Arvind Fashions (ARVINDFASN) Q4 25/26 earnings summary

Executive summary

• Achieved 14.8% revenue growth in Q4 and 14% for FY26, driven by disciplined execution, strong direct channel performance, and broad-based brand and channel growth.

• EBITDA grew 19% in Q4 to ₹189 crore, with margin expansion of 50 bps; FY26 EBITDA up 17% to ₹705 crore.

• PAT improved to ₹124 crore in FY26, up 62% YoY; Q4 PAT up 56% YoY; adjusted PAT from continuing operations at ₹139 crore.

• Direct-to-consumer (D2C) channels now account for 56% of sales, with online B2C growing 40–45% in Q4.

• Board recommended a final dividend of ₹1.60 per share, subject to shareholder approval.

Financial highlights

• Q4 FY26 revenue: ₹1,365 crore, up from ₹1,189 crore YoY; EBITDA: ₹189 crore, up 19.2% YoY; Q4 PAT: ₹47–76 crore.

• FY26 revenue: ₹5,266 crore, up 14% YoY; EBITDA: ₹705 crore, up 17% YoY; PAT: ₹124 crore; adjusted PAT: ₹139 crore.

• EBITDA margin for FY26 at 13.4%, up 40 bps YoY; gross margin improved 20–91 bps in Q4/FY26.

• Retail LTL growth: 7.8% in Q4, 8.1% for FY26; overall retail grew mid-double digits.

• Net working capital days stable at 64; inventory turns at 3.6x; inventory days at 102.

Outlook and guidance

• Targeting 12–15% revenue growth and 30–40 bps EBITDA margin expansion in FY27, aided by operating leverage and premiumization.

• Expect D2C share to rise to 65%; plan 1.5 lakh net sq ft retail addition in FY27.

• Like-for-like growth expected at 7–8%, with the remainder from expansion and upsizing.

• Continued investments in technology, marketing, and supply chain to support long-term value.