Arvind Fashions (ARVINDFASN) Q4 24/25 earnings summary

Executive summary

• Achieved 8.5% revenue growth year-over-year in FY25, with consolidated revenue reaching ₹4,619.84 crores and double-digit growth in retail and over 15% growth in online channels, despite a challenging demand environment.

• EBITDA grew 17% year-over-year to ₹637 crore, with margin expansion of 100 bps, and comparable PAT from continuing operations increased by over 70% year-over-year, excluding a one-time DTA charge.

• ROCE/ROSI surpassed 20%, up 400 basis points from last year, and net debt reduced by ₹75-76 crore, reflecting strong cash generation.

• 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.

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

Financial highlights

• FY25 revenue reached ₹4,620 crore, up 8.5% year-over-year; Q4 revenue was ₹1,189 crore, up 9% year-over-year, with retail channels growing 13%.

• Gross profit margin increased by 130 basis points to 53.5%, driven by reduced discounting and sourcing efficiency.

• Q4 EBITDA grew 15% to ₹170 crore; comparable PAT at ₹27 crore, up 8% year-over-year, excluding a ₹120 crore DTA charge.

• Net working capital days remained stable at 58, with inventory turns at 4x.

• Net profit attributable to equity holders for FY25 was ₹(35.57) crores, compared to ₹80.64 crores in FY24.

Outlook and guidance

• Targeting 12%-15% revenue growth in FY26, contingent on market conditions and continued direct channel momentum.

• Expecting further improvement in ROCE/ROSI and cash generation, with ongoing focus on profitable growth and asset-light expansion.

• Adjacent categories (footwear, innerwear, women's wear) expected to grow over 20%, supporting overall growth.

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