opportunities. The challenge remains that we see this geopolitical volatility continuing. I think on the opportunity side, both the UK and now, very importantly the EU FTAs are, you know, sort of in at least have been ratified and there will be now of course a process of getting all the approvals at various levels of government on both sides.
So sometime in the not too distant future we should have duty free access to this very important part of the world. And this will be a huge fillip for the entire apparel industry in India, but also for Arvind because today it’s one of the underrepresented segments in our overall portfolio and there’s great headroom to grow and over the last six to 12 months we’ve been having conversations with the relevant customers to increase our presence in these markets. So we are looking forward to some growth there and that will go a long way in de risking some of our US dependency.
So that’s on the opportunity side as far as textiles and apparel goes. And on the advanced material side we see enough momentum in the business to continue our 18 to 20% growth aspiration going forward. I think one other important update to give everyone is that Our S&P 500 ESG score has been received for this for the last period and there I’m happy to shares that we have improved from 68 to 73 which puts us sixth in the world out of a number of 176 participants ranked and it puts us ahead of 97% of the participants and we are second in India.
ESG is also a very important factor for Europe based customers, so it dovetails well with the FTA coming in and it will help us go a long way. We are of course committed beyond an ESG score to achieving best in class performance on all things esg. So with that I close my general update. I’ll see you again in the question answer session and I request Satya to take you through the details of the quarter.
Satya Prakash Mishra — Head, Investor Relations
Thank you Puneet. Let me share the key operational and financial highlight for the quarter. Our denim fabric volume stood at 13.9 million meters reflecting a growth of 16% primarily driven by higher verticalization. Woven fabric volume came in at 36.7 million meters, marking a growth of 5% in garmenting. We have delivered our second consecutive quarter of 10 million pieces of full garment representing 11% increase year on year coming to AMD Division’s performance. Like Puneet mentioned, as we have already guided and always guided our growth aspiration for the advanced material division remains at over 20% on a CAGR basis.
However, this trajectory will naturally see some quarterly variability due to factors such as industry cycles and the competitive dynamics. Accordingly, it would be more appropriate to assess performance over a longer period of time rather than just expect uniform 20% growth every quarter. As illustrated by the current quarter results, the division has reported revenue and EBITDA growth of 32% and 36% on account of a stellar performance across its sub segments. Revenue for the quarter stood at 2,373 crore up 14% on a full year basis. On a quarterly basis, EBITDA for the same period stood at 286 crore up 15% achieved its first milestone of crossing 12%.
In terms of margin this is the highest ever revenue and EBITDA reported by the company on a quarterly basis. Profit after tax before exceptional Items stood at 125 crores reflecting a robust 17% year on year growth. Higher volumes and timely management action on cost helped us partially offset the tariff impact. Excluding the tariff related headwinds, our reported margins would have crossed a pre designated trajectory of 13% which remains fully aligned with our medium term guidance. XL Division achieved a revenue of 1,717 crore up 9% with an EBITDA of 193 crore at a margin of 11.2%.
Garmenting division revenue at 493 crore up 23%. Backed by favorable product mix and better realizations, AMD reported its highest ever quarterly revenue of 496 crores just short of 500 crores and EBITDA during the period reached 77 crore a growth of 36%. AMD EBITDA margin reached 15.5% again on account of higher growth in more profitable segments and favorable operating leverage. Return on capital during the Same period improved by 150 basis point to reach 16%. This number is 19% if we adjust the EBIT to normalized levels excluding one offs and excluding the CWIP in capital employed. The company has spent about 348 crores in various growth capex projects in the first nine months of FY26.
Coming on to the capital management, I am pleased to share that our disciplined approach over last several years have yielded another positive outcomes. Arvind Advanced Material Limited the entity housing our AMD business has been rated AA rating with a stable outlook by India Ratings. This is the highest rating achieved by an entity within the group and stands one notch above the rating of the parent company Arvind Limited. This development underscores the strength of our business model, cash flows and financial discipline. Our consolidated net debt remains stable and broadly in line with March 2025 levels. Our ability to remain agile, responsive and customer alignment has allowed us to navigate this uncertain times while continuing to deliver on our long standing commitment on growth and value creation.
We continue to adapt to this changing landscape and our performance over the past few quarters reflect the strength of this approach. Guided by our long standing values of partnership, discipline and responsible decision making, we remain focused on navigating volatility while consistently creating long term value for our stakeholders. With this, I request the operator to open the line for questions. Hello? Yes, operator, you may now open the line for questions.
