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India's Arvind Fashions Q2 FY26 revenue rises 11% on stronger margins

04 Nov '25
2 min read
India's Arvind Fashions Q2 FY26 revenue rises 11% on stronger margins
Pic: T. Schneider / Shutterstock.com

Insights

  • Arvind Fashions Limited (AFL) has posted consolidated revenues of ₹1,418 crore (~$159.7 million) in Q2 FY26, up 11.3 per cent YoY, driven by robust direct channel and 50 per cent growth in online B2C sales.
  • Gross margin rose 210 bps to 52.5 per cent, while EBITDA grew 18.2 per cent to ₹200 crore (~$22.5 million).
  • H1 FY26 revenues stood at ₹2,525 crore (~$284.5 million).
India’s leading casual and denim player Arvind Fashions Limited (AFL) has reported consolidated revenues of ₹1,418 crore (~$159.7 million) in the second quarter (Q2) of fiscal 2026 (FY26) ended September 30, 2025, an increase of 11.3 per cent year-over-year (YoY). The company’s growth was driven by strong performance across direct channels, which recorded 8.3 per cent like-to-like growth and over 50 per cent rise in online business-to-consumer (B2C) sales.

The gross margins expanded by 210 basis points (bps) to 52.5 per cent, supported by a richer channel mix and reduced discounts. EBITDA grew 18.2 per cent to ₹200 crore (~$22.5 million), while margins improved by 80 bps to 14.1 per cent. Profits after tax rose 26.9 per cent to ₹38 crore compared to ₹30 crore in the corresponding quarter last year. Inventory turns remained steady, and net working capital days were maintained at 60.

For the first half of FY26, revenues stood at ₹2,525 crore (~$284.5 million), up 13.3 per cent from ₹2,228 crore a year earlier. EBITDA increased by 19.1 per cent YoY to ₹348 crore, while profit before tax reached ₹126 crore, clocking a 40 per cent YoY rise.

“In Q2 FY26, we sustained our strong growth trajectory with an 11.3 per cent increase in revenue. The recent GST reforms are expected to further boost consumer confidence and spending. As we move forward, we remain focused on investing in our marquee brands and strengthening consumer connections through our direct channel strategy, while accelerating retail expansion, driving premiumisation, and scaling adjacent categories to create long-term value for our shareholders,” said Amisha Jain, MD and CEO at Arvind Fashions.

ALCHEMPro News Desk (SG)

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