Arvind Fashions Reports Robust Q1 FY26 Performance with 16% Revenue Growth

2 min read     Updated on 28 Jul 2025, 08:50 PM
scanxBy ScanX News Team
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Overview

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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*this image is generated using AI for illustrative purposes only.

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.

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Arvind Fashions Eyes 12-15% Revenue Growth in FY26, Reports Strong Q1 Performance

2 min read     Updated on 28 Jul 2025, 07:40 PM
scanxBy ScanX News Team
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Overview

Arvind Fashions Limited (AFL) expects 12-15% revenue growth in FY26, driven by retail network expansion, product category growth, and strengthened direct sales channels. Q1 FY26 showed strong performance with revenue up 16% to ₹1,107 crore, EBITDA up 20.3% to ₹148 crore, and multi-fold PAT growth to ₹13 crore. Retail channel grew ~15%, online B2C over 30%, and wholesale over 10% year-on-year. The company added 29 Exclusive Brand Outlets, reaching 12.32 lakh square feet of retail space. AFL plans to accelerate retail expansion, scale existing brands, control working capital, and increase marketing investments.

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*this image is generated using AI for illustrative purposes only.

Arvind Fashions Limited (AFL), a leading player in India's casual and denim market, has set its sights on robust growth for the fiscal year 2026. The company projects a 12-15% increase in revenue, underpinned by strategic expansion plans and strong performance across various channels.

Growth Drivers

The projected revenue growth is attributed to three key factors:

  1. Expansion of retail network
  2. Growth in related product categories
  3. Strengthening of direct sales channels

This growth strategy aligns with AFL's recent financial performance, which has shown promising results.

Q1 FY26 Performance Highlights

AFL has reported a strong start to the fiscal year, with impressive growth across key financial metrics for the first quarter ended June 30, 2025:

Metric Q1 FY26 Q1 FY25 Growth
Revenue ₹1,107.00 ₹955.00 16.00%
EBITDA ₹148.00 ₹123.00 20.30%
PAT ₹13.00 ₹1.00 Multi-fold

Channel Performance

The company's focus on direct channels has yielded positive results:

  • Retail channel: Achieved ~15% growth with a strong Like-for-Like (LTL) growth of 8.1%
  • Online B2C business: Experienced over 30% year-on-year growth
  • Wholesale channel: Recorded more than 10% year-on-year growth

Operational Efficiency

AFL has maintained operational efficiency while driving growth:

  • Gross margins expanded by 60 basis points to 55.9%, aided by lower consumer discounting
  • EBITDA margin improved by 50 basis points to 13.4%, despite a 140 basis points increase in advertising spend
  • Inventory turns remained stable at approximately 4x
  • Net Working Capital (NWC) days stayed consistent at 59 days

Expansion and Brand Strategy

The company continues to focus on expanding its retail presence and strengthening its brand portfolio:

  • Added 29 Exclusive Brand Outlets (EBOs) during the quarter
  • Total retail space reached approximately 12.32 lakh square feet
  • Adjacent categories witnessed over 20% growth

Management Commentary

Shailesh Chaturvedi, Managing Director & CEO of Arvind Fashions, commented on the company's 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."

Looking ahead, Chaturvedi added, "Moving forward, we will continue to focus on our direct channel strategy, resulting in higher bottom-line & ROCE (Return on Capital Employed)."

Future Outlook

As Arvind Fashions aims for 12-15% revenue growth in FY26, the company plans to:

  • Accelerate retail network expansion across brands through an asset-light approach
  • Continue scaling existing brands, including adjacent categories
  • Maintain focus on working capital control and free cash flow generation
  • Improve profitability through operating leverage and better channel mix
  • Sustain higher marketing investments for improved brand visibility and consumer connect

With its strong Q1 performance and strategic growth initiatives, Arvind Fashions appears well-positioned to achieve its ambitious revenue targets for FY26, solidifying its standing in India's competitive fashion retail landscape.

Historical Stock Returns for Arvind Fashions

1 Day5 Days1 Month6 Months1 Year5 Years
+0.52%+12.01%+16.12%+13.39%+7.88%+373.94%
Arvind Fashions
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