Arvind Fashions (ARVINDFASN) Q2 25/26 earnings summary

Executive summary

• Achieved double-digit revenue growth of 11.3% year-over-year in Q2 FY26, with highest-ever sales and EBITDA, driven by direct channel and retail execution.

• EBITDA grew 18.2% to INR 200 crore, with margin improvement of 80 basis points.

• PAT increased 27% year-over-year to INR 38 crore, with consolidated net profit for six months at INR 81.21 crore.

• Direct channels (retail and B2C) now contribute nearly 50% of sales, up 5 percentage points from last year.

• U.S. Polo led brand growth with over 20% increase, and adjacent categories like footwear grew 25%+.

Financial highlights

• Revenue for Q2 FY26 was INR 1,418 crore, up from INR 1,273 crore year-over-year; consolidated revenue for six months was INR 2,524.62 crore.

• EBITDA increased to INR 200 crore from INR 170 crore, with margin expansion of 80 basis points.

• PAT for Q2 FY26 was INR 38 crore, up from INR 30 crore; PBT for six months was INR 126.26 crore.

• Gross margin improved by 210 basis points to nearly 53%, aided by reduced discounting.

• Inventory freshness at all-time high of 85%.

Outlook and guidance

• Double-digit revenue growth expected to continue, supported by strong wedding season, government initiatives, and investments in growth drivers.

• On track to meet new store addition targets and net square footage expansion for the year.

• EBITDA margin guidance of 50-80 basis points expansion for FY26 reaffirmed.

• Focus remains on scaling brands, expanding adjacent categories, and improving profitability through operating leverage and better channel mix.