Arvind Fashions Limited Earnings Summary — Q1 FY2027

• Revenue grew 15.5% YoY to ₹1,279 Cr, significantly supported by a 11.6% Like-to-Like (LTL) retail growth and 38% growth in online B2C channels.
• Gross margins expanded by 90 bps to 56.7% due to higher full-price sell-through and reduced discounting across major brands.
• EBITDA (excluding other income) rose 19.6% YoY to ₹160 Cr, reflecting strong operating leverage despite rising minimum wages and fuel costs.
• Net Profit witnessed a marginal dip to ₹10 Cr from ₹13 Cr YoY, primarily attributed to significantly lower other income compared to Q1 FY26.
• Direct channels (Retail + Online B2C) now contribute 62% of total revenue, up from 59% in the prior year period.
• Inventory health is at an all-time high with Net Working Capital (NWC) stable at 65 days and inventory turns maintained at 3.5x.
• Adjacent categories (Footwear, Innerwear, etc.) witnessed robust growth exceeding 25% YoY, becoming a primary growth lever for US Polo Assn. and other brands.

Management targets 12-15% revenue growth for FY27 with a focus on increasing the share of direct channels by 100-200 bps. Plans include expanding the retail footprint by opening ~150 stores (predominantly FOFO model) and driving store efficiency through AI-led pricing and assortment analytics.

Stable

While net profit dipped due to non-operating factors, the core business engine showed double-digit expansion in revenue and EBITDA margins despite macro-economic volatility.

Optimistic regarding demand stability but cautious of external inflationary pressures from the ongoing West Asia conflict and fuel price volatility; mitigation involves India-based sourcing and potential price hikes.