Arvind Fashions Reports Strong Revenue Growth in Q1 FY27; EBITDA Rises 19.6%
Arvind Fashions Limited (AFL), recognized as India's leading casual and denim player, announced its unaudited consolidated and standalone financial results for the first quarter of fiscal year 2027, which ended on June 30, 2026. The company reported robust revenue growth while significantly improving its EBITDA margin amid a challenging economic landscape.The Q1 performance saw revenues grow by approximately 15.5%, reaching Rs. 1,279 Crore from Rs. 1,107 Crore in the corresponding quarter of FY26. This expansion was partly attributed to increased marketing investments and a strategic focus on direct channels, which contributed 62% of the company's total revenue.
Operational efficiency remained high, with the company achieving a gross margin expansion of 90 basis points (bps) to reach 56.7%. Consequently, EBITDA (excluding other income) grew by approximately 19.6%, climbing to Rs. 160 Crore from Rs. 133 Crore in Q1 FY26. This improvement saw the company's EBITDA margin increase by roughly 44 bps, settling at 12.5%.
The company reported Profit After Tax (PAT) of Rs. 10 Crore in the quarter, which was a dip compared to the Rs. 13 Crore recorded in Q1 FY26, attributed to lower other income. Furthermore, operational metrics showed continued health; L2L growth stood at 11.6%, while online B2C segment witnessed a nearly 38% surge. Inventory freshness was reported as being at an all-time high, and Net Working Capital (NWC) days remained stable at 65 days.
The consolidated financial performance for the quarter is summarized below:
| Financial Metric | Q1 FY27 (Rs. Crore) | Q1 FY26 (Rs. Crore) | Year-on-Year Growth |
|---|---|---|---|
| Revenues | 1,279 | 1,107 | 15.5% |
| EBITDA | 160 | 133 | 19.6% |
| PBT | 40 | 39 | 3.1% |
| PAT | 10 | 13 | -22.2% |
Commenting on the results, Ms. Amisha Jain, MD and CEO of Arvind Fashions Limited, noted that the company commenced the year with strong operating performance, highlighting the 15.5% revenue growth and 19.6% EBITDA increase. She attributed this resilience to the brand portfolio and operational discipline despite facing intense inflationary pressures from factors such as the West Asia conflict, elevated forex rates, high petroleum prices, and minimum wage increases across various states.
Looking ahead, the company plans to accelerate profitable growth through increased brand investments and deepening consumer engagement, while maintaining a keen focus on its direct channels and retail B2C channels.
ARVINDFASN Stock Price Movement
As of 12:40 PM, shares of Arvind Fashions Limited are slipping by 1.89% in live trading, currently resting at ₹465.80. The stock has seen a volume of 971,551 shares traded so far today.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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