Arvind Fashions Results: How Did This Textile Stock Perform in Q3?

Synopsis: Shares of this retail firm gained 4% after a strong Q3 FY26 performance, driven by 14.5% YoY revenue growth, improved margins, robust direct-to-consumer sales, and healthy retail and online channel momentum.

The shares of this company, which offer apparel, footwear, innerwear, and accessories for men, women, and kids, plus fabrics and custom tailoring services, are in focus after the strong Q3 results announcement 

With a market capitalization of Rs 5,922 crore, Arvind Fashions Ltd’s shares on Wednesday made a day high of Rs 450  per share, up by 5 percent from its previous day’s close price of Rs 428.40 per share. The share has returned 214 percent over the last five years.

Results Highlights

QoQ view: The revenue from operations declined by 2.96 percent to Rs 1,375 crore in Q3 FY26 from Rs 1,417.51 crore in Q2 FY26. Accompanied by a net profit decline of 35.7  percent QoQ to Rs 36.38 crore(excluding exceptional item) in Q3 FY26 from Rs 56.61 crore in Q2 FY26, resulting in an EPS of Rs 1.93  per share in the same period from an EPS of Rs 2.83 per share in Q2 FY26.

YoY view: The revenue from operations grew by 14.3 percent to Rs 1,375 crore in Q3 FY26 from Rs 1,202.76 crore in Q3 FY25. Accompanied by a net profit growth of 21 percent YoY to Rs 36.11crore(excluding exceptional item) in Q3 FY26 from Rs 46.52 crore in Q3 FY25, resulting in an EPS of Rs 1.93 per share in the same period from an EPS of Rs 2.01 per share in Q3 FY25.

Key Highlights

Revenue & profitability: Revenues grew 14.5 percent YoY to Rs 1,377 crore in Q3 FY26, led by strong execution across direct channels. Gross margins expanded by 50 bps to 55.4 percent due to a richer channel mix and COGS efficiencies, while EBITDA rose 18 percent YoY to Rs 195 crore with margins improving to 14.2 percent.

Channel performance: Channel-wise performance remained robust, with retail LTL posting healthy growth of 8.2 percent. The online B2C channel delivered sharp momentum with nearly 50 percent growth, while the wholesale segment continued to record sustained double-digit secondary growth, supporting overall revenue expansion.

Earnings performance: Profitability improved meaningfully during the quarter, with PAT from continuing operations, excluding the Code on Wages impact, rising 65.2 percent YoY to Rs 44 crore. However, reported PAT stood at Rs 26 crore compared to Rs 28 crore in Q3 FY25 due to exceptional adjustments.

Net working capital days remained at healthy levels during the quarter, supported by stable inventory turns, disciplined supply-chain management, and efficient working capital control across channels.

Management outlook: Management reiterated its focus on accelerating growth by strengthening the direct-to-consumer strategy, expanding the retail footprint, driving premiumisation across marquee brands, and scaling adjacent categories to build sustainable long-term value for stakeholders.

Arvind Fashions Limited is a major Indian fashion retailer, part of the larger Arvind Group, known for bringing global brands like Tommy Hilfiger and Calvin Klein to India, alongside its own popular brands like Flying Machine (India’s first denim brand) and US Polo Assn., offering a wide portfolio across various price points through stores, e-commerce, and other channels

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