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ronak Shah from Equity Securities Private Limited. Please go ahead.
Ronak Shah — Analyst
Yeah, thanks for the opportunity, sir. So sir, my first question is regarding the tandem and oven segment. So in last few odd quarters we have seen that tannin exports and woven domestic business is continuously witnessing the double digit sort of volume growth. So what is driving this sort of growth and how sustainable it is in near to midterm?
Jayesh Shah — Executive Director and our Group Chief Financial Officer
So I think this reflects two things. One, on the denim side it reflects, you know, the full capacity utilization. For the first time in a long time we have, you know, reached absolute full capacity utilization. So I think if we are able to maintain this level of growth, it will be on volume. If we are able to maintain this volume over the long term, I think that’s a good objective to take. In terms of wovens, there is an impact also of product mix that keeps improving every year. So some growth comes in terms of growth in realization.
Though of course if you look at realization it is reasonably flat. That is because of then cotton price adjustments as well. So if you are correcting for raw material cost adjustment, I think our product mixing woven has improved and I think in both those, in both segments we should continue the product mix improvement journey going forward. But the capacity of course is finite and once you hit 100% capacity, we are not aggressively investing in the fabric side of the business. We are only investing in innovation based or differentiation based capex and some debottlenecking capexes. I think the growth we should look at is vertical growth and I think the ability to fully utilize our denim fabric capacity has come because we have expanded our garment capacity in denim.
And that also reflects in the higher top line compared to, you know, last quarter or last few quarters, you will see an uptick in overall sales value of the garment piece. And that is coming because of a higher proportion of denim garments which are higher fob So I think the future growth should be seen vertically rather than you know, thinking fabric and garment separate.
Ronak Shah — Analyst
Got it. So just to read through this, we can expect some moderation into the volume growth especially in these two sub segments. But your environment team will continue to plop in double digit sort of growth. Does this understanding correct?
Jayesh Shah — Executive Director and our Group Chief Financial Officer
Yes, broadly correct.
Ronak Shah — Analyst
Noted sir. My second question is follow up to this. So this quarter we have seen a recent sort of realization growth in your garmenting. So as you highlighted this just because of the product mix or is there something.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
Yes, it’s product mix. It’s mainly product mix. We also. There’s another trend at play. We produced more than we sold. Right. So we hit some cutoff related. So I think quarter four you will see the impact of that. So every I think now we will see volume growth also going forward. Plus I think the segment that has grown the fastest is denim. So then it will stabilize. Once we achieve the full, and we are close to now full utilization of our denim expansion, there is still some upside left after which we will, you know, become more steady state in terms of the product mix related growth.
But the volume related growth will keep continuing as new factories come online.
Ronak Shah — Analyst
Noted sir. My second question is on AMD so though the sir has highlighted that the 20% sort of figure will be possible in near to long term. But this quarter is there any one off? Because there is something extraordinary in terms of the growth rate.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
No. So I think it’s a. See there are parts of this project business. So we had almost no defense orders for the first two quarters. A chunk of defense orders came in in quarter two we had some good orders in the industrial and in composites which were also chunky and that’s why we’ve seen this growth. But I think overall it’s good to in our mind think that it will be around 18 to 20% if you look few quarters on average and it will be this 14 to 15% EBITDA. Even this we’ve had some very profitable orders in go out in Q3.
So you know we’ve exceeded that 15% mark on EBITDA as well. But I think for long term, you know, consistent growth over many quarters we should consider 18 to 20% and 14 to 15% EBITDA. That should be the thumb rule for. And some quarters will be below that. Some quarters will be better than that.
Ronak Shah — Analyst
Okay, and the last question regarding the recent talk. So Yansai disruptions are getting red flag into the Bangladesh. So what can be the incremental opportunity does this create for the Indian market and how are we this position to benefit from this?
Jayesh Shah — Executive Director and our Group Chief Financial Officer
So it is both a opportunity and a risk. I think a destabilized Bangladesh is a risk, more a risk than an opportunity for us because still we are, you know, as our garment business is still, you know, relatively small compared to our fabric portfolio. Bangladeshi is today end market for our fabrics. So if there is disruption in the Bangladeshi market for whatever reason, it’s not a great news for us. We want stable Bangladesh. But that said, our business model is quite resilient. Over the last couple of years we have reduced our dependency on Bangladesh and now almost all of our export lines used to go to Bangladesh.
