Arvind Fashions (ARVINDFASN) Q3 25/26 earnings summary

Executive summary

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

• EBITDA grew 18% year-over-year to ₹195 crore, with a 40 bps margin improvement to 14.2%.

• PAT (excluding one-time wage code charge) increased by 65.2% year-over-year to ₹44 crore, demonstrating strong operating leverage.

• Direct-to-consumer channels accounted for 63% of sales, with online B2C growing nearly 50% year-over-year.

Financial highlights

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

• EBITDA for Q3 FY26 reached ₹195 crore, up from ₹165 crore year-over-year; YTD EBITDA was ₹515 crore.

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

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

• 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.

• Store expansion to continue, aiming for 150,000 sq ft net addition in FY26 and asset-light growth.

• Plans to improve working capital efficiency and enhance ROCE.

• Stable demand and regulatory tailwinds (interest rate cuts, GST reforms, easing inflation) expected to support growth.