ARVINDFASN
Micro CapArvind Fashions Limited
Consumer
Arvind Fashions Limited operates a portfolio of apparel brands including USPA, PVH brands (Tommy Hilfiger, Calvin Klein), Arrow, and Flying Machine. The company focuses on premiumization and expanding its direct-to-consumer (D2C) channels, aiming for profitable growth and improved return on capital employed.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 35/100Rev +15% YoY · margin expansion
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,365 Cr | +14.8% | -0.9% |
| EBITDA | ₹189 Cr | +18.9% | -3.1% |
| Operating margin | 14.0% | +100 bps | +0 bps |
| PAT | ₹66 Cr | NDF | +83.3% |
| PAT margin | 4.8% | +1090 bps | +223 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Arvind Fashions reports strong Q4 and FY26 performance with 14.8% revenue growth in Q4, 62% PAT growth for FY26, and ROCE exceeding 23%, driven by D2C channels and retail LTL.
The company delivered impressive growth and profitability, surpassing FY26 objectives. Strong D2C momentum and consistent retail LTL are key drivers. Management projects sustained mid-double-digit growth and margin expansion for FY27, despite macro uncertainties, indicating a clear strategic path and execution focus.
Compounding D2C Engine
Direct channels now account for 56% of sales, up 300 basis points year-on-year. Online B2C alone grew 40% in Q4.
Portfolio Diversification
Aim to deepen leadership in menswear (5 largest categories) while doubling down on adjacencies like footwear and innerwear (24% of business).
Sharper Brand Positioning
Flying Machine sharply positioned as a unisex denim-anchored, on-trend youth brand, clocking double-digit retail LTL and 70% B2C growth.
Data, Analytics & AI Transformation
Investments target leveraging AI for cost efficiencies and analytics/AI for front-end effectiveness (retail excellence, pricing, assortment, marketing).
EBO Additions (Q4)
50 Exclusive Brand Outlets (EBOs) were added in the quarter.
Retail Space Addition (FY26)
Added more than 1.4 lakh net square feet of retail space in FY26.
Planned Retail Space Addition (FY27)
Expect to drive about 1.5 lakh net square feet addition over the next fiscal year across our portfolio.
Supportive Government Measures
Government measures around GST, interest rates, and income tax have supported demand.
Premiumization Trend
Premiumization has been a consistent trend across our brands, paying off well while ensuring value at good prices.
Geopolitical Situation
The West Asia situation is a watch item for us.
Input Cost & Forex Pressure
Expect mild pressure on certain raw materials, forex, and capex over the medium term.
Consumption Slowdown Risk
Risk of a consumption slowdown due to supply-led inflationary pressures.
Consumption Slowdown
Management expects a potential risk of a consumption slowdown due to inflationary pressures.
Raw Material & Forex Volatility
Mild pressure on raw materials and forex is expected; company is actively monitoring and hedging where required.
Store Closures
Expect approximately 5% store closures going forward as part of the ongoing retail journey.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both quarterly (Q4) and full-year (FY26) results are provided, offering insights into recent momentum and the overall annual trajectory of strategic execution and financial performance.
Revenue Growth
Q4 revenue grew 14.8% with NSV at INR1,365 crores. Full-year FY26 revenue grew 14%.
EBITDA Growth
EBITDA grew by 19% in Q4 with a 50-bps margin expansion. FY26 EBITDA margin is at 13.4%, up 40 basis points year-on-year.
PAT Growth (comparable basis)
PAT on a comparable basis has grown by 56% in Q4 and 62% in FY26.
Return on Capital Employed (ROCE)
Achieved the milestone of generating more than 23% return on capital employed in FY26, a multiyear high.
FY27 Outlook
Reasonably confident of sustaining mid-double-digit growth in fiscal '27 with 30 to 40 basis points of EBITDA margin expansion.
D2C Share Target
Vision to take the share of D2C to 65%, with each brand having its own dotcom and app live this fiscal year.
Gross Margin Direction
Directionally working on delivering towards high 50s gross margin in the next 2 to 3 years, driven by full-price sell-throughs and COGS improvement.
Debt Reduction Goal
Primary objective is to reduce term loan, then working capital financing, aiming for net debt zero in 9 to 12 months (excluding one-off Flipkart transaction).
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| EBITDA Margin Expansion | 40 bps (FY26) | Sustaining 30-40 bps expansion in FY27 despite anticipated cost pressures and marketing investments. |
| D2C Share of Sales | 56% | Progress towards the 65% target and successful launch of brand-specific dotcoms and apps in FY27. |
| Retail LTL Growth | 8.1% (FY26) | Ability to sustain 7-8% like-for-like growth in FY27, with an equal split between pricing and volume. |
| Inventory Management | Inventory days increased, but freshness at all-time high. | Improvement in inventory turns to 3.7x-3.8x, balancing D2C channel mix shift and early inventory inwards. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
46NeutralSMA20 -1.5% / mo
Technical chart
ARVINDFASNdaily · 1Y-9.6%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 48.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 48 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 15% off 52W high · 24% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 36.6%.
- Growth contributes 15/25 to the score.
- Quality contributes 10/20 to the score.
Main drags
- Cash flow is weaker at 3/10; verify the latest quarterly trend.
- Valuation is weaker at 11/30; verify the latest quarterly trend.
- Balance sheet is weaker at 6/15; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 53rd percentile of the scored universe and 52nd percentile within Consumer. No major sub-score weakness stands out.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 2 recent quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Consumer: 52nd pctile, median 67 · Micro: 36th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸6 years of positive FCF.
- ▸8/8 recent quarters had positive YoY revenue growth.
- ▸OPM spread across recent quarters is 2%.
Trust risks
- ▸2 recent quarters had PAT decline worse than 25% YoY.
- ▸Debt/equity is 1.42.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 46.10
- P/B
- 6.57
- EV/EBITDA
- 7.57
- Market Cap
- 6198.00Cr
Profitability
- ROE
- 14.10%
- ROCE
- 18.90%
- ROA
- 4.36%
- Dividend Y
- 0.34%
Growth (CAGR)
- Revenue 5Y
- 19.00%
- EPS 5Y
- 17.00%
- Revenue 3Y
- 9.00%
- EPS 3Y
- 53.00%
Balance Sheet
- Debt/Equity
- 1.42
- Interest Coverage
- 4.15×
- Altman Z
- 3.31
- Book Value
- 70.60
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 6/5
- OCF
- —
- EPS TTM
- 9.17
Shareholding
- Promoter Hold
- 35.10%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 46%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.