Arvind Fashions' Q2 FY 2025-26 Quarterly Results

Result Summary

• Arvind Fashions Ltd reported a 27.5% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 11.7%.
• Its expenses for the quarter were up by 24.0% QoQ and 10.7% YoY.
• The net profit increased 126.7% QoQ and increased 25.1% YoY.
• The earnings per share (EPS) of Arvind Fashions Ltd stood at 2.8 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

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Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Arvind Fashions Ltd is a prominent player in the apparel retail industry in India, primarily known for its portfolio of fashion brands. The company's business model focuses on retailing and distributing a diverse range of clothing and accessories under various internationally acclaimed and in-house fashion labels. Known for adapting global fashion trends to the Indian market, Arvind Fashions caters to a wide demographic, offering premium to mass-market products. The company has been actively involved in expanding its brand presence through both brick-and-mortar stores and digital platforms. While specific recent developments are not available in the provided data, the apparel retail sector in India is generally characterized by dynamic trends and consumer preferences which could influence the company's strategy and performance.

Revenue

During Q2FY26, Arvind Fashions Ltd reported a total income of ₹1430.52 crores, reflecting a significant quarter-over-quarter (QoQ) increase of 27.5% compared to Q1FY26's ₹1121.86 crores. Year-over-year (YoY), there was an 11.7% increase from Q2FY25's total income of ₹1280.37 crores. This growth in revenue suggests a positive trajectory in sales, possibly due to increased consumer demand or successful promotional strategies. The increase in revenue both QoQ and YoY indicates a potential expansion in market reach or improvement in sales efficiency during this period.

Profitability

The profitability of Arvind Fashions Ltd improved notably in Q2FY26. The Profit Before Tax (PBT) for the quarter was ₹87.42 crores, showing a substantial QoQ growth of 125.1% from ₹38.84 crores in Q1FY26 and a YoY increase of 31.3% from ₹66.60 crores in Q2FY25. The tax expense for Q2FY26 was ₹30.81 crores, which also saw a significant rise of 124.7% QoQ and 43.6% YoY. Consequently, the Profit After Tax (PAT) grew to ₹56.35 crores, a remarkable 126.7% increase from the previous quarter and a 25.1% rise from the same quarter last year. This upward trend in profitability indicates efficient cost management and improved operating leverage. Additionally, the Earnings Per Share (EPS) rose to ₹2.80, a significant improvement from both the previous quarter's ₹0.94 and the previous year's ₹2.21, highlighting enhanced shareholder value during this period.

Operating Metrics

The total expenses for Arvind Fashions Ltd in Q2FY26 amounted to ₹1343.10 crores, marking a 24.0% increase QoQ from the ₹1083.02 crores recorded in Q1FY26 and a 10.7% increase YoY from ₹1213.77 crores in Q2FY25. The rise in expenses alongside revenue growth suggests scaling operations and increased activities, possibly to support higher sales volume. The operating metrics demonstrate a balance between cost management and revenue generation, with expenses rising in tandem with income. This alignment may indicate effective operational strategies that have been implemented during the quarter. The consistent management of expenses relative to income growth is a crucial aspect of sustaining profitability and operational efficiency in the apparel retail industry.