Arvind Fashions (ARVINDFASN) Q4 24/25 earnings summary

Executive summary

• Achieved 8.5% revenue growth for FY25, with annual consolidated revenue reaching ₹4,619.84 crores, despite a challenging demand environment and muted consumer sentiment; strong gains in market share and brand momentum were noted.

• EBITDA grew 17% year-over-year, with margin expansion of 100 bps, and ROCE surpassed 20% for the first time; comparable PAT from continuing operations increased by over 70% year-over-year, excluding a one-time DTA charge.

• Net debt reduced by INR 75 crore (₹76 crore), reflecting strong cash generation and disciplined capital allocation.

• Retail LTL growth was 5.5% for the year, with double-digit growth in retail and over 15% growth in online channels.

• The group recommended a final dividend of ₹1.60 per equity share for FY25, subject to shareholder approval.

Financial highlights

• FY25 revenue reached INR 4,620 crore (₹4,619.84 crores), up 8.5% year-over-year; Q4 revenue was ₹1,189 crore, up 9% year-over-year.

• Gross profit margin increased by 130 basis points to 53.5%, driven by reduced discounting and improved channel mix.

• Annual EBITDA grew 17% to INR 637 crore, approaching 14% margin; Q4 EBITDA was ₹170 crore, up 15% year-over-year.

• Net profit for the year from continuing and discontinued operations was ₹32.98 crores, down from ₹137.11 crores in the previous year, impacted by a significant deferred tax charge and discontinued operations.

• Exceptional DTA charge of INR 120 crore (₹120 crore) in Q4 due to tax regime change; adjusted full-year bottom line grew over 70%.

Outlook and guidance

• Targeting 12%-15% revenue growth in FY26, supported by sq ft expansion and strong direct channel momentum.

• Expectation of improved demand environment due to macroeconomic tailwinds and government measures.

• Confident in sustaining margin expansion and further improving ROCE, with continued focus on profitability improvement and asset-light expansion.

• Plan to accelerate retail network expansion and maintain higher marketing investments.

• The Board recommended a final dividend of ₹1.60 per share, reflecting confidence in future prospects.