Arvind Fashions (ARVINDFASN) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 revenue grew 15.5% year-over-year to ₹1,279 crore, driven by strong direct-to-consumer (D2C) channel performance and robust retail execution, with D2C contributing 62% of sales and online B2C up 38%.

• EBITDA increased 19.6% year-over-year to ₹160 crore, with a 44 bps margin improvement to 12.5%.

• PAT from continuing operations declined to ₹10 crore from ₹13 crore YoY, mainly due to lower other income.

• Strategic focus remains on brand investments, technology, AI, and retail expansion to drive long-term growth.

• Continued expansion of marquee EBOs and focus on direct-to-consumer channels.

Financial highlights

• Revenue from operations reached ₹1,279 crore in Q1 FY27, up from ₹1,107 crore YoY.

• EBITDA (excluding other income) was ₹160 crore, up 19.6% YoY, with a 44 bps margin improvement.

• Gross margin improved by 90 bps to 56.7%, driven by higher full-price sell-through and reduced discounting.

• Online direct-to-consumer business grew 23% YoY; retail channel grew 18%.

• Adjacent categories posted over 25% growth.

Outlook and guidance

• Management expects to sustain mid-double-digit revenue growth for the rest of FY27, with 30-40 bps EBITDA margin expansion.

• Revenue growth aspiration of 12-15% with margin expansion through operating leverage.

• Continued investment in technology, AI, marketing, and store expansion to support growth.

• Inventory turns targeted to improve from 3.5 to 3.7-3.8 over 18-24 months.

• Focus on higher free cash flow generation and further improvement in ROCE.