Arvind Fashions posts strong Q1 driven by revenue and profit growth

Arvind Fashions Limited (AFL), a leading player in India's casual and denim wear market, has announced financial results for the first quarter ended June 30, 2025 with a strong start to the fiscal year, showcasing significant growth across key metrics.

For Q1 FY26, AFL's revenues surged by 16 percent to Rs. 1,107 crores, indicating a strong trend across all sales channels. A particular focus on direct channels yielded positive results, with an 8.1 percent like-for-like (LTL) growth and an over 30 percent increase in the online B2C channel. The company also saw an expansion in gross margins by 60 basis points, reaching 55.9 percent, primarily attributed to reduced consumer discounting.

Profitability also saw a substantial uplift, with EBITDA growing by 20.3 percent to Rs. 148 crores, compared to the corresponding quarter of the previous fiscal year. This translated into a 50 basis points improvement in EBITDA margin, reaching 13.4 percent, despite a 140 basis points increase in advertising spends year-over-year. Net profit (PAT) rose to Rs. 13 crores from just Rs 1 crore in Q1 FY25.

Commenting on the strong performance, Shailesh Chaturvedi, MD & CEO of Arvind Fashions Limited, stated, “Q1 FY26 witnessed a bright start to this year with revenue growth reaching 16%. This is a testimony of our conscious efforts of investing in higher marketing to re-energize our industry leading brands leading to strong awareness and higher footfalls along with market share gains.” He further added, “Moving ahead, we will continue to focus on our direct channel strategy resulting in higher bottom-line & ROCE.”

Arvind Fashions Limited houses a portfolio of renowned international fashion brands such as U.S. Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein, and Flying Machine, catering to a wide range of consumer preferences and price points across various lifestyle categories.