Arvind Fashions Q4 FY26 Results: Revenue Up 14.8%, PAT Turns Positive
Arvind Fashions reported Q4 FY26 revenue growth of 14.8% and full-year growth of 14%. PAT turned positive, growing 56% in Q4 on a comparable basis. ROCE exceeded 23%. The company anticipates sustaining mid-double-digit growth in FY27 with 30-40 bps EBITDA margin expansion.
The announcement details strong financial performance and a positive outlook for future growth, which are material events for investors and analysts, impacting the company's valuation and strategic direction.
The company reported strong financial results with significant growth in revenue and profitability, turning PAT positive and achieving a high ROCE. The outlook for the next fiscal year is also positive, with guidance for continued growth and margin expansion.
Arvind Fashions Limited held an earnings call on May 7, 2026, to discuss their financial performance for the fourth quarter and the full year ended March 31, 2026. The company reported a strong growth trajectory, with revenue increasing by 14.8% in Q4 FY26 and 14% for the full year.
The company highlighted robust execution across all growth drivers, supported by stable demand, strategic investments in brand and people, and superior retail execution. This led to a like-for-like (LTL) growth of 7.8% in retail and over 40% growth in the online direct-to-consumer (D2C) channel.
Profitability saw significant improvement, with EBITDA growing by 19% and a 50-basis point margin expansion in Q4. Profit After Tax (PAT) on a comparable basis grew by 56% in Q4 and 62% for the full year, indicating strong operating leverage. The company achieved a milestone of generating over 23% return on capital employed (ROCE), which remains a key metric.
Key takeaways from the call include the compounding D2C engine, with direct channels now accounting for 56% of sales, up 300 basis points year-on-year. Online B2C alone grew 40% in Q4. Profitability is described as structural, with gross margins, EBITDA, and ROCE at new highs, and inventory freshness at an all-time high.
Looking ahead to FY27, Arvind Fashions expects to sustain mid-double-digit growth with an additional 30-40 basis points of EBITDA margin expansion, despite a potentially uncertain macro environment. The company plans to focus on its five strategic pillars: portfolio diversification, building differentiated brands, enhancing its D2C organization, transforming with data and AI, and developing a nimble supply chain.
During the Q&A, management discussed brand performance, with USPA, PVH brands, and Flying Machine showing strong growth. Arrow experienced a temporary slowdown due to a model change and a weak wedding calendar. The company also addressed store expansion plans, with an addition of approximately 1.5 lakh net square feet expected in FY27. Discussions also covered inventory management, debt reduction plans, and the strategic importance of adjacent categories like footwear and innerwear.
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