Arvind Fashions Limited (AFL) announced robust Q3 FY26 results with revenue growth of 14.5% and EBITDA growth of 18%. The company saw strong LTL growth of 8.2% in retail and 50% growth in the direct online channel. AFL also reacquired a 31.25% stake in AYBPL, reinforcing Flying Machine’s position in the youth fashion market. They are confident in maintaining a double-digit growth trajectory.
Financial Performance Highlights
Arvind Fashions Limited reported a strong Q3 FY26, demonstrating consistent execution across direct-to-consumer channels. Key highlights include:
- Revenue growth of 14.5%.
- Like-for-like growth of 8.2% in the retail channel.
- Approximately 50% growth in the direct online channel.
- EBITDA reached INR195 crores compared to INR165 crores in the previous year.
- Adjusted PAT grew by 65%, reflecting strong operating leverage.
Channel Growth
The company continues to expand its direct channels, which now account for nearly 63% of sales. Retail growth showed double-digit gains, with a like-for-like growth of 8.2%. Online B2C sales grew by nearly 50%, contributing to 17% of total sales with improved channel margin.
Flying Machine Acquisition and Strategy
During the quarter, Arvind Fashions reacquired Flipkart’s stake in Flying Machine. The brand is envisioned to operate as a Gen Z-focused unisex fashion brand anchored in denim. Flying Machine will launch its dedicated D2C platform in fiscal ’27, aiming to build community and cultural relevance with Gen Z consumers. In Q3, Flying Machine saw 17% like-for-like growth and 40% growth in B2C channels, with department stores growing by around 35%.
Brand Performance
U.S. Polo continued its momentum, growing exceptionally at over 25%, driven by execution across consumer touchpoints. Adjacent categories grew at 23%, predominantly led by footwear. Inventory freshness is at an all-time high, and gross margin has improved by 50 basis points.
Outlook and Expansion
Arvind Fashions is reasonably confident of maintaining its growth rate and plans to continue store expansion, aiming to achieve a net square feet addition of 1.5 lakh square feet for the year. The company anticipates government initiatives to aid higher consumer disposable incomes, leading to increased demand across categories.
Source: BSE
