Arvind Fashions (ARVINDFASN) Q3 25/26 earnings summary

Executive summary

• Achieved 14.5% year-over-year revenue growth in Q3 FY26, reaching ₹1,377 crore, driven by strong direct channel performance, robust festive season sales, and effective retail execution.

• EBITDA grew 18% year-over-year to ₹195 crore, with a 40 basis points margin expansion to 14.2%.

• Adjusted PAT (excluding Code on Wages impact) rose 65.2% year-over-year to ₹44 crore, demonstrating strong operating leverage.

• Strategic reacquisition of a 31.25% stake in Arvind Youth Brands Private Limited (AYBPL) from Flipkart, reinforcing Flying Machine's role as a key growth driver.

• Direct channels (retail and online B2C) outperformed, with retail LTL growth of 8.2% and nearly 50% growth in online B2C.

Financial highlights

• Q3 FY26 revenue was ₹1,377 crore, up from ₹1,203 crore in Q3 FY25; YTD FY26 revenue reached ₹3,901 crore, up from ₹3,431 crore in YTD FY25.

• Q3 EBITDA reached ₹195 crore, up from ₹165 crore year-over-year; YTD EBITDA was ₹515 crore, up from ₹443 crore.

• Q3 PAT (excluding wage code impact) was ₹44 crore, up 65.2% year-over-year; Q3 PBT (before Code on Wages impact) was ₹83 crore, up 20.4%.

• Gross margin improved by 50 basis points to 55.4% in Q3 FY26; inventory freshness at an all-time high.

• Net working capital days at 63, with inventory turns at 3.7x.

Outlook and guidance

• Management targets 12–15% annual revenue growth, with continued focus on direct channels, premiumization, and profitability improvement through operating leverage and better channel mix.

• Store expansion to add 150,000 sq ft in FY26, with an asset-light approach and focus on ROCE.

• Continued investment in marketing, digital capabilities, and working capital control to drive higher ROCE.

• Expect government initiatives and regulatory tailwinds to boost consumer disposable income and demand in the medium term.