Arvind Fashions Reports Robust Q1 FY26 Performance with 16% Revenue Growth
Arvind Fashions Limited (AFL) reported impressive Q1 FY26 results with revenue up 16% to ₹1,107.00 crores. EBITDA grew 20.3% to ₹148.00 crores, with margin improving to 13.4%. PAT increased significantly to ₹13.00 crores. Retail channel grew 15%, online B2C over 30%, and wholesale 10%+. The company added 29 Exclusive Brand Outlets, expanding retail presence. All brands performed well, with U.S. Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, and Flying Machine showing strong growth. AFL aims for 12-15% revenue growth in FY26, focusing on profitability, marketing, and expansion.

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Arvind Fashions Limited (AFL), India's leading casual and denim player, has reported a strong start to the fiscal year 2026, with impressive growth across key financial metrics for the first quarter ended June 30, 2025.
Revenue Surge and Channel Performance
The company witnessed a substantial 16% year-on-year increase in revenue, reaching ₹1,107.00 crores compared to ₹955.00 crores in Q1 FY25. This growth was driven by strong performance across all channels, with particular success in direct-to-consumer segments.
AFL's focus on direct channels yielded significant results:
- Retail channel grew by approximately 15%, supported by a robust Like-to-Like (LTL) growth of 8.1%
- Online B2C business experienced over 30% growth
- Wholesale channel rebounded with a 10%+ year-on-year increase
Profitability Improvements
The company's profitability metrics showed notable improvements:
- EBITDA grew by 20.3% to ₹148.00 crores, up from ₹123.00 crores in Q1 FY25
- EBITDA margin improved by 50 basis points to 13.4%, despite a 140 basis points increase in advertising spend
- Gross margins expanded by 60 basis points to 55.9%, aided by lower consumer discounting
- Profit After Tax (PAT) saw a multi-fold increase to ₹13.00 crores, compared to ₹1.00 crore in the same quarter last year
Operational Highlights
AFL continued to expand its retail presence:
- Gross addition of 29 Exclusive Brand Outlets (EBOs)
- Net square feet addition of approximately 38,000, bringing the total to about 12.32 lakh sq. ft.
- EBO count stood at 987 as of June 30, 2025
The company's adjacent categories witnessed over 20% growth, contributing to the overall revenue increase.
Working Capital Management
AFL maintained efficient working capital management:
- Inventory turns remained stable at approximately 4x
- Net Working Capital (NWC) days remained steady at 59 days
Management Commentary
Shailesh Chaturvedi, Managing Director & CEO of Arvind Fashions Limited, commented on the performance: "Q1 FY26 witnessed a bright start to this year with revenue growth reaching 16%. This is a testimony of our conscious efforts of investing in higher marketing to re-energize our industry-leading brands, leading to strong awareness and higher footfalls along with market share gains. Moving ahead, we will continue to focus on our direct channel strategy resulting in higher bottom-line & ROCE."
Brand Performance
The company reported strong performance across its brand portfolio:
- U.S. Polo Assn.: Significant investments in marketing yielded momentum across channels
- Arrow: Favorable trading dates and wedding calendar helped drive growth
- Tommy Hilfiger: Delivered strong LTL in retail channel and healthy growth in department stores
- Calvin Klein: Collaboration with Formula 1 led to strong brand awareness and high LTL growth
- Flying Machine: Premiumization trend helped deliver industry-leading sell-throughs and LTL growth
Future Outlook
Looking ahead, Arvind Fashions has set ambitious objectives for FY26:
- Aspiration to grow revenues at 12-15% with acceleration in adjacent categories growth
- Focus on profitability improvement led by operating leverage and better channel mix
- Continued investments in advertisement to drive market share gains
- Acceleration in retail network expansion across brands through an asset-light approach
- Commitment to scaling existing brands including adjacent categories
- Higher free cash flow generation through continued working capital efficiency
As Arvind Fashions Limited continues to navigate the evolving fashion retail landscape, its strong Q1 FY26 performance sets a positive tone for the rest of the fiscal year, with a clear strategy focused on direct channels, brand strengthening, and operational efficiency.
Historical Stock Returns for Arvind Fashions
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
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+0.52% | +12.01% | +16.12% | +13.39% | +7.88% | +373.94% |