Arvind Limited, headquartered in Ahmedabad, Gujarat, India, was a leading textile conglomerate and ranked among the world's largest fabric manufacturers. It manufactured and supplied fabrics to global brands, including Calvin Klein, Gap Inc., Tommy Hilfiger, and the U.S. Polo Association. The sustainability-profitability dilemma was one of the key challenges faced by the company. As Vice Chairman, Punit Lalbhai oversaw the company’s textile, advanced materials, engineering, and sustainable agriculture divisions. A strong advocate for environmental responsibility, he had played a key role in transforming Arvind into a leader in sustainable textile production. Under his leadership, Arvind achieved 100% water circularity, encompassing reuse, recycling, and regeneration practices, as well as neutrality, which is a balance between water usage and replenishment, in textile production. Further, it met almost 25% of its energy needs through renewable sources. However, these sustainability initiatives presented a dilemma. On one hand, such initiatives offered potential benefits in terms of strong storytelling and positioning both customers (e.g., leading brands in the U.S.) and end-users (i.e., individual consumers). On the other hand, sustainability initiatives resulted in added costs in a highly competitive, low-margin industry such as textiles which could potentially negatively affect profitability. Lalbhai faced three challenges regarding the sustainability-profitability dilemma: convincing senior managers to remain committed to sustainability initiatives, identifying and assessing potential threats to Arvind’s competitiveness due to these commitments, and maintaining profitable growth for the brand in the future.