Now it’s fairly better distributed. Bangladesh is still important, but there are newer geographies where our denim is going. So to that extent we are taking steps and have taken steps to reduce our dependence there. On the opportunity side, if it’s only yarn that gets tariffed or taxed, then it’s an opportunity because we are a net buyer of yarn. Create some softness in price and we should get advantage because of that. But these are all, you know, gains or losses on the margin. Our overall business model is quite resilient to all sorts of scenarios.
Ronak Shah — Analyst
Got it. That took on my side.
operator
Thank you. The next question is from the line of Prerna from Elara securities. Please go ahead. Thank you.
Prerna — Analyst
Congratulations on good set of numbers, sir. Few questions on macro. Just wanted to understand what is the progress on UK fta? How are we leveraging the opportunity meanwhile till the time it gets operational?
Jayesh Shah — Executive Director and our Group Chief Financial Officer
So I think the second question is, you know, the question that I will answer in detail, I mean on the first part of the question, I think it’s still in the process and I mean we can get back to you. Our corporate affairs team will know exactly where the process has progressed to which we’ll get back to you on. But it’s in process and generally these things take time. All their previous FDA’s also have taken upwards of a year to go from signing to being implemented. So it is somewhere in that phase. And we’ll get back to you on our opinion on that in writing on the efforts.
We are actually focused a lot on strengthening the teams we are hiring and we are reallocating teams to these two new regions. And it’s not just the UK now with eu, I think that’s a huge, it’s a really big deal for our industry. All our competition has had duty free access to both these geographies and now suddenly we’ll be on the level playing field from them all countries, all customers are worried about over dependence on Bangladesh and add to it all this instability, an election cycle coming up, conflict in the neighborhood, India suddenly starts looking much more attractive.
So I think from a directional point of view this is a big deal. Both these FTAs government has done a great job in fast forwarding this process and we can look forward to some good growth as an industry in both these regions. But what are we doing? We are having conversations with customers and we are reallocating a lot of internal marketing resources and sales resources to focus on these geographies fees so that we can build the pipeline before the of the duty free tariff.
Prerna — Analyst
Understood. The second question on denim, you have been able to utilize your capacity to the fullest in the last two to three quarters. Given the opportunity coming in commenting with the FDA’s getting signed, do you think you will be allocating some expansion in denim or woven fabric also to expand capacity to support garmenting?
Jayesh Shah — Executive Director and our Group Chief Financial Officer
There is capacity available in the country and in the world. So as we grow garmenting we should tie up more and more capacities and we will only invest if it makes if you know it’s something that is unique in terms of capability or unique in terms of ip. So we don’t want to grow our fabric footprint beyond a certain point because we have a lot of work to do on growing the garment footprint and we like to focus our financial and execution resources on a more robust vertical journey. And even at this current level we are sub 20% verticalization or just about approaching 20% now.
So if we, if we there is lot. So if we have a dollar to invest it should be invested in garmenting because garmenting is so much easier to sell and all the customers want a vertical operation rather than selling selling fabric and the big opportunities in UK and eu that whole market works on full package. Nobody buys fabric in EU and uk. They only buy full package garments. So we have a lot of work to do in potentially growing up our garment. So if I have a dollar to invest, I invest it in garmenting and fabric I can get from various places.
There are so many good suppliers who can supply me fabric.
Prerna — Analyst
Understood sir. Now coming to commenting, how has been the progress on improvement in margins in the commenting and what are your plans with respect to product expansions like any new categories that you’re planning to get into because these are these markets commanding a newer product category as well apart from your existing categories, some color on that would really help.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
So right now I think our focus is on getting deeper in the categories that we have already opened, we have denim and knits which are the two areas that are going to experience the most growth. We also have shirts, but it’s easier to sell fabric in woven than any other place. So that would be sort of expansion. There would be phase two and then phase three. Three are the more aspirational categories of say activewear where we started a small facility, but there we have a lot of learning and the market is starting from a smaller sort of addressable size than the other segments for us.
So activewear and womenswear would be phase three. But right now we have a lot of work to do in store. Phase one, which is growing denim and knits jersey, which is where the capacity expansions have been invested and currently being invested.
Prerna — Analyst
Understood. And the last question for amd, superb growth in the quarter, could you just help me understand whether it is from the split between domestic and export market in this growth.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
We are at our usual, I think 65, 35 sort of makes in favor of exports. So not, not too different from previous quarters.
