Arvind Fashions Limited reported robust Q3 FY26 results, demonstrating a 14.5% year-over-year revenue increase. Key drivers included strong performance in direct channels and strategic brand management. The company’s EBITDA grew by 18% to ₹195 crores, and it is focused on profitability improvement through operating leverage and channel optimization. The company also continues to expand its retail network and invest in marketing for better brand visibility and consumer engagement.
Q3 FY26 Business Highlights
Arvind Fashions Limited (AFL) reported strong Q3 FY26 results characterized by:
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Revenue growth of 14.5% year-over-year, driven by direct channels.
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Retail like-for-like (LTL) growth of 8.2%.
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EBITDA growth of 18% year-over-year to ₹195 crores, with a 40 bps higher margin.
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Online direct-to-consumer business growth of approximately 50% year-over-year.
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Gross addition of 43 Exclusive Brand Outlets (EBOs), bringing the net square footage to approximately 13.07L.
Financial Performance
The company’s financial performance in Q3 FY26 demonstrates continued profitability improvement. Key figures include:
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Revenue from operations: ₹1377 crores compared to ₹1203 crores in Q3 FY25.
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EBITDA: ₹201 crores compared to ₹174 crores in Q3 FY25.
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Profit Before Tax (PBT) before Code on Wages impact: ₹83 crores compared to ₹69 crores in Q3 FY25.
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Profit After Tax (PAT): ₹26 crores in Q3 FY26
YTD FY26 Performance
The company also reported strong Year-to-Date (YTD) performance for FY26:
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Revenue from operations: ₹3901 crores compared to ₹3431 crores in YTD FY25.
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EBITDA: ₹549 crores compared to ₹467 crores in YTD FY25.
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PBT before Code on Wages impact: ₹209 crores compared to ₹159 crores in YTD FY25.
Channel Mix
The channel mix for Q3 FY26 showcases a significant contribution from retail, which accounts for 46%, followed by Wholesale (MBO + Dept. Stores) at 27%. Online B2C contributes 17%, and Online B2B and others contribute 11%.
Strategic Initiatives and Future Outlook
AFL remains focused on:
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Profitability improvement led by operating leverage and better channel mix.
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Acceleration in retail network expansion across brands through an asset-light approach.
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Higher marketing investments for better visibility and consumer connect.
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Working capital control and free cash flow (FCF) generation leading to higher Return on Capital Employed (ROCE).
Source: BSE
