Arvind Fashions Limited Earnings Summary — Q1 FY2027
Arvind Fashions Posts 15.5% Revenue Growth and 44bps Margin Expansion Amid West Asia Inflationary Pressures
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 6.3% sequentially in Q1 FY2027.
- Revenue of ₹1,279 Cr is 15.5% higher year-on-year.
- Revenue has compounded at 7.2% annualised over the last 10 quarters.
- Net profit of ₹10 Cr is 23.9% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -37.3% annualised across the period.
- Operating margin stands at 12.5% in Q1 FY2027.
- Operating margin expanded by 44 bps year-on-year.
- Over the last two years operating margin has expanded by 38 bps.
- PBT margin is 3.1%.
- Expense growth of 14.9% remained below revenue growth of 15.5%.
- Operating profit of ₹160 Cr is 19.6% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 53/100 (Moderate) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 1,279 | 1,365 | 1,377 | 1,418 | 1,107 | 1,189 | 1,203 | 1,273 | 955 | 1,094 |
| Expenses | Stable | 1,119 | 1,176 | 1,182 | 1,230 | 974 | 1,030 | 1,037 | 1,111 | 839 | 959 |
| Operating Profit | Improving | 160 | 189 | 195 | 187 | 133 | 159 | 166 | 162 | 116 | 135 |
| Operating Margin | Stable | 12.5% | 13.8% | 14.2% | 13.2% | 12.0% | 13.3% | 13.8% | 12.8% | 12.1% | 12.3% |
| Other Income | Volatile | 7 | 13 | -23 | 13 | 14 | 11 | 8 | 7 | 8 | 12 |
| Interest | Improving | 48 | 45 | 43 | 42 | 41 | 39 | 40 | 39 | 38 | 35 |
| Depreciation | Improving | 79 | 75 | 75 | 71 | 69 | 65 | 65 | 64 | 61 | 59 |
| Profit Before Tax | Volatile | 40 | 82 | 53 | 87 | 39 | 66 | 67 | 66 | 24 | 53 |
| Tax | Volatile | 12 | 15 | 17 | 31 | 14 | 139 | 21 | 21 | 10 | 13 |
| Net Profit | Volatile | 10 | 47 | 26 | 37 | 13 | -93 | 27 | 30 | 1 | 24 |
| Net Margin | Volatile | 0.8% | 3.4% | 1.9% | 2.6% | 1.1% | -7.8% | 2.2% | 2.3% | 0.1% | 2.2% |
Key Takeaways
- 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 Guidance
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.
Sentiment Shift
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.
Outlook
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.
From the Annual Report (Key Quotes)
“This performance is particularly noteworthy given the inflationary environment... and reflects the resilience of our brand portfolio.”
“Inventory freshness is at all-time high, and NWC days remained stable at 65 days.”
“Our focus remains on accelerating profitable growth across our marquee brands and deepening consumer engagement.”
Official Quarterly Documents
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This summary is AI-generated from Arvind Fashions Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.