Arvind Fashions scales premium portfolio as FY26 revenues hit Rs 5,266 Crore

Arvind Fashions Limited (AFL) has reported a decisive financial turnaround for FY26 with consolidated revenue reaching Rs 5,266 crore, a 14 per cent Y-o-Y increase. This growth trajectory was underpinned by a robust 43 per cent rise in the online direct-to-consumer (D2C) segment and a 13.4 per cent rise in retail channel sales. The company successfully transitioned from a loss-making position to a consolidated profit after tax (PAT) of Rs 124 crore, reflecting a significant recovery from the Rs 34 crore loss recorded in FY25.

Strategic margin expansion and category depth

Operational efficiencies and a shift toward full-price sell-throughs drove gross margins up by 91 basis points to 54.4 per cent. Amisha Jain, Managing Director and CEO attributed this ‘compounding strength’ to superior retail execution and the scaling of adjacent categories. Notably, US Polo Assn maintained its dominance, while footwear, innerwear, and kidswear clocked growth rates exceeding 25 per cebt. This diversification strategy, coupled with the full acquisition of the Flying Machine brand from Flipkart for Rs 135 crore, has fortified AFL’s grip on the high-margin youth and premium segments.

Operational resilience and market outlook

Despite inflationary headwinds in raw materials and petroleum-linked inputs, AFL improved its Return on Capital Employed (ROCE) to 23.5 per cent, up from 20.4 per cent the previous year. The company’s ‘omni-channel’ infrastructure now integrates over 1,025 retail outlets with deep digital penetration. Our focus remains on increasing the share of direct channels to 60 per cent over the next three years, Jain noted, signaling a long-term shift away from traditional wholesale reliance toward high-engagement brand experiences.

Arvind Fashions is India’s leading powerhouse of international apparel brands, managing a prestigious portfolio including US Polo Assn., Tommy Hilfiger, and Calvin Klein. Specializing in premium casual wear and denim, the company is aggressively expanding into footwear and innerwear. AFL aims for mid-teen revenue growth in FY27, leveraging its 1,000+ store network and dominant presence in the Tier-I and Tier-II Indian markets.