Arvind Fashions Q3 Profit Declines To ₹26 Crore, Revenue Rises 14.5% To ₹1,377 Crore, Margin Improves Despite Wage Provision

Arvind Fashions Q3 Profit Declines To ₹26 Crore, Revenue Rises 14.5% To ₹1,377 Crore, Margin Improves Despite Wage Provision

Arvind Fashions Ltd reported a 6.8 percent year-on-year decline in consolidated net profit to Rs 26.1 crore in Q3 FY26, impacted by a Rs 29 crore one-time provision under the new labour code. Revenue from operations rose 14.5 percent YoY to Rs 1,376.6 crore. Compared to Rs 56.3 crore profit in Q2 and Rs 36.1 crore, the quarterly earnings were softer, though EBITDA continued its growth trajectory.

Tresha DiasUpdated: Wednesday, January 28, 2026, 01:20 PM IST
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Mumbai: In Q3 FY26, Arvind Fashions posted consolidated revenue of Rupees 1,376.6 crore, up from Rupees 1,202.8 crore in Q3 FY25, reflecting a 14.5 percent year-on-year rise. EBITDA (excluding other income) rose 18 percent YoY to Rupees 195 crore, aided by improved gross margins and robust direct-to-consumer sales. However, net profit from continuing operations came in lower at Rupees 26.1 crore, down from Rupees 28 crore a year ago, due to a Rupees 29 crore wage-related provision. Quarterly revenue showed a marginal decline from Rupees 1,417.5 crore in Q2 FY26, and net profit halved from Rupees 56.3 crore sequentially.

Sequential growth moderates:

QoQ total income dipped 3.4 percent from Rupees 1,430.5 crore to Rupees 1,382.5 crore. Expenses reduced to Rupees 1,299.9 crore from Rupees 1,343.1 crore. While margins expanded, the wage-related exceptional item dented profitability. PAT excluding the one-time charge was Rupees 44 crore, reflecting a 65.4 percent YoY growth. EPS (basic) dropped to Rupees 1.91 from Rupees 2.81 in Q2. Inventory turns remained stable at 3.7x.

Nine-month performance remains strong:

For 9M FY26, revenue from operations stood at Rupees 3,901.4 crore, up 13.7 percent YoY. PAT before exceptional items was Rupees 94 crore, up 63.3 percent from Rupees 58 crore in 9M FY25. EBITDA rose 16.3 percent YoY to Rupees 515 crore. The company remains focused on direct channel expansion, retail network growth, and working capital efficiency as part of its long-term strategy.

Disclaimer: This report is based on publicly disclosed financial results by Arvind Fashions. It is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell.   

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