Arvind Fashions Limited delivered broad-based and profitable growth in FY26, with consolidated revenue from operations rising 14% year-on-year to ₹5,266.19 crore. The performance was supported by consistent retail execution, accelerated online B2C growth, expanding adjacent categories and continued improvement in capital efficiency. Reported profit after tax stood at ₹122.6 crore, compared to a reported loss of ₹35.6 crore in FY25, marking a meaningful turnaround for the Company.

Key Financial Highlights — FY26 vs FY25

The following table summarises the Company's consolidated financial performance for FY26 compared to FY25:

Operational Performance

Retail remained a critical growth driver during FY26. The Company delivered consistent retail like-for-like growth of 8.1% for the year, supported by superior execution, strong product freshness and improved in-store experience. Net retail area addition for the year was approximately 1.43 lakh square feet, representing a meaningful acceleration from the approximately 1.22 lakh square feet added in FY25. As of March 2026, the Company's EBO count stood at 1,025, with the retail footprint reaching approximately 13.37 lakh square feet. The retail estate is distributed across 475+ cities and towns.

Online B2C continued to be one of the Company's strongest growth engines, with revenue growing 45% during FY26. The Company's D2C contribution reached 56% of total sales, up 270 basis points year-on-year. The channel mix showed online B2C at 14% of revenue, compared with 11% in FY25, reflecting the strategic shift from less-controlled online B2B towards more direct consumer access.

Brand Portfolio and Adjacent Categories

The Company's five-brand portfolio — U.S. Polo Assn., Tommy Hilfiger, Calvin Klein, Arrow and Flying Machine — continued to drive market share across premium, mid-premium and youth fashion segments. U.S. Polo Assn. strengthened its position as India's leading casual lifestyle brand with momentum across apparel, adjacencies, retail and digital. Tommy Hilfiger and Calvin Klein continued to benefit from India's premiumisation journey, while Arrow focused on product innovation for the evolving professional consumer. Flying Machine was repositioned as a Gen Z-focused, denim-anchored youth brand.

Adjacent categories contributed 24% of the Company's business in FY26, with footwear, innerwear, womenswear and kidswear delivering strong growth momentum. Adjacent categories grew at 18%+ during the year. These categories allow the Company to increase share of wallet and build broader lifestyle propositions around its strongest brands.

Working Capital and Capital Efficiency

As of March 31, 2026, net working capital stood at ₹969 crore, compared with ₹817 crore in the previous year. Inventory stood at ₹1,605 crore, trade receivables at ₹752 crore, and trade payables and credits at ₹1,387 crore. Net working capital days stood at 64 days, while inventory days increased to 102 days, reflecting the higher share of direct channels and strategic investment in inventory. Inventory turns remained healthy at approximately 3.6x. Capital employed stood at ₹1,692 crore. ROCE crossed 23%, an important milestone reflecting the quality of growth and improving capital discipline.

Leadership Transition and Dividend

FY26 marked a significant leadership transition for the Company. Amisha Jain was appointed as Managing Director and CEO effective August 13, 2025, succeeding Shailesh Chaturvedi who resigned effective September 30, 2025. During the year, the Company also articulated a refreshed Vision, Mission, Values and Ways of Working framework. The Board of Directors recommended a final dividend of ₹1.60 per fully paid-up equity share of face value ₹4 each for FY26, subject to shareholder approval. The dividend, if approved, would involve a cash outflow of approximately ₹21.38 crore. The 11th Annual General Meeting is scheduled for August 19, 2026.

Sustainability and Governance

The Company continued to embed sustainability across its operations during FY26. The Hoskote warehouse facility received the Platinum certification from the Indian Green Building Council (IGBC). The Company transitioned to 100% compostable polybags, 100% recycled polyester garment labels and 50% FSC-certified hangtags. A solar power wheeling agreement covering 80%-95% of the corporate office's energy demand has the potential to mitigate approximately 1,030 tonnes of carbon dioxide annually. On the governance front, CARE Ratings Limited reaffirmed the Company's rating at CARE A, Positive/CARE A1 on January 8, 2026. The Secretarial Audit Report for FY26 does not contain any qualifications, reservations or adverse remarks.

Arvind Fashions Limited has released its Business Responsibility & Sustainability Report (BRSR) for the financial year 2025-26, providing a comprehensive overview of its environmental, social, and governance (ESG) performance on a consolidated basis. The filing underscores the company’s commitment to sustainable retail operations, highlighting advancements in green infrastructure, responsible sourcing, and employee welfare across its national footprint.

The report covers the entity’s core business activities, which account for 100% of turnover through the wholesale and retail trading of ready-made garments and accessories. Wholesale trading of fashion brands contributes 55% of total turnover, while retail trading accounts for 45%. Arvind Fashions operates from seven locations, including its head office in Bangalore and regional offices in Gurgaon, Mumbai, and Kolkata, serving 28 states and 8 union territories in India, along with 12 international markets. Exports constitute 0.72% of total turnover.

Operational and Financial Overview

As per the disclosures, Arvind Fashions maintains a paid-up capital of ₹53.46 Crores. The company’s consolidated net worth stands at ₹943.64 Crores, while standalone net worth is reported at ₹2,327.81 Crores. Consolidated turnover is recorded at ₹5,266.8419 Crores, with standalone turnover at ₹710.86 Crores. Corporate Social Responsibility (CSR) is applicable under Section 135 of the Companies Act, 2013.

The workforce comprises 7,741 individuals, including 1,092 permanent employees and 6,649 non-permanent employees. Women represent 20% of the total employee base. The Board of Directors includes 18% female representation, while Key Management Personnel (KMP) features 67% female participation. Turnover rates for permanent employees decreased to 18.6% in FY2025-26, down from 22.3% in the previous year.

Sustainability and Environmental Initiatives

Arvind Fashions has intensified its focus on circularity and resource efficiency. The company has transitioned to 100% compostable polybags and utilizes recycled polyester for 100% of product labels. Additionally, 50% of thread volume consists of recycled polyester, and 20% of shopping bags are made from textile waste recycle. The Hoskote warehouse achieved Platinum certification from the Indian Green Building Council (IGBC), reflecting excellence in sustainable design.

Energy consumption data reveals a shift towards renewable sources. Total energy consumed was 8,829 GJ, with 437 GJ derived from renewable sources. Scope 1 and Scope 2 greenhouse gas emissions totaled 1,591.6 metric tons of CO2 equivalent. The company avoided approximately 86 tCO₂e emissions by consuming 1,21,412 units of solar power at its FCONSO warehouse. Water withdrawal increased to 9,953.3 kilolitres, primarily for domestic use, with no industrial wastewater generated.

Governance and Stakeholder Engagement

The report details robust governance frameworks, including an Enterprise Risk Management Committee chaired by a Non-Independent, Non-Executive Director. All nine principles of the National Guidelines on Responsible Business Conduct (NGRBC) are covered by board-approved policies. No monetary or non-monetary penalties were reported against directors or KMPs during the year.

Stakeholder engagement remains active, with 1,10,959 customer complaints received, of which 303 were pending resolution at year-end. Shareholder complaints numbered 16, with only one pending. The company emphasizes ethical conduct through anti-bribery and conflict-of-interest policies, reporting zero complaints related to these areas. Procurement from MSMEs and small producers rose to 46%, up from 38% in the prior year, reinforcing inclusive growth strategies.