Arvind Fashions reports strong Q2 FY22 growth, driven by direct channels

Arvind Fashions Limited reported an 11.3% year-over-year revenue growth to ₹1,418 crores for Q2 FY26, with H1 FY26 revenues reaching ₹2,525 crores, up 13.3% from H1 FY25. This performance was primarily fueled by direct channel outperformance, including 8.3% like-to-like growth in retail and over 50% growth in online B2C business. Gross margins expanded by 210 basis points to 52.5% due to a richer channel mix and reduced consumer discounting.

EBITDA grew by 18.2% to ₹200 crores in Q2 FY26, increasing EBITDA margin by 80 basis points to 14.1%. PBT saw a 31.2% increase to ₹87 crores, and PAT grew by 26.9% to ₹38 crores for the quarter. For the half year, EBITDA reached ₹348 crores, a 19.1% increase, and PAT stood at ₹51 crores, up 63.6%. The company's NWC days remained stable at 60 days, reflecting efficient working capital management despite an early festive season.

The company continues to expand its retail footprint, adding 24 exclusive brand outlets with a net increase of approximately 12.67 lakh sq. ft. Arvind Fashions remains committed to scaling existing brands, investing in marketing, and accelerating retail network expansion through an asset-light approach, aiming for sustained double-digit revenue growth and improved ROCE.