Arvind Fashions Ltd (AFL), one of India’s leading casual and denim players, reported a sharp turnaround in the March quarter of FY26, posting a profit after tax (PAT) of ₹47 crore compared to a net loss of ₹93 crore in the same period last year.
Revenue for the quarter rose 14.8% year-on-year to ₹1,365 crore, driven by healthy like-to-like (LTL) growth of 7.8% and continued momentum in direct channels.
Margin expansion drives earnings
EBITDA for Q4 grew 19.2% to ₹189 crore from ₹159 crore a year ago, while EBITDA margin expanded by around 50 basis points to 13.9%. The improvement was led by a 20 bps expansion in gross margins to 54.1%, supported by higher full-price sell-through and lower retail discounting.
Operational metrics remained strong, with inventory freshness at an all-time high and net working capital days stable at 64 days. The company also achieved a return on capital employed (ROCE) of 23.5%, marking an improvement of over 300 basis points year-on-year.
FY26 performance remains robust
For the full year, AFL delivered revenue growth of 14% to ₹5,266 crore compared to ₹4,620 crore in FY25. Growth was driven by strong execution in direct channels, retail footprint expansion and sustained traction in online direct-to-consumer platforms, alongside 8.1% LTL growth.
Gross margins for the year improved by 91 basis points to 54.4%, aided by a richer channel mix, lower discounting and sourcing efficiencies.
The company reported a PAT of ₹124 crore for FY26, a sharp recovery from a net loss of ₹34 crore in the previous fiscal. EBITDA rose 17% to ₹705 crore, with margins expanding 40 basis points to 13.4%.
To focus on accelerating growth
MD & CEO Amisha Jain said FY26 marked another strong year for the company, with consistent revenue growth and a significant improvement in profitability, reflecting the strength and quality of its earnings trajectory.
She added that the company will continue to focus on accelerating growth across its marquee brands by expanding into adjacent categories, increasing brand investments and deepening consumer engagement. Enhancing the share of direct channels and investing in technology and AI, along with building a nimble supply chain, will remain key priorities going forward.
Dividend announced
The Board of Directors has recommended a final dividend of ₹1.60 per equity share of ₹4 each for FY26, subject to shareholder approval at the upcoming Annual General Meeting.