Arvind Fashions Limited reported a robust performance for the financial year ending March 31, 2026. The company achieved a strong 14% revenue growth, driven by the outperformance of its direct-to-consumer channels. Operational efficiencies and a strategic focus on premiumization led to a 62% growth in profit after tax (before exceptional items) compared to the previous year, with EBITDA reaching ₹705 crore.
Financial Highlights
For the full financial year 2026, Arvind Fashions reported a revenue of ₹5,266 crore, marking a 14% increase over FY25. Profitability also saw significant improvements, with annual EBITDA rising to ₹705 crore, reflecting a 17% growth compared to the previous year. The company successfully expanded its EBITDA margins by 40 basis points, aided by favorable gross margin expansion.
Quarterly Performance
In the fourth quarter (January-March 2026), revenue stood at ₹1,365 crore, representing a 14.8% year-on-year growth. Quarterly EBITDA grew by 19% to ₹189 crore. Direct-to-consumer channels remained a key growth engine, with the online B2C business recording a 42% year-on-year growth in Q4.
Strategic Growth Drivers
The company continues to leverage its direct-to-consumer strategy, which has significantly improved inventory freshness and market share. Store expansion remains a priority, with a gross addition of 50 EBOs in the fourth quarter alone. The management has set ambitious objectives for the upcoming year, aiming for revenue growth between 12-15% and continued margin expansion through operating leverage.
Navigating Market Dynamics
Despite inflationary pressures stemming from global geo-political volatility, Arvind Fashions remains resilient by emphasizing cost control measures, hedging strategies for raw materials, and strengthening its domestic sourcing capabilities. The company is committed to scaling its existing brand portfolio, including expanding into adjacent categories, and maintaining an asset-light expansion model to improve overall return on capital employed (ROCE).
Source: BSE
