Arvind Fashions Limited (AFL) announced its financial results for the second quarter and half year ended September 30, 2026 (Q2 FY27). The company reported a 10.0% increase in revenue to Rs. 1,559 crore and a 15.5% growth in EBITDA to Rs. 216 crore for Q2 FY27. The results highlight strong performance driven by direct channel growth and improved gross margins.
Arvind Fashions Declares Strong Q2 FY27 Results
Arvind Fashions Limited (AFL), a leading player in India’s casual and denim market, has announced robust financial results for the second quarter and first half of the financial year 2027 (Q2 FY27) ended September 30, 2026. The company achieved its highest ever revenue and EBITDA, demonstrating strong growth momentum.
Key Financial Highlights (Q2 FY27)
In the second quarter of FY27, AFL’s revenue grew by approximately 10.0% year-on-year, reaching Rs. 1,559 crore compared to Rs. 1,418 crore in Q2 FY26. This growth was supported by a 15.4% increase in retail performance and higher marketing investments. Adjusted for festive shifts, the overall growth was around 15%.
EBITDA saw a significant increase of 15.5%, reaching Rs. 216 crore in Q2 FY27 from Rs. 187 crore in the prior year. The EBITDA margin improved by approximately 67 basis points to 13.9%. Profit After Tax (PAT) from continuing operations grew by 29.6% to Rs. 49 crore.
Channel Performance and Strategy
The direct channel played a pivotal role, contributing 53% of the company’s revenue, up by approximately 380 basis points year-on-year. Strong retail execution led to a like-to-like (LTL) growth of 7.3%, with an online B2C growth of around 28%. Gross margin expanded by 136 basis points to 53.9% due to a better channel mix and lower discounting.
The company emphasized its focus on strategic initiatives including expanding direct channels, accelerating store expansion by approximately 150 stores, and leveraging data analytics and AI to drive efficiency. Investments in marketing and brand building continue to be a priority.
Half-Yearly Performance (H1 FY27)
For the first half of FY27, revenue increased by 12.4% to Rs. 2,837 crore, while EBITDA grew by 17.2% to Rs. 376 crore. PAT from continuing operations for H1 FY27 stood at Rs. 59 crore.
Market and Economic Outlook
Arvind Fashions expressed a cautious outlook, acknowledging external macro-economic factors such as inflation, geopolitical developments, and potential El Nino effects. However, the company remains confident in sustaining its growth trajectory by focusing on profitable growth, deepening consumer engagement, and increasing the share of direct channels.
Source: BSE
