Financial Performance Overview
Arvind Fashions Limited reported strong financial results for FY2025-26 with consolidated revenue of ₹5,266.19 crores, representing 14% year-on-year growth. EBITDA reached ₹745 crores with 17% growth, while profit before tax (before Code on Wages impact) stood at ₹285 crores, showing 26.7% growth. The company achieved significant improvement in ROCE at 23%+ and maintained gross margins of 54.4% (up 91 bps YoY). Net profit attributable to equity holders was ₹122.57 crores, a substantial improvement from the loss of ₹35.57 crores in the previous year.
Operational and Strategic Highlights
The company expanded its retail footprint by net addition of ~1.43 lakh sq. ft., ending FY26 with 1,025 EBOs comprising 13.37 lakh sq. ft. D2C contribution reached 56% of total sales (+270 bps YoY), while online B2C grew 45% year-on-year. Retail LFL growth remained consistent at 8.1% throughout the year. The company completed acquisition of Flipkart India's 31.25% stake in Arvind Youth Brands Private Limited for ₹135 crores, making it a wholly-owned subsidiary.
ESG and Sustainability Performance
Arvind Fashions filed its Business Responsibility and Sustainability Report (BRSR) disclosing comprehensive ESG metrics. Key achievements included 100% sustainable polybag sourcing, 50% recycled polyester thread volume, and 100% labels made from recycled polyester. The company trained 7,741 employees on human rights issues and maintained 100% health insurance coverage for permanent employees. Environmental initiatives resulted in 334 MT plastic waste recycled under EPR obligations and 86 tCO2e emissions avoided through solar power adoption.
Corporate Governance and Leadership
The board recommended a final dividend of ₹1.60 per equity share, subject to shareholder approval. Leadership transition occurred with Amisha Jain appointed as Managing Director & CEO effective August 13, 2025. The company maintained strong corporate governance with comprehensive policies including Code of Conduct, Whistle Blower, and ESG frameworks. No monetary penalties were reported against directors or KMPs during the financial year.
Financial Position and Capital Structure
Consolidated balance sheet showed total assets of ₹4,215.78 crores (FY25: ₹3,809.18 crores) with inventories at ₹1,389.56 crores and trade receivables of ₹751.58 crores. Total borrowings stood at ₹531.34 crores while lease liabilities were ₹804.54 crores. The company generated strong operating cash flow of ₹447.63 crores and maintained cash equivalents of ₹50.81 crores.
Forward Outlook and Recognition
The company continues to focus on brand portfolio strengthening, digital transformation through AI and data analytics investments, and sustainability initiatives across operations. Arvind Fashions received several awards including NORO Excellence in E-Commerce Innovation and IGBC Platinum Rating for its Hoskote facility. The AGM is scheduled for August 19, 2026, with record date for dividend set as August 7, 2026.