Arvind Fashions Q1 FY27: Direct channels lead 15.5% revenue growth as margins improve

Revenue from operations was 1,279 crore in Q1 FY27 compared with 1,107 crore in Q1 FY26, a 15.5 percent YoY increase.

EBITDA excl other income increased to 160 crore in Q1 FY27 from 133 crore in Q1 FY26, representing 19.6 percent YoY growth.

PAT from continuing operations declined to 10 crore from 13 crore, and the presentation attributes the decline to lower other income (7 crore vs 15 crore).

Retail was 45 percent, wholesales (MBO plus department stores) 23 percent, online B2C 18 percent, and online B2B and others 14 percent.

Inventory was 1,644 crore (105 days), receivables 684 crore (52 days), payables 1,312 crore (93 days), and net working capital was 1,016 crore (65 days).

Management states an aspiration to grow revenues at 12 to 15 percent in FY27, increase direct channel share by 100 to 200 bps, and gross open about 150 stores largely through FOFO.

The presentation highlights early discounting and EOSS in the market, increased minimum wages and fuel costs, West Asia conflict impacts on inflation and sourcing, rupee strength affecting imports and capex, and El Nino-related inflation risks.