Arvind Fashions reports 27% rise in Q2 profit on strong D2C growth

Arvind Fashions Limited (AFL), one of India’s leading casualwear and denim companies, has reported a 27% year-on-year increase in consolidated profit after tax (PAT) to Rs. 38 crore (US $ 4.28 million) for the quarter ended 30th September 2025. The growth was attributed to higher sales across direct-to-consumer channels and improved operating efficiencies, according to the company’s regulatory filing.

Revenue for the quarter rose 11% to Rs. 1,418 crore (US $ 160 million), compared with Rs. 1,273 crore (US $ 143 million) in the same period last year. The increase was driven by an 8.3% like-for-like sales growth and more than 50% growth in the company’s online B2C business.

Gross margins improved by 210 basis points to 52.5%, reflecting a greater contribution from direct retail channels. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 18% year-on-year to Rs. 200 crore (US $ 22.56 million), with the EBITDA margin expanding by 80 basis points to 14.1%. Profit before tax stood at Rs. 87 crore (US $ 9.81 million), up 31% from Rs. 67 crore (US $ 7.56 million) in the corresponding quarter of FY ’25.

For the first half of FY ’26, AFL reported a 64% increase in PAT to Rs. 51 crore (US $ 5.75 million), while total revenue grew 13% to Rs. 2,525 crore (US $ 285 million).

Managing Director and Chief Executive Officer Amisha Jain said the company maintained its growth trajectory during the quarter, supported by steady revenue expansion and operational improvements. She added that recent Goods and Services Tax (GST) reforms were expected to further bolster consumer confidence and spending. Jain noted that AFL would continue to focus on investing in its key brands, expanding retail operations, and strengthening customer engagement through its direct-channel strategy.

The company also reported stable inventory turnover and working capital management during the quarter, with net working capital days maintained at 60, underscoring continued operational discipline and financial stability.