Arvind Fashions turns profit in Q4, declares ₹1.60 dividend

Arvind Fashions Limited (AFL), a leading denim and casual wear player, reported a consolidated net profit of ₹47 crore in Q4FY26, reversing a ₹93 crore loss in the same quarter last year, driven by strong like-to-like growth and robust performance across direct channels and core apparel brands.

Revenue for the quarter rose ~15 per cent year-on-year to ₹1,365 crore, supported by 7.8 per cent like-to-like growth and expansion in direct-to-consumer business, reflecting sustained demand in the denim and casual wear segment.

The Ahmedabad-based company’s board has recommended a final dividend of ₹1.60 per equity share for FY26, subject to shareholder approval.

For the full year, AFL posted 14% per cent revenue growth to ₹5,266 crore, while net profit stood at ₹123 crore versus a ₹36 crore loss in FY25, indicating improved operating leverage and stronger brand-led execution.

Managing Director and CEO Amisha Jain said FY26 reflected “quality, consistency and compounding strength of earnings,” driven by brand momentum and capital efficiency gains.

She added that growth will be driven by expansion into adjacent categories, deeper brand investments and scaling of direct channels, supported by technology, AI-led initiatives and supply chain improvements.

On a comparable basis, profit from continuing operations rose 56 per cent to ₹42 crore, excluding one-off impacts from the previous year, underscoring underlying earnings strength.

However, the company flagged macro headwinds, including geopolitical uncertainty, inflationary pressures and supply-side constraints, with risks emerging from higher raw material costs, fuel inflation, currency volatility and shortages in petroleum-linked inputs such as natural gas, which may impact production and input costs.