30 January 2026, Mumbai
Amidst a shifting retail landscape in early 2026, Arvind Fashions (AFL) has demonstrated the high-growth potential of direct-to-consumer (D2C) ecosystems. The company reported a revenue of Rs 1,377 crore in Q3 FY26, representing a 14.5 per cent Y-o-Y expansion. This performance was anchored by a 50 per cent growth in online B2C sales, illustrating a successful transition toward digital-first engagement as the Indian apparel market moves toward a projected $80 billion valuation this year.
Scaling profitability via channel mix optimization
The company’s gross margins expanded by 50 basis points to 55.4 per cent, a result of a richer channel mix and disciplined cost-of-goods-sold (COGS) management. EBITDA rose 18 per cent Y-o-Y to Rs 195 crore, with margins improving to 14.2 per cent. This operational leverage was particularly evident in the retail segment, where like-to-like (LTL) growth reached 8.2 per cent. As noted by Manish Ranade, Managing Director, Lectra India, digital transformation has become a ‘strategic imperative’ for maintaining competitiveness in a volatile global supply chain environment.
Strategic infrastructure and efficiency mandates
AFL strategically added 43 EBOs during the quarter, bringing its net retail footprint to approximately 13.07 lakh sq ft. This physical expansion, paired with ‘Agentic Commerce’ protocols, has allowed the firm to maintain healthy net working capital days through optimized inventory turns. While reported profit after tax (PAT) stood at Rs 26 crore due to exceptional labor code adjustments, PAT from continuing operations climbed a remarkable 65.2 per cent YoY to Rs 44 crore. This trajectory suggests that integrated production and distribution platforms are successfully insulating top-tier retailers against rising input costs and shifting international trade alignments.
Arvind Fashions is India’s leading casual and denim player, managing an elite portfolio including U.S. Polo Assn., Tommy Hilfiger, and Arrow. The company focuses on the high-growth mass-premium segment, targeting a 35 per cent digital revenue share by 2027. Established as a spinoff from Arvind Ltd, AFL is now an independent powerhouse in organized retail.
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