Arvind Fashions Q2 Revenue Up 10% YoY

Financial Performance (Post Ind-AS):

Revenue from Operations: ₹1,559 crore in Q2 FY27, compared to ₹1,418 crore in Q2 FY26, representing 10.0% year-on-year growth.
EBITDA (excluding other income): ₹216 crore (13.9% margin) in Q2 FY27, compared to ₹187 crore (13.2% margin) in Q2 FY26, representing a 67 bps margin expansion.
Other Income: ₹7 crore in Q2 FY27, compared to ₹13 crore in Q2 FY26.
Profit Before Tax (PBT): ₹91 crore in Q2 FY27, compared to ₹87 crore in Q2 FY26.
Taxes: ₹24 crore in Q2 FY27, compared to ₹31 crore in Q2 FY26.
PAT from continuing operations: ₹49 crore in Q2 FY27, compared to ₹38 crore in Q2 FY26, representing 29.6% growth.
Reported PAT: ₹48 crore in Q2 FY27, compared to ₹37 crore in Q2 FY26.

Half-Year FY27 Performance (Post Ind-AS):

Revenue from Operations: ₹2,837 crore in H1 FY27, compared to ₹2,525 crore in H1 FY26.
EBITDA (excluding other income): ₹376 crore (13.2% margin) in H1 FY27, compared to ₹321 crore (12.7% margin) in H1 FY26.
Other Income: ₹14 crore in H1 FY27, compared to ₹28 crore in H1 FY26.
PBT: ₹131 crore in H1 FY27, compared to ₹126 crore in H1 FY26.
Taxes: ₹36 crore in H1 FY27, compared to ₹45 crore in H1 FY26.
PAT from continuing operations: ₹59 crore in H1 FY27, compared to ₹51 crore in H1 FY26.
Reported PAT: ₹58 crore in H1 FY27, compared to ₹50 crore in H1 FY26.

Pre Ind-AS Comparison (Q2):

Revenue from Operations: ₹1,559 crore in Q2 FY27, ₹1,418 crore in Q2 FY26, ₹1,273 crore in Q2 FY25.
EBITDA (excluding other income): ₹144 crore (9.2% margin) in Q2 FY27, ₹122 crore (8.6% margin) in Q2 FY26, ₹102 crore (8.0% margin) in Q2 FY25.

Sales Performance:

Overall revenue growth of 10.0% year-on-year driven by direct channel performance.
Retail Like-to-Like (LTL) growth of 7.3%; adjusted for festive shift, retail LTL is 10%.
Channel-wise performance:
Retail channel: 15.4% growth with strong LTL and store expansion
Online direct-to-consumer business: 28% year-on-year growth (45% growth adjusted for festive shift)
Wholesale channels: Mid-single digit growth in consumer sales due to festive shift
Gross addition of 24 Exclusive Brand Outlets (EBOs); net square footage addition of ~26K.
EBO count stood at 1,044 as of September 2026.
Adjacent categories growth of 13%.

Margin Drivers:

Gross margins higher by 136 bps in Q2 led by strong LTL, lower retail discounting, and better channel mix.

As of September 30, 2026 (in ₹ crores):

Comparative Working Capital (in ₹ crores):

| Particulars | Sep'26 | Jun'26 | Mar'26 | Sep'25 |

| Inventory | 1,828 | 1,644 | 1,605 | 1,492 |

| Receivables | 844 | 684 | 752 | 936 |

| GWC | 2,672 | 2,328 | 2,356 | 2,428 |

| Payables | 1,584 | 1,312 | 1,387 | 1,467 |

| NWC | 1,088 | 1,016 | 969 | 961 |

As of September 30, 2026 (in ₹ crores):

Comparative Balance Sheet (in ₹ crores):

| Particulars | 30-Sep-2026 | 31-Mar-2026 |

| Net Worth | 1,231 | 1,161 |

| Borrowings | 690 | 531 |

| Capital Employed | 1,921 | 1,692 |

| Inventory | 1,828 | 1,605 |

| Receivables | 844 | 752 |

| Creditors | 1,584 | 1,387 |

| Net Working Capital | 1,088 | 969 |

| Net Fixed Asset | 411 | 361 |

| Discontinued Operations | (12) | (12) |

| Other Assets | 435 | 373 |

Arrow: Strong double-digit LTL growth with lower retail discounting; 25%+ growth in direct channels; launched industry-first super white range of shirts.
US Polo Assn: Strong direct channel performance with 35%+ growth in online B2C; continued retail expansion with marquee stores launch.
Flying Machine: Online B2C expanded to other online channels; direct channel contribution improved by 3%+.
Tommy Hilfiger: Launch of TH.com to expand direct channel mix; strong LTL growth led by premiumization.
Calvin Klein: Mid double-digit LTL adjusted for festive shift; 20%+ growth in premium CKU innerwear.

Sales & Profitability: Aspiration to grow revenues at 12-15% with acceleration in adjacent categories growth; operating leverage to aid EBITDA & PAT margins expansion.
Brand Salience: Continued investments in advertisement to drive market share gains.
Direct Channels: Focus on driving business through direct channels; share of direct channels (retail + online B2C) to grow by 100-200 bps.
Store Expansion: Gross opening of ~150 stores, largely through FOFO route; higher net sq. ft. addition compared to FY26.
Working Capital & Return Ratios: Higher free cash flow generation through continued net working capital efficiency and asset-light approach; further improvement in ROCE.
Technology Transformation: Leveraging AI to drive cost efficiencies across functions; leverage analytics and AI to drive front-end effectiveness.

Overall demand remains steady despite shifting festival & online tower events.
Strong brands with direct-to-consumer focus continue to drive higher market share.
External macroeconomic factors like ongoing West Asia conflict, El Nino impact on weather & repo rate changes expected to have inflationary pressures.

Stable demand environment to deliver consistent double-digit revenue growth.
Continue to expand margin led by higher direct channel share & operating leverage.
Continue to expand direct channel share through retail & online B2C expansion.
Deepen leadership in 5 largest apparel categories (shirts, polos, denim, t-shirts & blazer).
Continue focus on scaling adjacent categories.
Build brands of scale & desire through continued marketing investments.
Continue to expand ROCE led by margin expansion and free cash flow generation.