Arvind Fashions Ends FY26 Strong With 14% Revenue Growth, PAT Jumps 62%
Arvind Fashions Limited reported a strong financial performance for FY26, driven by robust growth across direct channels, improved retail execution and higher full-price sell-throughs.
The company posted consolidated revenue of Rs 5,266 crore for FY26, registering a 14 percent growth over Rs 4,620 crore in FY25. The growth was supported by expansion in direct channels, store network additions, strong retail execution and 8.1 percent like-to-like (LTL) growth, along with healthy traction in online direct-to-consumer channels.
Gross margins improved by 91 basis points to 54.4 percent, aided by a richer channel mix, lower discounting and sourcing efficiencies.
EBITDA for FY26 increased 17 percent to Rs 705 crore compared to Rs 602 crore in the previous year, while EBITDA margin expanded 40 basis points to 13.4 percent.
The company reported a PAT of Rs 124 crore for FY26 against a loss of Rs 34 crore in FY25. PAT from continuing operations, excluding the impact of Code on Wages and deferred tax asset adjustments in Q4 FY25, rose 62 percent to Rs 139 crore from Rs 85 crore a year earlier.
For the fourth quarter ended March 31, 2026, Arvind Fashions reported revenue growth of 14.8 percent to Rs 1,365 crore compared to Rs 1,189 crore in Q4 FY25, supported by healthy 7.8 percent LTL growth and strong momentum in direct channels.
Quarterly EBITDA grew 19.2 percent to Rs 189 crore, while EBITDA margin improved 50 basis points to 13.9 percent. Gross margins expanded by 20 basis points to 54.1 percent due to higher full-price sales and reduced retail discounting.
PAT for Q4 FY26 stood at Rs 47 crore against a loss of Rs 93 crore in the corresponding quarter last year. PAT from continuing operations increased 56 percent to Rs 42 crore from Rs 27 crore in Q4 FY25.
The company also achieved its highest-ever inventory freshness levels, while net working capital days remained stable at 64 days. Return on Capital Employed (ROCE) improved to 23.5 percent, up by more than 300 basis points year-on-year.
The Board of Directors recommended a final dividend of Rs 1.60 per equity share of Rs 4 each for FY26, subject to shareholder approval at the upcoming AGM.
Commenting on the performance, Amisha Jain, MD & CEO said, “FY26 marked another strong year, with revenue growth of 14 percent and PAT growth of 62 percent, reflecting the quality, consistency and compounding strength of the company’s earnings trajectory.”
She added that the company will continue focusing on expanding its marquee brands into adjacent categories, increasing consumer engagement through higher brand investments and growing the share of direct channels while leveraging technology, AI and supply chain agility to drive long-term growth.
