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 superior retail execution.

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

• PAT (excluding Code on Wages impact) rose 65.2% year-over-year to ₹44 crore; reported PAT was ₹26 crore.

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

• Direct channels now account for 63% of sales, up 260 basis points from last year.

Financial highlights

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

• Q3 EBITDA reached ₹195 crore, compared to ₹165 crore in the prior year quarter; YTD EBITDA grew to ₹515 crore from ₹443 crore.

• Gross margin improved by 50 basis points year-over-year to 55.4% in Q3 FY26.

• PAT (excluding Code on Wages impact) was ₹44 crore, up 65% year-over-year; PBT before Code on Wages impact was ₹83 crore, up 20.4%.

• Net working capital days at 63 (Dec'25) vs. 59 (Dec'24); inventory turns at 3.7x.

Outlook and guidance

• Management targets 12–15% annual revenue growth, with continued focus on direct channels, premiumization, and asset-light retail expansion.

• Confident of maintaining double-digit growth rates and achieving a net addition of 150,000 sq ft retail space in FY26.

• Plans to accelerate store expansion, improve working capital efficiency, and enhance ROCE.

• Stable demand environment expected to support double-digit revenue growth and profitability improvement.

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