Gross margins expand by 60 basis points (bps) to 55.9 per cent, aided by lower consumer discounting
Marking an improvement, Arvind Fashions, a casual and denim player, has seen its net profit from continuing and discontinued operations surge to Rs 12.57 crore in the first quarter of the current financial year (Q1FY26) from Rs 1.32 crore in Q1FY25. This net profit is attributable to the equity holders of the parent.
The financial results of the company revealed that the revenue from operations surged to Rs 1,107.31 crore in Q1FY26 from Rs 954.84 crore in the corresponding period of the previous fiscal year, making a year-on-year (YoY) growth of 16 per cent. Gross margins expanded by 60 basis points (bps) to 55.9 per cent, aided by lower consumer discounting.
“Q1 FY26 witnessed a bright start to this year with revenue growth reaching 16 per cent. This is a testimony of our conscious efforts of investing in higher marketing to re-energise our industry-leading brands, leading to strong awareness and higher footfalls along with market share gains. Moving ahead, we will continue to focus on our direct channel strategy, resulting in higher bottom line and ROCE,” stated Shailesh Chaturvedi, Managing Director (MD) and Chief Executive Officer (CEO).
The earnings before interest, tax, depreciation and amortisation (EBITDA) of the company rose to Rs 148 crore in Q1FY26 from Rs 123 crore in Q1FY25, clocking a 20.3 per cent growth. The EBITDA margin improved by 50 bps to 13.4 per cent, despite 140 bps higher advertising spends YoY, the company said in an exchange filing.
