Arvind Fashions Ltd (AFL), the powerhouse behind premium lifestyle brands like Arrow, US Polo Assn., and Tommy Hilfiger, has kicked off FY26 with a confident stride. The company reported its consolidated financial results for the first quarter ending June 30, 2025, showcasing a robust performance across key metrics. With a consolidated revenue from operations of Rs 1.07 billion and a net profit of Rs 125.7 million, AFL continues to demonstrate resilience and strategic execution in a competitive retail landscape.
Key performance highlights:
- Consolidated revenue from operations stood at Rs 1.07 billion for Q1 FY26
- Net profit surged to Rs 125.7 million, reflecting strong operational efficiency
- EBITDA margins improved, driven by full-price sales and disciplined discounting
- Online channels and retail expansion contributed to top-line growth
- Inventory turns remained healthy, supporting working capital stability
Revenue momentum and brand strength:
Arvind Fashions’ Q1 revenue performance was underpinned by consistent consumer demand across its brand portfolio. The company’s focus on full-price sell-throughs and reduced discounting helped preserve margins, while its omnichannel strategy ensured reach and relevance. Brands like US Polo Assn. and Arrow continued to lead in terms of volume and profitability, with Tommy Hilfiger and Calvin Klein showing strong traction in premium segments.
Operational excellence:
- EBITDA for the quarter rose in double digits, with margin expansion of over 100 basis points
- Return on capital employed (ROCE) remained above 20 percent, reflecting efficient asset utilization
- Net working capital days held steady at 58, indicating disciplined inventory and receivables management
- The company maintained a healthy balance sheet with minimal debt exposure
Strategic initiatives and retail footprint:
Arvind Fashions has been actively expanding its retail footprint through new store formats and digital integration. The company’s investment in data-driven merchandising and customer analytics has enabled sharper inventory planning and personalized marketing. AFL also continues to strengthen its online presence through its proprietary platform NNNOW and strategic partnerships with leading e-commerce players.
- New store openings across Tier 1 and Tier 2 cities
- Enhanced digital engagement through targeted campaigns and influencer collaborations
- Continued investment in supply chain optimization and backend automation
Leadership commentary:
Managing Director and CEO Shailesh Chaturvedi emphasized the company’s commitment to profitable growth. He noted that AFL’s Q1 results reflect the successful execution of its brand-led strategy and operational discipline, even amid a cautious consumer environment. The leadership remains focused on scaling existing brands, improving margins, and accelerating retail and online expansion.
Market response and investor sentiment:
Following the announcement, AFL’s stock saw modest gains on the BSE, signaling investor confidence in the company’s trajectory. Analysts have lauded the company’s ability to maintain profitability while navigating macroeconomic headwinds and evolving consumer preferences.
- Share price movement post-results: marginal uptick observed
- Institutional interest remains strong, with AFL seen as a stable retail play
- Dividend outlook remains positive, with expectations of continued shareholder returns
Outlook for FY26:
Arvind Fashions is poised to build on its Q1 momentum with a focus on brand consolidation, retail innovation, and digital acceleration. The company aims to deepen customer engagement, optimize cost structures, and explore new growth avenues in footwear and innerwear segments.
- FY26 guidance includes mid-to-high single-digit revenue growth
- Continued emphasis on ROCE improvement and margin expansion
- Strategic brand partnerships and licensing deals under evaluation
Conclusion:
Arvind Fashions’ Q1 FY26 results underscore its ability to blend fashion with financial finesse. With a strong start to the fiscal year, the company is well-positioned to navigate the evolving retail landscape and deliver sustained value to stakeholders.
Source: Economic Times, CNBC TV18, Moneycontrol, BSE India (July 28, 2025)
