Arvind Fashions Q2 FY27 results: net profit up 19.3% to ₹67.21 crore, revenue up 10.0%

How did Arvind Fashions perform in Q2 FY27?

Arvind Fashions reported consolidated revenue of ₹1,559 crore in Q2 FY27, up 10.0% from ₹1,418 crore in Q2 FY26 and 21.9% from ₹1,278 crore in Q1 FY27. EBITDA rose to ₹216.39 crore from ₹187.30 crore and ₹159.52 crore, respectively, while margin improved to 13.9% from 13.2% and 12.5%.

Consolidated profit before tax was ₹91.39 crore, compared with ₹87.42 crore a year earlier and ₹40.03 crore in the previous quarter. Net profit was ₹67.21 crore, up from ₹56.35 crore and ₹27.61 crore, while profit attributable to owners was ₹48.48 crore. Basic EPS was ₹3.63, against ₹2.81 and ₹0.72.

On a standalone basis, revenue was ₹233.58 crore and net profit was ₹1.41 crore. The company’s filing with the BSE said the board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026.

What changed in Arvind Fashions' costs and profit?

Total expenses rose to ₹1,474 crore from ₹1,343 crore a year earlier, an increase of ₹131.33 crore or 9.8%. Other expenses increased by ₹61.49 crore to ₹532.66 crore, depreciation by ₹11.47 crore to ₹82.76 crore, finance costs by ₹7.63 crore to ₹49.23 crore and employee cost by ₹4.88 crore to ₹90.48 crore. There was no exceptional item.

Other income fell by ₹6.02 crore to ₹6.99 crore from ₹13.01 crore, while tax declined by ₹7.04 crore to ₹23.77 crore from ₹30.81 crore. Profit before tax rose by ₹3.97 crore to ₹91.39 crore, and net profit increased by ₹10.86 crore to ₹67.21 crore. The filing did not state a reason for the movement in other income.

Against Q1 FY27, total expenses increased by ₹228.95 crore, including a ₹50.34 crore rise in other expenses. Employee cost rose by ₹7.16 crore, depreciation by ₹3.95 crore and finance costs by ₹1.54 crore, while other income declined by ₹0.02 crore and tax rose by ₹11.76 crore. Net profit increased by ₹39.60 crore to ₹67.21 crore.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹2,837.33 crore, up 12.4% from ₹2,524.82 crore in H1 FY26, while total income rose 11.7% to ₹2,851.33 crore. Profit before tax increased 4.1% to ₹131.42 crore from ₹126.26 crore.

Net profit for the first half rose 16.8% to ₹94.82 crore from ₹81.21 crore, and EPS increased to ₹4.34 from ₹3.75. The company’s BSE filing said the half-year results were unaudited and had been reviewed by its statutory auditors.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹4,791.5 crore, compared with ₹4,215.78 crore at 31 March 2026. Total equity rose to ₹1,231.07 crore from ₹1,160.51 crore, while borrowings increased to ₹689.77 crore from ₹531.34 crore and cash rose to ₹88.42 crore from ₹50.81 crore.

Inventories increased to ₹1,572.89 crore from ₹1,389.56 crore and trade receivables to ₹844.03 crore from ₹751.58 crore. Trade payables declined to ₹1,033.02 crore from ₹1,387.07 crore.

For H1 FY27, operating cash flow was ₹208.13 crore, compared with ₹119.35 crore a year earlier. Investing cash flow was negative ₹105.25 crore against negative ₹51.84 crore, financing cash flow was negative ₹65.27 crore against negative ₹186.6 crore, and capital expenditure was ₹103.97 crore against ₹54.62 crore.

How has Arvind Fashions done over the last 8 quarters?

Net profit reached ₹67.21 crore in Q2 FY27, above ₹66.34 crore in Q4 FY26 and ₹56.35 crore in Q2 FY26. The lowest result was a net loss of ₹72.49 crore in Q4 FY25, and profit has risen year on year in each of the last two quarters.

EBITDA margin increased to 13.9% in Q2 FY27 from 12.5% in Q1 FY27. The highest margin in the reported series was 14.2% in Q3 FY26, while the lowest was 12.0% in Q1 FY26.

What else did the company announce?

The board approved the formulation, adoption and implementation of the Arvind Fashions Limited Performance-linked Stock Units Scheme – 2026. The filing said the aggregate number of stock options proposed for grant shall not be exercisable into more than 5,50,000 equity shares, subject to shareholder approval.

The board also approved the acquisition of 2,500 equity shares of Arvind Global Capability Center Private Limited, representing 25% of its paid-up equity share capital. The related-party transaction is at an arm’s length basis, with total consideration of Rs. 25,000 at face value of Rs. 10 per share, and completion is indicated by 30 November 2026.

Arvind Global Capability Center was incorporated on 1 April 2026 and will provide centralised business support and shared services, including finance, technology, human resources, procurement, analytics and compliance. No dividend or appointment was disclosed in the same-day filings.

What did Arvind Fashions' management say?

Management said festive like-for-like growth was tracking at nearly high double digits, ahead of expectations, while DTC accounted for 53% of sales. The Madhya Pradesh shirt plant is expected to reach 3 lakh units per month, cover 25-30% of shirt requirements and achieve payback in approximately 3-3.5 years.

Management identified geopolitical disruption and delays in Bangladesh sourcing, rupee depreciation and 5-6% raw-material cost inflation, potential El Niño effects, liquidity changes and broader inflation as risks. Vice Chairman Kulin Alwai said the company would manage pricing and costs proactively to mitigate downside effects and focus on profitable growth and cash flow generation.

How did Arvind Fashions shares react?

The filing was released after market hours. From the price when the filing appeared, the stock fell 3.5% after five minutes, 3.2% after 15 minutes and 3.4% after 30 minutes. It closed the reaction day down 4.2% from the previous close of ₹365.55.

By the next day’s close, the stock was down 3.0% from its pre-results close. On the reaction day, the median move for other Speciality Retail stocks was 1.6%, so Arvind Fashions underperformed the industry by 5.7 percentage points. By the next day’s close, the stock underperformed the industry median by 5.4 percentage points.

Earlier results-day reactions were mixed: the stock rose 9.7% on 6 May 2026 and 8.6% on 3 November 2025, but fell 0.7% on 21 July 2026 and 2.5% on 17 May 2025.

How did other Speciality Retail companies do?

Fifteen other Speciality Retail companies that filed for the quarter were compared with Arvind Fashions. Their median revenue growth was 11.2%, compared with the company’s 10.0% growth, while seven peers grew more slowly than Arvind Fashions and eight grew faster.

Of the 12 peers for which profit was compared, seven reported higher profit. The peer data was recorded as of 6 November 2026.