Arvind Fashions (ARVINDFASN) investor relations material

Executive summary

• Q1 FY26 revenue grew 16% year-over-year to ₹1,107 crore, with EBITDA up 20% to ₹148 crore, driven by strong retail and online B2C performance and robust brand momentum.

• Direct retail and online B2C channels now comprise nearly 60% of revenue, with online direct-to-consumer business expanding over 30%.

• Leadership transition announced: Amisha Jain to become MD & CEO from August 2025, bringing digital and retail expertise.

• Aggressive marketing and store expansion, including 29 new EBOs in Q1, are supporting brand visibility and market share gains.

• Discontinued operations (Aeropostale and Ed Hardy) had a minor negative impact, but core apparel operations remain stable.

Financial highlights

• Net Sales Value for Q1 was ₹1,100.07 crore; consolidated revenue from operations reached ₹1,107.31 crore, up from ₹954.84 crore year-over-year.

• EBITDA reached ₹148 crore, up 20% year-over-year, with margin expansion despite higher advertising spend.

• PAT rose to ₹13 crore from ₹1 crore in Q1 last year, and consolidated net profit was ₹24.86 crore, rebounding from a loss in the previous quarter.

• Gross profit margin improved by 60 bps to nearly 56%, aided by reduced discounting and richer channel mix.

• ROCE crossed 20% for the first time, with continued focus on working capital efficiency.

Outlook and guidance

• Management targets 12–15% CAGR in the medium term, with direct channels leading expansion and continued double-digit revenue growth.

• Retail and B2C online channels are expected to grow at ~15%, while wholesale channels are projected to grow at high single digits.

• Aggressive marketing investments and retail network expansion will continue throughout FY26.

• Focus on profitability improvement through operating leverage and better channel mix.

• Discontinued loss-making brands and completed tax adjustments are expected to improve future profitability.