Key Financial Results - Standalone (₹ in Crores)

Income Statement:

  • Revenue from Operations: ₹135.81 (Q1 FY27) vs ₹118.22 (Q1 FY26)
  • Other Income: ₹3.26 (Q1 FY27) vs ₹3.35 (Q1 FY26)
  • Total Income: ₹139.07 (Q1 FY27) vs ₹121.57 (Q1 FY26)
  • Total Expenses: ₹159.70 (Q1 FY27) vs ₹148.93 (Q1 FY26)
  • Loss Before Tax: ₹(20.63) (Q1 FY27) vs ₹(27.36) (Q1 FY26)
  • Tax Expense: ₹(5.23) (Q1 FY27) vs ₹(4.45) (Q1 FY26)
  • Net Loss After Tax: ₹(15.40) (Q1 FY27) vs ₹(22.91) (Q1 FY26)
  • Total Comprehensive Loss: ₹(15.35) (Q1 FY27) vs ₹(22.93) (Q1 FY26)

Per Share Data (Not Annualized):

  • Basic EPS: ₹(1.15) (Q1 FY27) vs ₹(1.72) (Q1 FY26)
  • Diluted EPS: ₹(1.15) (Q1 FY27) vs ₹(1.72) (Q1 FY26)

Capital Structure:

  • Paid-up Equity Share Capital: ₹53.46 crores (Face Value ₹4 per share)
  • Other Equity: ₹2,274.35 crores (as of March 31, 2026)

Key Financial Results - Consolidated (₹ in Crores)

Income Statement:

  • Revenue from Operations: ₹1,278.50 (Q1 FY27) vs ₹1,107.31 (Q1 FY26)
  • Other Income: ₹7.01 (Q1 FY27) vs ₹14.55 (Q1 FY26)
  • Total Income: ₹1,285.51 (Q1 FY27) vs ₹1,121.86 (Q1 FY26)
  • Total Expenses: ₹1,245.48 (Q1 FY27) vs ₹1,083.02 (Q1 FY26)
  • Profit Before Tax (Continuing): ₹40.03 (Q1 FY27) vs ₹38.84 (Q1 FY26)
  • Tax Expense: ₹12.01 (Q1 FY27) vs ₹13.71 (Q1 FY26)
  • Net Profit After Tax (Continuing): ₹28.02 (Q1 FY27) vs ₹25.13 (Q1 FY26)
  • Loss from Discontinued Operations: ₹(0.41) (Q1 FY27) vs ₹(0.27) (Q1 FY26)
  • Total Comprehensive Income: ₹24.17 (Q1 FY27) vs ₹24.94 (Q1 FY26)

Attribution of Profit:

  • Equity Holders of Parent: ₹9.57 (Q1 FY27) vs ₹12.57 (Q1 FY26)
  • Non-controlling Interest: ₹18.04 (Q1 FY27) vs ₹12.29 (Q1 FY26)

Per Share Data (Not Annualized) - Continuing Operations:

  • Basic EPS: ₹0.75 (Q1 FY27) vs ₹0.96 (Q1 FY26)
  • Diluted EPS: ₹0.75 (Q1 FY27) vs ₹0.96 (Q1 FY26)

Capital Structure:

  • Paid-up Equity Share Capital: ₹53.46 crores (Face Value ₹4 per share)
  • Other Equity: ₹890.18 crores (as of March 31, 2026)

Operational and Strategic Highlights

Business Performance:

  • Consolidated revenue growth of 15.5% YoY to ₹1,279 crores
  • EBITDA (excluding other income) growth of 19.6% YoY to ₹160 crores
  • EBITDA margin improvement of 44 bps to 12.5%
  • Gross margin expansion of 90 bps to 56.7%
  • Direct channels contributed 62% of company's revenue
  • Retail like-to-like (L2L) growth of 11.6%
  • Online B2C growth of approximately 38%

Working Capital Management:

  • Net Working Capital (NWC) days remained stable at 65 days
  • Inventory days: 105 (Jun'26) vs 92 (Jun'25)
  • Debtor days: 52 (Jun'26) vs 55 (Jun'25)
  • Creditor days: 93 (Jun'26) vs 89 (Jun'25)
  • Inventory freshness at all-time high

Expansion and Growth Initiatives:

  • Gross addition of 23 Exclusive Brand Outlets (EBOs)
  • Net square footage addition of approximately 20K
  • Adjacent categories witnessed 25%+ growth
  • Focus on direct channels (retail + online B2C) with target to grow share by 100-200 bps

Market Conditions:

  • Early onset of End of Season Sale (EOSS) and higher discounting across industry
  • Cost pressures due to increased minimum wages and rising fuel costs
  • Continuing West Asia conflict and impact of El Nino on monsoon creating inflationary pressure
  • Raw material prices rising after some respite
  • Rupee appreciation recently touching all-time high

Corporate Actions and Regulatory Compliance

ESOP Allotment:

  • 32,000 equity shares of ₹4 each allotted to option grantees during Q1 FY27 (vs 91,700 in Q1 FY26)
  • 3,54,479 shares allotted during FY26

Taxation:

  • Management opted to exercise option under Section 115BAA of Income Tax Act, 1961
  • Resulted in deferred tax charge of ₹6.19 crores for FY26

Labour Code Implementation:

  • Government notified four Labour Codes on November 21, 2025
  • Company recognized one-time incremental provision towards gratuity and compensated absences
  • Standalone: ₹5.06 crores provision in FY26 (presented as exceptional item)
  • Consolidated: ₹23.32 crores provision in FY26 (presented as exceptional item)

Subsidiary Update:

  • Group completed acquisition of 31.25% stake in Arvind Youth Brands Private Limited from Flipkart India Private Limited for ₹135.00 crores on December 29, 2025
  • AYBPL became wholly owned subsidiary, excess consideration of ₹131.56 crores adjusted against retained earnings

Discontinued Operations:

  • Aeropostale and Ed Hardy brands discontinued during FY24 and classified as discontinued operations
  • Loss from discontinued operations: ₹(0.41) crores (Q1 FY27) vs ₹(0.27) crores (Q1 FY26)

Management Commentary

Ms. Amisha Jain, MD & CEO, commented: "We have begun the year with a strong operating performance, delivering revenue growth of 15.5% and EBITDA growth of 19.6%. This performance is particularly noteworthy given the inflationary environment shaped by the West Asia conflict, higher petroleum prices, elevated forex rates and minimum wage increases across several states, and reflects the resilience of our brand portfolio and the discipline of our operating model."

FY27 Objectives

  • Improve brand salience through continued marketing investments
  • Grow direct channel share by 100-200 bps through retail and online B2C expansion
  • Gross opening of ~150 stores, largely through FOFO route
  • Higher free cash flow generation through NWC efficiency and asset-light approach
  • Further improvement in ROCE
  • Leveraging AI and analytics for cost efficiencies and front-end effectiveness

Auditor Review

  • Financial results reviewed by Deloitte Haskins & Sells
  • Limited review conducted in accordance with SRE 2410
  • No material misstatements identified in the financial results

Documents Submitted

1. Unaudited Standalone and Consolidated Financial Results for Q1 FY27

2. Limited Review Reports by Statutory Auditors

3. Press release in respect of unaudited financial results

4. Investor Presentation for Q1 FY27

All documents are available on company's website at https://www.arvindfashions.com/