Arvind Fashions Limited — Q2 FY26
Arvind Fashions delivered another quarter of double-digit revenue growth, with revenue up 11.3% YoY to ₹1,418 crore and EBITDA up 18.2% to ₹200 crore, marking the highest ever s...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
63%Questions answered3Evaded / deflected12Questions auditedMixedNumbers vs filing
Partial answer
High priority
How did different brands perform and what is the festival read?
Asked by Deep Sha, Immediate Securities
Gave specific growth for US Polo but only qualitative for others.
no specific numbers for arrow/flying machinequalitative only
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Question
if you can call out how the different brands have performed during the quarter... and secondly any any read on the festival.
Amisha (CEO)
US Polo has clocked a extremely strong double-digit growth which is close to 20%... arrow and flying machine are also sort of driving and are going in the right direction.
Evasive
Medium priority
What are key learnings from first few months and strategies for H2?
Asked by Deep Sha, Immediate Securities
Did not address learnings; gave generic forward-looking strategy.
no specific learnings mentionedgeneric strategy talk
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Question
how has been the experience that are in session what are the key learnings... and what are the key strategies which you will work upon in the Valentine.
Amisha (CEO)
we will double down on our portfolio of five brands... drive sharp brand positioning, differentiated products... continue to double down on diversification...
Answered
High priority
Why strong SSD growth and gross margin expansion not flowing to EBITDA?
Asked by Priyank, Wam Capital
Explained specific cost items (commission, marketing) that offset gross margin gains.
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Question
with a strong SSD growth of 8%... coupled with gross margin expansion of 200 pips... why don't we see that percolating down to the beta margin expansion?
Gaur (CFO)
large part of the growth came from direct channels... retail and online B2C both have an attendant commission as a cost... we also continue to invest in marketing which was higher again by 20 basis points.
Answered
Medium priority
Why drastic shift in employee cost over last two quarters?
Asked by Priyank, Wam Capital
Quantified salary correction and explained one-time costs.
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Question
Why why there is a drastic shift in the employee cost over last two quarters that we witnessed?
Gaur (CFO)
this July there has been of course a salary correction for the company... around 10%... rest of the cost is largely due to a change over in the management and there are certain one-time fixed cost.
Partial answer
Medium priority
What is the long-term trend and strategy for wholesale channel?
Asked by Priyank, Wam Capital
Addressed recent trends but did not explain flat three-year trend.
no three-year trend datarestocking not quantified
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Question
on the wholesale... on the three-year basis that it has not grown it has remained flat... where was the restocking element coming into it... what would be the strategy?
Amisha (CEO)
we have seen high consumer sales... department stores strong growth... MBO channel marginal impact due to GST transitions... we expect a high single-digit growth going forward.
Evasive
High priority
Any key changes to unmet targets and margin expansion outlook?
Asked by Priyank, Wam Capital
Did not address unmet targets; deferred to future strategy.
deferred to future strategyno specific changes to targets
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Question
there have been few targets that we have been chasing... any key changes that you think that you will have to do... how should we think of a margin expansions?
Amisha (CEO)
we're in the process of building out our three-year strategy... present to the board in the next four to five months... we would like to maintain our EBITDA delivery in zone of about 50 to 80 basis points.
Answered
High priority
Why did standalone entity report 3% revenue decline in H1?
Asked by Ain, Motil
Provided specific revenue figure and explained reason.
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Question
the standalone has recorded a 3% revenue decline on a 1 to 1 basis... what would be the reason behind that?
Gaur (CFO)
for the first half of FY26 the standalone entity delivered 350 crores of revenue... primary reason... delay in the billing to the wholesale channels... quarter two we were impacted by the wholesale billing.
Answered
Medium priority
Which brands are store closures pertaining to?
Asked by Ain, Motil
Clarified closures are across brands and due to size rationalization.
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Question
we are adding good number of store additions but the store closes were also there... to which brand are these stores pertaining to?
Gaur (CFO)
the stores that have been closed are the small stores... they are across all the brands... we are rationalizing our store size.
Partial answer
Medium priority
What is the outlook and mid-term returns for footwear segment?
Asked by Ain, Motil
Gave growth rate and ambition but no return metrics.
no return on capital figuresgrowth rate qualitative
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Question
can you throw some light on the footwear segment... what's the outlook there? What is your midterm and long-term returns for that segment?
Amisha (CEO)
this is a business now which has come back to high 20s sort of growth rate... we would actually expect to hope to double the size of the company of footwear in the next three years.
Answered
Medium priority
Is premium segment growth driven by tax cuts or other factors?
Asked by Ashto, ICICI Securities
Acknowledged macro factors and added internal drivers.
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Question
is my understanding overall correct about the premium segment... apart from that is there any other consumer sentimental shift that is happening?
Amisha (CEO)
there has been a macro impact from the tax cuts... we've been premiumizing across our brands... product innovation is a key lever.
Answered
High priority
What is the optimum channel mix and profitability across channels?
Asked by Ashto, ICICI Securities
Provided target mix and profitability range.
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Question
what would be the optimum mix between these channels especially the retail... is it possible to give a broad profitability across the channels?
Amisha (CEO) and Gaur (CFO)
our aspiration is to take it from today... about 50% share of business... to about 50 to 70% range... channel level profitability range between 20 to 25%.
Evasive
Medium priority
What is the EBITDA improvement for arrow and flying machine in H1?
Asked by Nihal Mahes, HSBC
Refused to share specific improvement figures.
no specific numbers givenonly qualitative guidance
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Question
what has been the improvement why in the first half for these two brands... what is the overall improvement machine for the first half if it's possible to share that part.
Gaur (CFO)
I won't get into exact specific numbers but broadly we had said that at a company level operating leverage has to be 80 to 100 bps these two brands need to have a certain order of magnitude above that.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Overall portfolio growth of 11.3% | 11.3% | 11.3% | Matches filing |
| US Polo growth close to 20% | 20% | 11.3% | Overstated vs filing |
| Gross margin expansion of 200 bps | 200 bps | 80 bps | Overstated vs filing |
| Standalone H1 revenue 350 crores | ₹350 cr | ₹1,418 cr | Understated vs filing |
| Footwear growth high 20s | 28% | 11.3% | Overstated vs filing |
| H1 EBITDA margin 12.6%, H2 target 14.3% | 12.6% | 13% | Matches filing |
| H2 EBITDA margin target 14.3% | 14.3% | 13% | Overstated vs filing |
| B2C grew almost 50% | 50% | 11.3% | Overstated vs filing |
| Online B2B degrew 10% | -10% | 11.3% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.