Arvind Fashions reported a multi-fold jump in profit for the June quarter, driven by steady demand across its apparel and accessory brands. Net profit for Q1FY26 stood at Rs 13 crore, up from Rs 1 crore in the same period last year. Net sales rose 16% year-on-year to Rs 1,107 crore, compared to Rs 955 crore a year ago, led by a stronger push through direct channels. This resulted in an 8.1% like-for-like (same-store) sales growth in Q1, along with over 30% growth in online B2C channels, the company said on Monday.

Stronger Margins

Gross margins expanded by 60 basis points year-on-year to 55.9%, aided by lower consumer discounting. Arvind Fashions sells an array of brands, including Arrow, Calvin Klein, Tommy Hilfiger, US Polo Assn., and Flying Machine. One basis point is one-hundredth of a percentage point.

Earnings before interest, tax, depreciation, and amortisation (Ebitda) rose 20.3% year-on-year to Rs 148 crore in Q1 from Rs 123 crore reported last year, supported by operational efficiencies. Ebitda margins improved by 50 bps y-o-y to 13.4% in Q1, despite 140 bps higher advertising spends year-on-year.

“Q1 FY26 witnessed a bright start to the year,” Shailesh Chaturvedi, MD & CEO, Arvind Fashions, said. “We re-energised our brands by investing higher in marketing, leading to stronger awareness and higher footfalls along with market share gains. We will continue to focus on our direct channel strategy for the future,” he said.

Expansion Plans

Arvind Fashions is also expected to focus on expanding its retail presence and optimising costs to drive sustained growth, sector experts said.

Exclusive brand outlet count stood at 987 at the end of the June quarter, with plans to open 150 stores in FY26, the company said.

The retailer is also looking to grow revenue at 12-15% for the full-year of FY26, with a focus on inventory control, acceleration of growth in adjacent categories and operating leverage.