A Study on Financial Performance Analysis of Selected Listed Companies of Denim Industry in India

The present study systematically evaluates the financial performance of selected publicly listed denim companies in India, with a specific focus on Arvind Mills Ltd., Nandan Denim, KG Denim, and Aarvee Denim & Exports. Positioned as a crucial segment of the Indian textile and apparel industry, the denim sector faces evolving market dynamics requiring continuous financial and operational optimization. This research employs a quantitative methodology grounded in secondary data sources, including audited financial reports and corporate disclosures, spanning a five-year period (2020–2024). Key financial parameters Return on Capital Employed (ROCE), Net Profit Margin, Current Ratio, Debt-to-Equity Ratio, and Fixed Assets Turnover Ratio were analyzed to assess profitability, liquidity, solvency, and managerial efficiency. Statistical analysis using one-way ANOVA confirmed significant disparities in financial performance across the sampled firms. Findings reveal that Arvind Mills Ltd. consistently demonstrated financial robustness, while Nandan Denim maintained moderate stability. In contrast, KG Denim and Aarvee Denim & Exports exhibited financial distress marked by negative profitability and high leverage. The study underscores the strategic importance of effective capital structure management, financial planning, and operational efficiency in enhancing competitiveness within the denim industry. This research provides actionable insights for industry stakeholders, investors, and policymakers seeking to drive sustainable growth and financial resilience in India’s denim sector.