Prerna — Analyst
Understood, sir, thank you. And I’ll come back to the question queue. All the best.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
Thanks.
operator
A request to all participants, please restrict your questions. For more questions, please rejoin the queue. The next question is from the line of Vishal Mehta from IIFL Capital. Please go ahead.
Vishal Mehta — Analyst
Yeah, hi and thanks for taking my question. Congratulations on a very strong set of numbers on all fronts. My first question would be, you know, on tariff related discount impact. Last quarter we called out this impact to be around 20, 23 odd crores. This quarter we are calling out a similar impact, you know, in terms of quantification. While, you know, last quarter was only partially impacted, probably one, one and a half month this quarter we have a full impact. So why is there not increase? Have we scaled back our discounting or am I missing something here?
Jayesh Shah — Executive Director and our Group Chief Financial Officer
If you can, I think most of the discounts got baked in fully. We were expecting perhaps we might have to pass on something extra this quarter, but it’s now settled at this level and it will go a little bit up and down based on how the demand is sort of coming around and what level of patience the end consumer has. So us, where we are still quite dependent directly with around 20% of our business on fatigue is where we, you know, look at where we can see some changes or not, you know, so there is a lot of uncertainty around, you know, what exact tariff number will be looking forward so that that number is also a placeholder.
Plus, you know, the product cycles change. So you know, once new products come in there is no discoverable. Then there is an online bidding process that you know, brands have resorted to. So instead of tariff where there is a benchmark you can ask for a discount where a new product is coming in for the first time, you know you don’t have a benchmark so then you try and discover the lowest price product. So there’s a lot of these things going on. So I would say this level of tariff, unless something changes or demand switches happen, we can expect, you know, I mean good, good conservative assumption can be that it will be similar going forward till some trade deal happens with the US.
Vishal Mehta — Analyst
Okay, so 25 crores run rate for the quarter. Full, full quarter.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
I would think so. I mean it can go up and down a little bit but I mean not significantly.
Vishal Mehta — Analyst
Sure. Second question would be, you know, just a clarification on how are we placed on our garmenting expansions now that we also have eu, FDA in our bag. You know it’s still early days but you know, if you can give us some ideas about how you’re thinking about the expansions and what is our current nameplate governmenting capacity? Any third party capacity that is available for governmenting.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
So we do use third party very judiciously because you know the compliance in our industry is a very important factor. And you know we have created 55 million type of capacity and that is moving towards the direction of 60 which we should complete over the next financial year. That was the original plan and I think the limitation is execution capability over and above rather than demand. I think demand is not an issue in governmenting at all. And if we are able to demonstrate good confidence in our execution then in the context of EU we can start to press the accelerator perhaps in the second half of next year.
And till then I would like to focus on this journey and ensure that you know, we are doing a good job in reaching where we’ve committed to reach.
Vishal Mehta — Analyst
Sure. And we have all the enabling resources in terms of land availability etc.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
So no worry about big factories that will come on stream. There is automation happening at the old factories so we don’t need to actually increase the footprint too much beyond the places where we’ve already begun. We have a Varanasi factory coming up. We had a Bangalore facility that came up last year which now is scaling up to full potential and then we have automation in three of our existing facilities ongoing as we speak. So all this growth is going to come in this footprint only.
Vishal Mehta — Analyst
Sure. Thanks. Thanks a lot. All the best.
operator
Thank you. The next question is from the line of Surya from Suniti securities. Please go ahead.
Surya — Analyst
Yeah, thank you. Thank you sir. So most of the questions are answered. So one, one question actually just to, to your reply to one of the person that the worst condition of Bangladesh will be not good for India. So just to understand that when the minister is.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
No, no, that is a misunderstanding. In the short term, disruption in Bangladesh is, is not good for Arvind. For India it is a huge opportunity and I’m a patriot. So I want India to, to grow and I don’t want Bangladesh to suffer also. But it’s the short term because we have a high Bangladesh dependency today. Any disruption there can be a negative. Right. That’s the limited point I was trying to make. And it could be an opportunity on the YAN side because yarn price prices will go down. But that’s not good for India because we have a lot of yarn capacity that has come up in India.
So sometimes, you know, what is good for the whole industry and what is good for an individual player is not the same thing. But in the long term it is good for everybody that India develops its own garmenting capacity. So we have to take market share from all our neighbors and we have been punching under our weight as an industry in the garment field and we have to grow aggressively. And I think now the government has done everything in its power to help us. Now it is the ball is in the industry squat and we have to bat on the front foot and become a world force in garmenting and not be in competition with Bangladesh.
