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 strong direct channel and brand performance, especially U.S. Polo and footwear.

• EBITDA increased by 18.2% to INR 200 crore, with margin expansion of 80 basis points; PAT grew 27% to INR 38 crore.

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

• Continued investments in marketing, store expansion, and premiumization, with adjacent categories like footwear and innerwear growing over 20%.

• Consolidated revenue for the six months ended September 30, 2025, was ₹2,524.62 crores, up from ₹2,228.02 crores year-over-year.

Financial highlights

• Revenue for Q2 FY26: INR 1,418 crore, up from INR 1,273 crore year-over-year; consolidated quarterly income at ₹1,430.52 crores.

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

• PAT: INR 38 crore, up from INR 30 crore; PBT growth of nearly 31%.

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

• Earnings per share (EPS) for the six months stood at ₹3.75 (basic) versus ₹2.32 last year.

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.

• Continued focus on core branded apparel business and scaling adjacent categories.