Arvind Fashions Limited delivered a robust financial performance for the year ended March 31, 2026, achieving 14% revenue growth for the full year and 14.8% growth in the fourth quarter. The company reported a 56% increase in PAT for Q4 and a 62% increase for FY ’26 on a comparable basis, driven by consistent execution across direct-to-consumer channels and a strong return on capital employed, which has now crossed 23%.
Financial Highlights and Growth
For the quarter and full year ended March 31, 2026, Arvind Fashions Limited maintained a strong upward trajectory. Q4 revenue reached INR 1,365 crores, up from INR 1,189 crores in the previous year. Profitability saw a significant boost, with EBITDA margins expanding by 50 basis points in Q4 and 40 basis points for the full fiscal year. The company’s Return on Capital Employed (ROCE) surpassed the 23% milestone, marking a multi-year high.
Strategic Growth Pillars
The company’s growth was supported by its direct-to-consumer (D2C) engine, which now accounts for 56% of total sales, representing a 300 basis point year-on-year improvement. Online B2C channels recorded 40% growth during the fourth quarter. Management highlighted a commitment to five strategic pillars: portfolio diversification in menswear, building differentiated brands, scaling the D2C organization, accelerating digital and AI transformation, and maintaining a nimble supply chain.
Brand and Operational Performance
U.S. Polo remained a standout performer, achieving its highest-ever growth this quarter. Additionally, Flying Machine received special mention for its successful repositioning as an on-trend, unisex denim-anchored youth brand, which yielded double-digit retail LTL growth and 70% B2C growth. Other categories, including footwear and innerwear, continued to serve as meaningful growth drivers, now contributing 24% to the total business.
Outlook for FY 2027
Entering the new fiscal year, the company remains optimistic, guiding for mid-double-digit growth and an additional 30 to 40 basis points of EBITDA margin expansion. Despite potential macroeconomic uncertainties and inflationary pressures, the company plans to focus on cost control measures, selective price increases, and continued expansion of its retail footprint by approximately 1.5 lakh net square feet.
Source: BSE
