Arvind Fashions Ltd. (AFL) announced strong Q3 FY26 results, with revenue growth of 14.5% and EBITDA growth of 18%. Key highlights include consistent revenue growth driven by direct channels, strong retail LTL growth, improved gross margins, and significant PAT growth. The company continues to focus on strengthening its direct channel strategy and expanding its retail footprint to build long-term value.
Key Financial Highlights
Arvind Fashions Ltd. (AFL) reported a robust performance for Q3 FY26, demonstrating significant growth across key financial metrics. Revenues increased by 14.5% to Rs. 1,377 Crs, compared to Rs. 1203 Crs in Q3 FY25, driven by strong performance in direct channels. EBITDA (excluding other income) grew by 18% to Rs. 195 Crs, up from Rs. 165 Crs in the same quarter last year.
Direct Channel and Margin Improvement
The company’s focus on direct channels has resulted in strong retail LTL growth of 8.2% and approximately 50% growth in the online B2C channel. Furthermore, gross margins expanded by 50 bps to 55.4%, supported by a richer channel mix and improvements in the cost of goods sold (COGS).
Profitability and Future Outlook
PAT (from continuing operations and excluding Code on Wages impact) reached Rs. 44 Crs, showcasing an impressive growth of 65.2%. Reported PAT stood at Rs. 26 Crs, compared to Rs. 28 Crs in Q3 FY25. The company remains focused on accelerating growth by strengthening its direct channel strategy, expanding its retail footprint, driving premiumization, and scaling adjacent categories.
Management Commentary
According to Ms. Amisha Jain, MD & CEO, Q3 FY26 marked another strong quarter, driven by consistent execution across direct-to-consumer channels, delivering robust LTL growth and sustaining double-digit secondary growth in wholesale. The focus remains on strengthening direct channels and expanding retail footprint.
Source: BSE
