Arvind Fashions rallies after robust Q1 numbers

Arvind Fashions surged 7.72% to Rs 538.45 after the company posted a strong set of earnings for the first quarter of FY26.

The apparel and retail player reported a net profit (PAT) of Rs 13 crore in Q1 FY26, a nearly tenfold jump compared to Rs 1 crore in the same quarter last year. Revenues grew 16% year-on-year to Rs 1,107 crore, up from Rs 955 crore in Q1 FY25, supported by strong traction across channels.

A key driver of performance was continued growth in direct-to-consumer channels, with 8.1% like-to-like (LTL) sales growth and over 30% growth in online B2C. Gross margins expanded by 60 basis points to 55.9%, aided by lower discounting.

EBITDA rose 20.3% YoY to Rs 148 crore, with margins improving by 50 bps to 13.4%, despite a 140 basis points increase in advertising spend. Profit before tax (PBT) also saw a sharp rise of 64.6% YoY to Rs 39 crore in Q1 FY26.

Inventory efficiency remained healthy with turnover at approximately 4x, while net working capital (NWC) days were stable at 59 days, signalling operational discipline.

Shailesh Chaturvedi, MD & CEO said Q1 FY26 witnessed a bright start to this year with revenue growth reaching 16%. This is a testimony of our conscious efforts of investing in higher marketing to re-energize our industry leading brands leading to strong awareness and higher footfalls along with market share gains. Moving ahead, we will continue to focus on our direct channel strategy resulting in higher bottom-line & ROCE.

Arvind Fashions is India?s leading casual and denim brand. It offers a wide range of fashion options across different categories and price points. The company's portfolio includes popular international brands like U.S. Polo Assn., Tommy Hilfiger, Calvin Klein, and Arrow, as well as well-known indigenous brands such as Flying Machine.

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