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.

Arvind Fashions Limited , a prominent player in the Indian fashion retail sector, has announced a significant change in its senior management. Mallikarjuna Reddy Yarabolu, the company's Chief Revenue Officer, has submitted his resignation, citing personal reasons.

Key Details of the Resignation

Corporate Disclosure and Compliance

Arvind Fashions Limited has promptly disclosed this development to the stock exchanges, adhering to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company's disclosure includes:

1. A formal announcement of the resignation
2. The effective date of cessation
3. Yarabolu's designation as a Senior Management Personnel under SEBI regulations

Resignation Process and Acknowledgment

Yarabolu addressed his resignation letter to Amisha Jain, the Managing Director and CEO of Arvind Fashions Limited. In his letter, he expressed gratitude to the senior management and his colleagues for their support during his tenure with the company.

Impact and Next Steps

While the departure of a senior executive can potentially impact a company's operations, Arvind Fashions has not provided any immediate information regarding a successor or the transition plan for the Chief Revenue Officer role. Stakeholders and investors will likely be keen to see how the company manages this transition and any potential effects on its revenue strategies going forward.

As this development unfolds, it will be important to monitor any further announcements from Arvind Fashions regarding their plans to fill this crucial position and maintain their revenue growth trajectory.