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.

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:

Key Performance Drivers

1. 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.

2. Gross Margin Expansion: Gross margins improved by 210 basis points to 52.5%, attributed to a richer channel mix and reduced consumer discounting.

3. 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.

4. Adjacent Categories: The company witnessed over 20% growth in adjacent product categories, contributing to overall revenue growth.

5. 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:

1. Positive demand environment and ongoing investments in growth drivers
2. Acceleration of retail network expansion across brands through an asset-light approach
3. Commitment to scaling existing brands and adjacent categories
4. Focus on working capital control and free cash flow generation to improve return on capital employed (ROCE)
5. Continued emphasis on profitability improvement through operating leverage and better channel mix
6. 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.