Arvind Fashions Limited (AFL) reported strong financial results for Q3 FY26, with revenue increasing by 14.5% to ₹1,377 crore. The growth was driven by direct channels, with retail LTL growth of 8.2% and online B2C growth of nearly 50%. EBITDA grew by 18% to ₹195 crore, and PAT (excluding Code on Wages impact) grew by 65.2% to ₹44 crore. The company is focused on strengthening its direct channel strategy and expanding its retail footprint.
Q3 FY26 Performance Highlights
Arvind Fashions Limited (AFL) has announced its financial results for the third quarter of fiscal year 2026, showcasing a strong growth trajectory. Key highlights from the announcement include:
- Revenue Growth: Overall revenue increased by 14.5%, reaching ₹1,377 crore, compared to ₹1203 crore in Q3 FY25.
- Direct Channel Focus: Continued focus on direct channels resulted in strong retail LTL growth of 8.2% and nearly 50% growth in online B2C channel.
- EBITDA Improvement: EBITDA (excluding other income) grew by 18% to ₹195 crore from ₹165 crore in Q3 FY25. EBITDA margin improved by 40 bps to 14.2%.
- Profitability Surge: PAT (from continuing operations & excluding Code on Wages impact) stood at ₹44 crore, reflecting a growth of 65.2%.
Channel-Wise Performance
The company’s performance across various channels is noteworthy:
- Retail Channel: Experienced approximately 11% growth, driven by strong LTL performance and improved stock freshness.
- Online Direct-to-Consumer (D2C): The online D2C business grew by nearly 50% year-over-year.
- Wholesale Channels: Witnessed double-digit growth in consumer sales.
Strategic Developments
- EBO Expansion: The company added 43 new EBOs, bringing the total net square footage to approximately 13.07L.
- AYBPL Acquisition: Arvind Fashions completed the acquisition of Flipkart’s stake in Arvind Youth Brands Private Limited (AYBPL) on December 29, 2025, for ₹135.00 crore.
Future Outlook
Arvind Fashions aims to continue its growth trajectory by focusing on its direct channel strategy, expanding its retail footprint, and driving premiumization. The company is committed to delivering consistent double-digit revenue growth and achieving higher ROE through working capital control and free cash flow generation.
Source: BSE
