Arvind Fashions Reports Double-Digit Revenue and Highest-Ever Sales & EBITDA in Q2 FY26
Arvind Fashions reported robust Q2 FY26 results with 11.3% revenue and 18.2% EBITDA growth, reaching highest-ever figures. Direct channels and US Polo drove performance. GST reforms and H2 wedding season are expected to further boost demand.
The announcement details the company's financial performance for Q2 FY26, including significant revenue and profit growth, margin expansion, and strategic outlook. These are crucial indicators for investors and directly influence stock valuation and future expectations.
AFL reported double-digit revenue growth (11.3%) and 18.2% EBITDA growth, achieving its highest-ever sales and EBITDA. Profit After Tax increased by 23.3%. The company saw strong performance in direct channels and key brands like U.S. Polo, along with positive impacts expected from GST reforms and upcoming festive season.
Arvind Fashions Limited (AFL) announced strong financial results for the second quarter and half year ended September 30, 2025. * The company delivered: * Double-digit revenue growth of 11.3%, with Net Sales Value (NSV) at ₹1,418 crore compared to ₹1,273 crore in the same quarter last year. * Highest-ever sales and Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) of ₹200 crore, an 18.2% increase from ₹170 crore in Q2 last year, leading to an 80 basis points margin expansion. * Profit After Tax (PAT) grew to ₹37 crore from ₹30 crore in Q2 last year. * Gross margin improved by 210 basis points to nearly 53%. * Direct channels, including retail and B2C online, significantly contributed to growth, now accounting for almost 50% of sales (a 5 percentage point increase year-on-year). * Retail growth was healthy at 14%, with a strong 8.3% like-for-like (LTL) growth. * AFL added over 36,000 square feet of retail space in the quarter, with a net addition of 10 stores (24 stores added, 16 closed). * Online B2C business grew by over 50%, increasing its share to 12% of sales. * The government's GST 2.0 reform, which reduced GST on articles priced below ₹2,500 to 5% from 12%, was implemented. AFL passed on these benefits to consumers, expecting a positive impact on demand in the medium term. * Brand performance highlights: * U.S. Polo grew exceptionally at 21%, driven by advertising campaigns, product innovation, and new retail identity stores. * Adjacent categories, including footwear, innerwear, and womenswear, grew by 22%, with footwear alone growing over 25%. The company aims to double the footwear business size in the next 3 years. * Inventory freshness reached an all-time high of more than 85%, and overall working capital remained stable. * Management outlook: * Expects positive traction in the second half of the fiscal year due to the upcoming wedding season and government initiatives boosting consumer disposable income. * The company will continue to focus on profitable growth, aiming for 50-80 basis points EBITDA margin improvement. * The management is building a 3-year strategy focused on sharpening brand positioning, diversifying offerings through adjacent categories, and enhancing consumer-centric approaches. * An earnings conference call with analysts and investors was held on Tuesday, November 04, 2025, at 2:30 P.M. IST, to discuss the Q2 & H1 FY26 results. The transcript of this call was attached and uploaded to the company's website.
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