Arvind Fashions Limited has announced the grant of 30,000 stock options to eligible employees under its Employee Stock Option Scheme-2025. The company's Nomination and Remuneration Committee (NRC) approved this grant through a circular resolution passed on December 10, 2025.

Stock Option Grant Details

The grant comprises 30,000 equity shares of ₹4.00 each, with an exercise price set at ₹484.00 per share. The scheme operates in full compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Vesting Schedule and Exercise Terms

The stock options will vest over a four-year period, with equal tranches vesting annually. Employees will have a three-year window from each vesting date to exercise their options.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has informed both BSE Limited and the National Stock Exchange of India about this grant, ensuring full transparency with stakeholders.

The Employee Stock Option Scheme-2025 represents Arvind Fashions' commitment to employee retention and motivation through equity participation. This grant allows eligible employees to benefit from the company's future growth and performance while aligning their interests with shareholders.

Arvind Fashions Limited (AFL) has reported a strong performance for the second quarter of fiscal year 2026, with double-digit growth in both revenue and EBITDA. The company's focus on direct channels, premium brands, and adjacent categories has contributed to its robust financial results.

Financial Highlights

• Net sales value increased by 11.3% year-over-year to INR 1,418.00 crore
• EBITDA grew by 18.2% to INR 200.00 crore, with an 80 basis points margin expansion
• Profit After Tax (PAT) rose to INR 37.00 crore, up from INR 30.00 crore in Q2 last year
• Profit Before Tax (PBT) growth of nearly 31%

Channel Performance

AFL's direct channels, including retail and online B2C, now account for nearly 50% of sales, a 5 percentage point increase from the previous year. Key highlights include:

• Retail growth of 14% with a healthy like-to-like growth of 8.3%
• Online B2C growth of over 50%
• Addition of over 36,000 square feet of retail space during the quarter

Brand Performance

U.S. Polo Assn. continued its strong performance with 21% growth, driven by advertising campaigns and new store openings. The company's premium brands, Tommy Hilfiger and Calvin Klein, also maintained growth momentum.

Adjacent Categories

AFL's strategy to diversify its portfolio is paying off, with adjacent categories showing significant growth:

• Overall adjacent categories grew by 22%
• Footwear segment grew by over 25%
• Women's wear emerging as a promising future growth driver

Operational Improvements

The company reported several operational improvements:

• Gross margins improved by 210 basis points to nearly 53%
• Inventory freshness reached an all-time high of over 85%
• Implementation of GST 2.0 reforms, passing benefits to consumers

Future Outlook

Amisha Jain, Managing Director and CEO of Arvind Fashions, expressed confidence in the company's growth trajectory: "We remain hopeful of continuing the growth momentum with a strong wedding calendar in H2 and several government initiatives to boost consumption."

The company plans to focus on:

1. Sharpening brand positioning and consumer communication
2. Enhancing product portfolios and pricing strategies
3. Implementing data-backed segmentation and marketing capabilities
4. Leveraging technology across the value chain

With a strong portfolio of five brands and a focus on premiumization, Arvind Fashions is well-positioned to capitalize on the growing demand for premium apparel and accessories in the Indian market.

Conclusion

Arvind Fashions' Q2 FY26 results demonstrate the company's ability to deliver consistent growth through its multi-pronged strategy. By focusing on direct channels, premium brands, and adjacent categories, AFL is setting the stage for sustained growth in the coming quarters.