Arvind Fashions Ltd, one of India’s largest branded fashion retailers with labels such as US Polo Assn., Tommy Hilfiger, Calvin Klein, Arrow and Flying Machine in its portfolio, reported a 24% year-on-year decline in first-quarter net profit despite a 15% rise in revenue.
The profit attributable to equity holders of the parent declined to ₹9.57 crore in the April-June quarter of FY27 from ₹12.57 crore in the corresponding period last year. Revenue from operations, however, increased 15% to ₹1,278 crore, driven by higher marketing investments, stronger brand engagement and continued traction across direct consumer channels.
The Ahmedabad-based company said it successfully navigated an inflationary environment marked by the West Asia conflict, higher petroleum prices, elevated foreign exchange rates and rising minimum wages across several states.
Amisha Jain, Managing Director and CEO of Arvind Fashions said, “We have begun the year with a strong operating performance, delivering revenue growth of 15.5% and EBITDA growth of 19.6%. This performance is particularly noteworthy given the inflationary environment shaped by the West Asia conflict, higher petroleum prices, elevated forex rates and minimum wage increases across several states, and reflects the resilience of our brand portfolio and the discipline of our operating model.”
While profitability at the bottom line remained under pressure, the company’s operating performance showed improvement. EBITDA (excluding other income) rose 19.6% year-on-year to ₹160 crore from ₹133 crore in the year-ago quarter, with the EBITDA margin expanding 44 basis points to 12.5%.
The company said the decline in net profit was largely due to lower other income compared with the first quarter of FY26. Arvind Fashions continued to see strong momentum in its consumer-facing businesses during the quarter. The company reported like-to-like growth of 11.6% across its direct channels, while its online B2C business grew about 38% year-on-year. Direct channels contributed 62% of overall revenue, highlighting the company’s increasing focus on owned retail and digital platforms.
The company also reported improvement in profitability metrics at the operating level, with gross margins expanding 90 basis points to 56.7%. The improvement was supported by higher full-price sell-through and reduced discounting. Inventory freshness reached an all-time high during the quarter, while net working capital remained stable at 65 days.
The company has been focusing on strengthening its direct channels, improving inventory efficiency and increasing brand investments to drive sustainable growth. Looking ahead, the company said its focus remains on accelerating profitable growth across its marquee brands, deepening consumer engagement through higher brand investments and increasing the contribution of direct channels. It added that it is closely monitoring the impact of geopolitical developments and cost pressures, while implementing mitigation measures to protect business performance.
Published on July 21, 2026
