Arvind Fashions (ARVINDFASN) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue grew 16% year-over-year to ₹1,107 crores, with EBITDA up 20% to ₹148 crores, driven by strong performance across all channels and brands, and supported by continued investments in marketing and store expansion.

• Direct channels (retail and online B2C) contributed nearly 60% of revenue, with digital business surpassing 25% share and online B2C growing over 30% year-over-year.

• Retail like-to-like sales grew 8.1%, and store network expanded with 29 new EBOs in Q1 FY26, reaching 987 outlets and net square footage addition.

• Leadership transition announced: Amisha Jain to become MD & CEO from August 13, 2025, with outgoing CEO credited for turnaround and profitable growth.

• Discontinued operations (Aeropostale and Ed Hardy) had a minor negative impact, with a net loss of ₹0.27 crore.

Financial highlights

• Q1 FY26 NSV reached ₹1,107 crores; EBITDA at ₹148 crores, up 20% year-over-year; PAT increased to ₹24.86 crores from ₹13.92 crores year-over-year.

• Gross profit margin improved by 60 bps to nearly 56%, with retail discounting reduced by 1.2%.

• EBITDA margin improved by 50 bps year-over-year, aided by operating leverage.

• Earnings per share (EPS) for continuing and discontinued operations was ₹0.94, compared to ₹0.10 year-over-year.

• Advertising spend increased by 140 bps year-over-year, supporting brand growth.

Outlook and guidance

• Double-digit revenue growth expected to continue, with medium-term aspiration of 12%-15% CAGR and focus on profitability improvement through operating leverage and better channel mix.

• Direct channels expected to grow at ~15%, wholesale at high single digits; retail square footage expansion to continue.

• Aggressive marketing investment and retail network expansion planned throughout FY26.