Arvind Fashions Ltd(ARVINDFASN)

NSE: ARVINDFASNBSE: 542484

₹ 358.2-1.19%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 4,790 crWebsite: www.arvind-fashions.comUpdated: 24 Oct 2026

About

Arvind Fashions Limited is one of India's leading lifestyle companies operating five core brands - U.S. Polo Assn., Tommy Hilfiger, Calvin Klein, Arrow and Flying Machine - spanning premium, mid-premium and youth fashion segments. The company reported FY26 revenue of ₹5,266 crores, growing 14% year-on-year. It sells through 1,030 exclusive brand outlets as of June 2026, with direct-to-consumer channels (retail and online B2C) accounting for 62% of sales in Q1 FY27.^[1][2][3][4]

Brand portfolio

U.S. Polo Assn. is the largest brand, targeting mid-premium consumers; it grew over 25% in Q3 FY26 with retail LTL of 11%, and targets 400+ stores with ~60 stores added in FY26.^[5]
Tommy Hilfiger and Calvin Klein are the company's licensed PVH brands in the premium segment; both returned to growth in Q1 FY27 after absorbing GST rate increases on premium apparel.^[4]
Arrow serves the formal mid-premium segment; its standalone revenue declined ~3% in H1 FY26 due to transitionary MBO destocking, with profitability improvement targeted through merchandising simplification.^[6][3]
Flying Machine is being repositioned as a Gen Z-focused unisex denim fashion brand; it posted double-digit retail LTL and 70% B2C growth in Q4 FY26 after repositioning, and became a wholly owned subsidiary on 29 December 2025.^[3][1]
Adjacent categories beyond men's apparel - footwear, innerwear, womenswear, kidswear - contributed 24% of total business in FY26 and grew over 25% that year.^[1][3]

Key operating metrics

Same-store (like-for-like) retail growth was 11.6% in Q1 FY27, up from 8.1% for full-year FY26 and the 7 - 8% range in prior quarters.^[4][3]
Gross margin reached 56.7% in Q1 FY27, up 90 bps year-on-year, driven by full-price sell-through improvement, lower discounting and channel mix shift.^[4]
Inventory turns stood at ~3.5x in Q1 FY27, down from ~3.6x in Q4 FY26 and ~3.8x in Q2 FY26; management targets recovery to 3.7 - 3.8x over the next 18 - 24 months.^[4][3][6]
Inventory freshness (stock aged under one year) reached an all-time high of more than 85% in Q2 FY26, up from the late-60s/early-70s range three years prior.^[6]
ROCE reached 23%+ in FY26, a multiyear high and the company's stated North Star metric.^[3]

Distribution and store network

Exclusive brand outlet (EBO) count stood at 1,030 as of June 2026, up from 1,025 in Q4 FY26 and 998 in Q2 FY26.^[4][3][6]
Net area addition in FY26 was ~1.43 lakh sq. ft., significantly higher than the prior year; new stores typically range from 1,200 to 2,500 sq. ft. with select marquee and Club A stores in larger formats.^[3][1]
Store expansion is predominantly FOFO (franchisee-owned, franchisee-operated); FY26 targeted approximately 150 gross EBO openings.^[1]
New retail formats include 'Club A', offering an elevated brand experience, and 'Stride', a footwear specialty format.^[1]

Direct-to-consumer and online channel

D2C channel share (retail + online B2C) reached 62% of sales in Q1 FY27, up 380 bps year-on-year and up from 56% in Q4 FY26.^[4][3]
Online B2C grew 38% in Q1 FY27, with its revenue share rising to 18% from 15% a year earlier, as the company pivots away from B2B online channels.^[4]
Online B2C grew 45% for full-year FY26, lifting its share to 14% from 11%; full-year FY26 retail grew 13%.^[3][1]

Operations and supply chain

The company operates 10+ warehouses; its Hoskote facility in Bengaluru received IGBC Platinum Rating for green logistics and warehouse certification in FY26.^[1]
The company has 7,500+ employees and works with 100+ suppliers; its sourcing model is predominantly India-based, providing shorter lead times and better alignment with domestic demand.^[1]

Expansion and capex plans

Management targets net 1.5 lakh sq. ft. of store addition in FY27 through approximately 150 gross EBO openings, largely via the FOFO route.^[4][3]
D2C share is targeted to grow by 100 - 200 bps in FY27, with a medium-term aspiration of 65% D2C share.^[3]
Flying Machine's dedicated dotcom and app are targeted to launch in H2 FY27 as part of the brand's Gen Z denim repositioning.^[4][3]
Gross margin is targeted to reach the high-50s over the next 2 - 3 years, driven by D2C channel growth, COGS efficiencies and reduced discounting.^[3]

Recent developments

On 29 December 2025, AFL acquired Flipkart India Private Limited's 31.25% stake in Arvind Youth Brands Private Limited (Flying Machine), making it a wholly owned subsidiary.^[1]
On 1 October 2026, Arvind Lifestyle Brands Limited subscribed to 1,82,21,574 equity shares of Arvind Youth Brands Private Limited for ₹49,99,99,990.60, increasing its stake from 60.40% to 65.91%.^[7]
The company restructured into a brand-led business unit model in Q1 FY27, with end-to-end P&L ownership per brand and centralised consumer intelligence, digital and AI functions.^[4]
GST rates on premium apparel increased from 12% to 18% in late 2025, causing headwinds for PVH brands (Tommy Hilfiger, Calvin Klein) in Q3 FY26; business stabilised post mid-November 2025 and both brands returned to growth by Q1 FY27.^[5][4]

Market Cap

₹4,790 Cr

High / Low

₹572 / 358

Stock P/E

40.5

Price / Book

5.1

Book Value

₹71

EPS

₹9.2

No. of Shares

13.37 Cr

ROCE

26.2%

ROE

12.9%

OPM

8.6%

Debt / Equity

0.56

Sales

₹5,266 Cr

Net Profit

₹184 Cr

Promoter holding

35.1%

Loading chart…

Signal history

AI Deep Dive

The analysis Screener can't give you

Our models read the latest earnings call, annual report, and financials end-to-end - then grade management, value the business, and flag the risks. Unlock all of it for this company:

Verdict
The headline call - descriptive label, conviction, and the synthesis behind it.
Valuation
Guidance-anchored P&L bridge - worst / average / best multiple cases.
Walk the talk
Did management deliver on past guidance? A commitment-by-commitment scorecard.
Red flags
Forensic and governance risk pointers, severity-ranked.
Balance sheet
Solvency and earnings-quality score.
Concall briefs
Quarter-by-quarter earnings-call briefs - what changed and why.

₹49 unlocks this company for 90 days, ₹299 for a full year - bundles bring it lower. Built on public disclosures - educational, not investment advice.

AI Deep Dive

Verdict

Locked

The headline call - descriptive label, conviction, and the synthesis behind it.

Company data

Financials