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 and strong direct channel performance across all brands.

• EBITDA grew 19% in Q4 to ₹189 crore, with margin expansion of 50 bps; FY26 EBITDA up 17% to ₹705 crore and margin at 13.4%.

• PAT improved to ₹124 crore from a loss of ₹34 crore in FY25; Q4 PAT up 56% YoY; adjusted PAT from continuing operations grew 62% to ₹139 crore.

• Direct-to-consumer (D2C) channels now account for 56% of sales, with online B2C growing 40–45% in Q4 and FY26.

• 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; FY26 revenue: ₹5,266 crore, up 14% YoY.

• Q4 EBITDA: ₹189 crore (up 19.2% YoY); Q4 PAT: ₹47–76 crore; FY26 PAT: ₹124–139 crore, up 62% YoY.

• EBITDA margin for FY26 at 13.4%, up 40 bps YoY; gross margin improved by 91 bps to 54.4%.

• Retail like-for-like (LTL) growth: 7.8% in Q4, 8.1% for FY26.

• Adjacency categories (e.g., footwear, innerwear) now contribute 24% of business, growing at 20–25%.

Outlook and guidance

• Targeting 12–15% revenue growth and 30–40 bps EBITDA margin expansion in FY27, with continued retail and D2C expansion.

• D2C share targeted to reach 65%; each brand to have its own dotcom and app live in FY27.

• Store fleet to expand by 1.5 lakh net sq ft in FY27, with focus on asset-light FOFO model.

• 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.