But car own very impressive journey that can be much larger than what Bangladesh is today.
Surya — Analyst
But if you see the YAN for example, those are actually established with a view that no, we should be serving external market and particularly Bangladesh and other countries majorly Bangladesh. But in this context, when, when Bangladesh facing it, don’t you think, you know, India should be thinking more involved and because the minister is saying that no, we India can capture the Bangladesh position very quickly. If that was the case, then we should be developing more facilities in the RMG segments rather than thinking of external supply chains. Issues like yarn should be supplied and more yarn things should be coming out rather than rng.
But now in the rng, if you see in the listed space, you know, adult segments, hardly around 500 million.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
I completely agree with you that we should be doing the best to grow our garmenting industry. And if we are successful in doing that, then we will not need to sell garage to Bangladesh. We can sell yarn to our own garment units and our own fabric units. And I think the only question is that it takes time to set up all these capacities at that scale. So in the short term there is already a dependency. I think in the long term what you are saying is exactly what our government wants and what our industry should be working for.
Surya — Analyst
So we are not the industry and the government are not at all in the same pace what we are.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
No, I don’t think so. I think the government is doing a very good job. I have a view that, you know, they are. I mean PM Mitra park is coming. We have, you know, we are constantly improving on all reforms. Our labor laws have undergone a great change from the very restrictive labor laws in the past. We have, you know, we have great policies at the state level to encourage investment and now we have FTAs. What else can the government do?
Surya — Analyst
No, if you see the given, given the productivity difference between the Bangladesh and India to the tune of 50% labor productivity. So definitely.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
No, no, no. I think there is no difference in labor productivity. We only have an absenteeism, attrition and availability problem where our government sectors are. I think with PM Mitra park, with automation, with digitization, there is no, I don’t think Indian productivity is second to any in the world if done right. I think it is up to our industry to solve those problems and those solutions exist.
Surya — Analyst
But sir, if you see in industry hardly around 500 million pieces of adult garment pieces or let’s say for around 300 to 4, 400 pieces of million pieces of kids where are there. But it is not growing and the individual companies are also dithering to expand. Even in our case also we are, we are actually trying to build up the capacity by 5 million or 10 million pieces per year, not beyond that. So, so how do you think that no India will be able to cope up with the demand that is that is emerging out of the current situation when the.
Maybe EU things will be. EU FTA will be settled maybe after one year, you and uk. But in that case, again another point is the way the, the European Unions consider Bangladesh as underdeveloped countries and still they are ready to extend some sort of concessions. So I mean, don’t you think that the government, I mean the industry is thinking something or let’s say expecting some benefits from the government which is not available in terms of maybe in the wage side or labor side. So that is what actually hindering the progress of building up the capacity in the rng.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
No, no, it’s just we have to focus more as an industry. It’s just that our textile industry, because of historical factors has invested in the upstream. And this change takes some time. But I’m sure that in the medium term we’ll catch up. So this is my view on it.
Surya — Analyst
Okay. And.
Ronak Shah — Analyst
Okay.
operator
I would request you to please rejoin the queue as there are more participants waiting.
Surya — Analyst
Okay.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
Thanks.
operator
Thank you. The next question is from the line of Akshay Chera from Canada. Please go ahead.
Akshay Kothari — Analyst
Yeah. Thank you for the opportunity. I mean, congratulations on a great set of numbers in a challenging environment. So just one question. This is more from the AMD perspective. So is it possible for you to break the AMD performance into say what was our underlying volume growth? What was the currency led benefit that was there and what was the benefit because of the favorable product mix if you could break it up.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
So that’s a very complex answer to give on a call. Sathya, can I think send you that detail offline? Right. I mean I don’t have the. I mean it’s.
Akshay Kothari — Analyst
It.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
It’s a very sort of involved question that you asked.
Akshay Kothari — Analyst
Yeah. So no, not a problem. So thank you.
operator
Thank you. The next question is from the line of Rajat from Kinuza Bell, please go ahead.
Rajat — Analyst
Yeah. Congratulations on a good set of numbers. My first question is on debt level. What’s your outlook on the debt level going forward? Because currently the total debt is around 1200-1300 crores. And do you expect this inventory to broadly sustain or is there any scope for further reduction in leverage over the medium?
