Arvind Fashions (ARVINDFASN) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue reached ₹1,559 crore, up 10.0% YoY; adjusted for festive-season and online-event timing, growth was ~15%.

• Post-Ind AS EBITDA excluding other income rose 15.5% to ₹216 crore, with margin expansion of 67 bps; reported PAT rose 29% to ₹48 crore.

Financial highlights

• Q2 revenue from operations was ₹1,559 crore versus ₹1,418 crore; H1 FY27 consolidated revenue was ₹2,837.33 crore versus ₹2,524.82 crore, up 12.4%.

• Q2 post-Ind AS EBITDA excluding other income was ₹216 crore versus ₹187 crore; pre-Ind AS EBITDA was ₹144 crore, up 18.0%.

• Continuing-business PAT was ₹49 crore post-Ind AS versus ₹38 crore, up 29.6%; reported PAT was ₹48 crore versus ₹37 crore. Pre-Ind AS PAT grew 38%.

• Gross margin expanded 136 bps to 53.9%, supported by lower discounting, premiumization and improved channel mix; marketing investment rose 24 bps YoY.

• H1 consolidated EBITDA was ₹376 crore versus ₹321 crore, up 17.2%; H1 continuing-business PAT was ₹59 crore versus ₹51 crore, up 16.4%.

Outlook and guidance

• FY27 revenue growth aspiration is 12%–15%; management expects mid-double-digit growth for the balance of FY27 and 30–40 bps EBITDA margin expansion.

• FY27 objectives include 100–200 bps higher direct-channel share, ~150 gross store openings and 12%–15% net square-footage addition.

• H2 FY27 free cash flow is estimated at ₹150–175 crore, with a large portion intended for debt repayment.

• H2 festive sales were tracking ahead of expectations, with nearly high-double-digit LTL growth and encouraging consumer offtake across channels.

• Raw-material procurement inflation was 5%–6%; expected cost increases of ~5% are to be mitigated through MRP actions and cost controls.