Aarnav Fashions Q1 Results: Net profit drops 11% YoY to ₹168 lakh
Aarnav Fashions Limited reported a net profit of ₹168.10 lakh for Q1FY27, down 11% YoY from ₹188.91 lakh. Revenue from operations fell 11% to ₹8652.86 lakh. While material costs and other expenses decreased, the revenue contraction drove the profit decline. Statutory auditors Nahta Jain & Associates issued a limited review report on the results approved by the Board on July 28, 2026.
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Aarnav Fashions reported a net profit of ₹168.10 lakh for the quarter ended June 30, 2026, a 11% decline from the ₹188.91 lakh earned in the same period last year. The Ahmedabad-based textile manufacturer saw revenue from operations drop 11% year-on-year (YoY) to ₹8652.86 lakh, reflecting softer demand or pricing pressures in its core segment. While the company managed to reduce cost of materials consumed, this benefit was offset by sustained finance costs and other expenses, squeezing margins in the opening quarter of FY27.
The Board of Directors approved the unaudited financial results and the limited review report issued by statutory auditors Nahta Jain & Associates during a meeting held on July 28, 2026. The filing was submitted in compliance with Regulation 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The results were prepared in accordance with Indian Accounting Standard 34 (Ind AS 34) and reviewed under Standard on Review Engagements (SRE) 2410.
Financial Performance Highlights
| Metric | Q1FY27 (₹ lakh) | Q1FY26 (₹ lakh) | Change |
|---|---|---|---|
| Revenue from operations | 8652.86 | 9715.80 | -11% |
| Other Income | 7.80 | 8.20 | -5% |
| Total Income | 8660.66 | 9724.00 | -11% |
| Total Expenses | 8435.06 | 9471.59 | -11% |
| Net Profit | 168.10 | 188.91 | -11% |
| EPS (Basic) | ₹0.40 | ₹0.45 | -11% |
Revenue from operations declined to ₹8652.86 lakh from ₹9715.80 lakh in Q1FY26. Other income also saw a marginal dip to ₹7.80 lakh from ₹8.20 lakh. Total income for the quarter stood at ₹8660.66 lakh, compared to ₹9724.00 lakh in the corresponding period of the previous fiscal year.
Expense Breakdown
Cost of materials consumed decreased slightly to ₹6684.46 lakh from ₹6712.41 lakh, indicating better input cost management. However, purchases of stock-in-trade fell sharply to ₹156.40 lakh from ₹599.99 lakh, suggesting reduced inventory buildup. Employee benefits expense rose modestly to ₹226.82 lakh from ₹211.51 lakh. Finance costs increased marginally to ₹256.69 lakh from ₹251.67 lakh, while depreciation and amortization expense remained stable at ₹195.00 lakh. Other expenses declined significantly to ₹1420.76 lakh from ₹1894.08 lakh, contributing to the overall reduction in total expenses to ₹8435.06 lakh.
What the Numbers Show
The primary driver of the net profit decline is the contraction in revenue from operations, which outpaced the reduction in total expenses. Although other expenses dropped substantially, the 11% fall in top-line revenue directly impacted profitability. The profit before tax fell to ₹225.60 lakh from ₹252.41 lakh, with tax expenses reducing proportionally to ₹57.50 lakh (net of deferred tax benefits). The earnings per share (EPS) decreased to ₹0.40 from ₹0.45, signaling lower returns for shareholders in the quarter. The company operates primarily in the textiles sector, with no separate reportable segments as per Ind AS 108.
Historical Stock Returns for Aarnav Fashions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.04% | -0.70% | +27.13% | +12.07% | +12.07% | +12.07% |
How might Aarnav Fashions adjust its pricing strategy or product mix in Q2FY27 to counteract the current demand softness and restore revenue growth?
Given the sharp decline in stock-in-trade purchases, does this indicate a strategic inventory deleveraging that could lead to lower working capital requirements and improved cash flow?
With finance costs rising despite reduced inventory buildup, what specific debt restructuring measures or interest rate hedging strategies is the company considering to protect margins?
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