Jayesh Shah — Executive Director and our Group Chief Financial Officer
We are very comfortable on leverage. So we are not worried about this level of leverage. And I think we have enough cash flow to finance our growth without increasing leverage. The leverage ratio from this level onwards. So we don’t want to sacrifice growth to further reduce leverage nor do we want to take more leverage and increase risk. So I think we are at the ideal mix and this ratio should continue and we should be able to manage all our growth ambitions keeping this ratio in act.
Rajat — Analyst
Okay. And for my second question is on working capital, guys, what’s your current working capital requirement as a percent of school? And assuming if your top line is will be around 10,000 to 12,000 then what level of working capital will be required and how do you plan to fund this requirement?
Jayesh Shah — Executive Director and our Group Chief Financial Officer
So we have to think of working capital turn and we are at 6, 6, just above 6, 5 time turns which is a good level of working capital turns in the business. And that will continue. So to that extent the ratio of leverage will remain the same. Right. With the earning power provided our margins are broadly Intact.
Rajat — Analyst
Okay, thank you. Thank you very much.
operator
Thank you. The next question is from the line of BMIL Sampath. Please go ahead.
Bimal Sampath — Analyst
Yeah, good afternoon.
Ronak Shah — Analyst
Yeah, so just I was talking on the breakup of our fabric sale. How much is exported directly, how much is domestic B2B and how much is domestic B2C? You know, now you have tied up with this killer also.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
So. And that would still be domestic B2B. So broadly in our fabric business, it is slightly in favor of exports, but there is a big domestic component as well. And out of the domestic components, about thousand crores of fabric and a little bit of Arvind branded ready made, which happens in Arvind store is part of that thousand crore kind of revenue. So B2C is about 1000 crores now, which is, you know, our sale to over the counter fabric suppliers, our own Arvind store and little bit online.
Bimal Sampath — Analyst
Okay, and how much is Arvind store?
Jayesh Shah — Executive Director and our Group Chief Financial Officer
Arvind store. And Arvind store would be, you know, it is about 30 to 40 crores a quarter.
Bimal Sampath — Analyst
Okay, so about 120, 50 crores.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
Yes, but that primary sale, right. The secondary sale will be higher because that is that converted to garment. No, it is a franchise.
Ronak Shah — Analyst
Okay, okay. And second thing is inter segment is only 92 crores. Correct. So out of, in this quarter, so out of 1100 crores of fabric, what we are making, only 92 crores is used for our own consumption. So garmenting there is a big scope to grow it. What is your view on that?
Jayesh Shah — Executive Director and our Group Chief Financial Officer
Yes, that is exactly why we are restricting our investment in fabric and increasing our investment in.
Bimal Sampath — Analyst
So only 10, less than 10% is being used in house now, around 10%.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
Volume, it will be higher. And there are segments where, you know, it is a fabric first business and it will remain a fabric first business. So we have to get to higher utilizations in specifically two segments which are denim and knits, where the customer requires more verticality and it is difficult to sell just fabric. Whereas in woven, we have no urgency to increase garmenting because, you know, we have lot of virtual vertical partners where we go together to the end consumer. And we have deep relationships with such people in Bangladesh, in Sri Lanka, some in Indonesia, some now starting in Africa and some in India also.
So, you know, we have those virtual verticals in place in the woven division. So the urgency to start our own garmenting there is not there. So that will always be a low vertical integration. But in say NICs, we have already touched close to 50% and that number has to go up and in denim. We are approaching that 20% mark.
Bimal Sampath — Analyst
Okay. And capex for FY27 is still. You had indicated around 400, 500 crores a year. Are we still on track?
Jayesh Shah — Executive Director and our Group Chief Financial Officer
You should consider 400 ish plus minus 50. I think maybe plus 50 if things are going well.
Bimal Sampath — Analyst
Okay. Okay. Thank you very much.
Jayesh Shah — Executive Director and our Group Chief Financial Officer
Thank you. Thank you.
operator
Thank you. As there are no further questions from the participants, I now hand over the conference to Mr. Satya Prakash sir for closing comments.
Satya Prakash Mishra — Head, Investor Relations
Thank you once again everyone for joining the call today. We trust most of your questions are addressed and should you need any more assistance or any more explanations on the results today, please feel free to reach out to me and my colleague Himansu. We are just a phone call or an email away. We look forward to engaging with you in our upcoming engagement efforts. Thank you and wish you a pleasant day ahead.
operator
Thank you on behalf of Urban Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.