Arvind Fashions Reports Strong Financial Results for Q4 FY26, Posts 14% Revenue Growth

Arvind Fashions Reports Strong Financial Results for Q4 FY26, Posts 14% Revenue Growth

Arvind Fashions Reports Strong Financial Results for Q4 FY26, Posts 14% Revenue Growth​

Arvind Fashions Limited (AFL), India's leading casual and denim player, has announced its financial results for the fourth quarter and the fiscal year ended March 31, 2026. The company reported robust growth across its channels, delivering strong sales performance and achieving a significant increase in profit after tax (PAT).

The Board of Directors of the Company, at its meeting held on May 06, 2026, approved the audited financial statements for the financial year ended March 31, 2026, and the results for the fourth quarter, confirming the company's strong performance momentum.

Financial Performance Highlights​

The company delivered strong revenue growth, posting Total Income of 1,372 Crores for the fourth quarter of FY26, compared to 1,200 Crores in Q4 FY25.

Over the full fiscal year, AFL registered a revenue growth of 14.0% to 5,266 Crores, up from 4,620 Crores in FY25. The Profit After Tax (PAT) soared to 124 Crores, compared to a loss of -34 Crores in the previous fiscal year.

Key financial metrics for Q4 FY26 and FY26 are detailed below:

Metric (₹ in Crores)Q4 FY26Q4 FY25Q-o-Q GrowthFY 26FY 25Y-o-Y Growth
Revenues from Operations1,3651,18914.8%5,2664,62014.0%
Total Income1,3721,200-5,3074,654-
EBITDA Excl. Other Income18915919.2%70560217.0%
PAT (Reported)47-93-123-36-

(Note: Growth rates are approximate based on provided data and exclude the impact of the Code on Wages.)

The company also achieved a milestone of Return on Capital Employed (ROCE) of 23.5%, marking an increase of more than 300 basis points year over year.

Operational Growth Drivers​

The strong financial performance was attributed to robust operational execution and shifts in consumer buying patterns.

In Q4 FY26, revenue growth was supported by a sharp increase in retail performance (LTL growth of 7.8%) and significant expansion in the online direct-to-consumer business, which grew 42% Year over Year.

For the full fiscal year, the company reported:

  • Revenue Growth: Strong revenue growth of 14% was driven by growth across direct channels.
  • Gross Margins: Gross margins improved by 91 basis points to 54.4% due to a richer channel mix, discount reduction, and sourcing gains.
  • Direct Channel Outperformance: Direct channels continued to outperform, ensuring consistent growth and better inventory control.

Governance and Future Outlook​

The Board of Directors of Arvind Fashions Limited recommended a final dividend of Rs. 1.60 per equity share of face value of Rs. 4 each for the financial year ended March 31, 2026, subject to the approval of the shareholders at the Annual General Meeting.

Commenting on the results, Ms. Amisha Jain, MD & CEO, stated that the FY26 results reflect the "quality, consistency, and compounding strength of the company's earnings trajectory."

Looking ahead, the company plans to accelerate growth by focusing on:

1. Brand Expansion: Continuing investments in marquee brands and expanding into adjacent categories.
2. Channel Strategy: Driving the business through direct channels (retail and online B2C) to improve inventory control.
3. Efficiency: Sustaining capital efficiency through working capital control and focusing on accelerating retail expansion using an asset-light approach.

The company also reported that the overall Net Working Capital remained stable, with inventory turns at a healthy rate.

Corporate Governance Updates​

At its board meeting on May 06, 2026, the company approved the re-appointment of M/S Deloitte Haskins & Sells, Chartered Accountants, as the Statutory Auditors for the second term of five consecutive years. Furthermore, M/S. Mahajan & Aibara Chartered Accountants LLP was re-appointed as the Internal Auditors for the Financial Year 2026-27.

ARVINDFASN Stock Price Movement​

Shares of Arvind Fashions Limited are edging higher to ₹464.65 as of 12:30 PM today, gaining 6.50% in active live trading. The stock is seeing high interest, supported by trading volume of 444,632 shares as investors drive up the equity price.
 

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