Arvind Fashions Reports Robust Q2 FY26 Results with 11.3% Revenue Growth

Arvind Fashions Limited (AFL), India's leading casual and denim player, has reported strong financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company demonstrated significant growth across key financial metrics, driven by its focus on direct channels and premium offerings.

Financial Highlights

AFL's performance for Q2 FY26 showed marked improvement compared to the same period last year:

Metric	Q2 FY26	Q2 FY25	Y-o-Y Growth
Revenue	₹1,418.00 Cr	₹1,273.00 Cr	11.30%
EBITDA	₹200.00 Cr	₹170.00 Cr	18.20%
EBITDA Margin	14.10%	13.30%	80 bps
PBT	₹87.00 Cr	₹67.00 Cr	31.20%
PAT	₹38.00 Cr	₹30.00 Cr	26.90%

Key Performance Drivers

Direct Channel Growth: The company's focus on direct channels resulted in an 8.3% like-to-like (LTL) growth in retail and over 50% growth in the online B2C channel.
Gross Margin Expansion: Gross margins improved by 210 basis points to 52.5%, attributed to a richer channel mix and reduced consumer discounting.
Retail Expansion: AFL added 24 exclusive brand outlets (EBOs) during the quarter, bringing its total net square footage to approximately 12.67 lakh sq. ft.
Adjacent Categories: The company witnessed over 20% growth in adjacent product categories, contributing to overall revenue growth.
Working Capital Management: Inventory turns remained stable, with net working capital days maintained at 60 days.

Strategic Initiatives

Amisha Jain, MD & CEO of Arvind Fashions, commented on the company's performance: "In Q2 FY26, we sustained our strong growth trajectory with an 11.3% increase in revenue. The recent GST reforms are expected to further boost consumer confidence and spending. As we move forward, we remain focused on investing in our marquee brands and strengthening consumer connections through our direct channel strategy, while accelerating retail expansion, driving premiumisation and scaling adjacent categories – further, strengthening our portfolio and creating long-term value for our shareholders."

Brand Performance

U.S. Polo Assn.: Delivered strong growth across channels, benefiting from increased marketing investments and early festive season demand.
Arrow: Launched a new celebrity campaign featuring actors Vedang Raina and Khushi Kapoor, focusing on product innovation and accelerating EBO expansion.
Flying Machine: Showed robust performance in the retail channel and curated specific lines for department stores.
Tommy Hilfiger: Continued to benefit from strong brand pull and premiumization trends, with a focus on expanding retail and online presence.
Calvin Klein: Experienced growth in direct channels, driven by early festive season demand and premiumization trends.

Outlook

Arvind Fashions remains optimistic about its future performance, citing several factors that are likely to contribute to continued growth:

Positive demand environment and ongoing investments in growth drivers
Acceleration of retail network expansion across brands through an asset-light approach
Commitment to scaling existing brands and adjacent categories
Focus on working capital control and free cash flow generation to improve return on capital employed (ROCE)
Continued emphasis on profitability improvement through operating leverage and better channel mix
Sustained marketing investments to enhance brand visibility and consumer connect

The company's strategic focus on direct channels, premiumization, and efficient working capital management positions it well for sustained growth in the coming quarters, as it continues to strengthen its portfolio and create long-term value for shareholders.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.71%	+2.63%	-2.07%	+25.29%	-12.00%	+322.82%

Arvind Fashions Limited (AFL), India's leading casual wear and denim company, has announced a significant leadership transition. Amisha Jain has officially taken charge as the new Managing Director and Chief Executive Officer, succeeding Shailesh Chaturvedi, who stepped down from the role on September 30, 2025.

Smooth Transition in Leadership

The leadership change, which was part of a planned succession strategy approved by AFL's Board of Directors, was initially announced on July 16, 2025. Jain, who joined the company on August 13, 2025, brings over 25 years of experience across technology, consumer, and retail sectors to her new role.

Amisha Jain's Impressive Background

Jain's appointment aligns with AFL's strategic focus on strengthening operational excellence, brand equity, and digital transformation. Her extensive experience includes:

Managing Director & SVP of South Asia, Middle East, Africa, and Eastern Europe at Levi Strauss & Co.
CEO of Zivame, where she led a significant turnaround
Senior roles at Nike India and Arvind Group
Experience at McKinsey & Company and Motorola Inc.

Recognition and Achievements

Jain's leadership has been widely recognized in the industry:

Awarded the ET People-Focused CEO of the Year 2024
Named in the '40 under 40: India's Hottest Business Leaders 2015' by Economic Times
Recognized in 'India Inc's rising women business leaders 2015' by Spencer Stuart

Chaturvedi's Legacy

Under Shailesh Chaturvedi's leadership, Arvind Fashions navigated significant transformation and consolidation, positioning itself for sustainable profitability. Chaturvedi expressed satisfaction with his tenure, stating, "The last few years as the MD & CEO of AFL have been one of the most satisfying part of my over 30-year career in this industry."

Looking Ahead

Kulin Lalbhai, Vice Chairman and Non-Executive Director of Arvind Fashions Limited, expressed confidence in Jain's appointment: "As AFL prepares for launching itself into the next orbit of growth, we are delighted to welcome Amisha back to AFL. She has a strong understanding of the new age consumer & we believe she is rightly positioned to lead AFL in its future journey."

Jain herself expressed enthusiasm about her new role, saying, "I am thrilled to come back to AFL which is all set for an exciting growth journey ahead. I believe AFL is now ready to unlock the strength of its portfolio of market leading brands to its full potential."

About Arvind Fashions Limited

Arvind Fashions Ltd is India's leading casual and denim player, with a strong portfolio of fashion brands catering to consumers across various sub-categories and price points. The company's brand portfolio includes renowned names such as U.S. Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, and Flying Machine.

As Arvind Fashions enters this new chapter under Amisha Jain's leadership, the company looks poised to build on its strong foundation and drive further growth in India's dynamic fashion retail landscape.