Arvind Fashions Q3 Profit Down 22.4% to Rs 36.11cr

New Delhi, Jan 28 (PTI) Arvind Fashions Ltd, a leading player in the casual and denim segment, on Wednesday reported a decline of 22.4 per cent in consolidated net profit at Rs 36.11 crore for the December quarter of FY26 on year-on-year basis on account of exceptional items arising from the cost of implementing the new labour code

The company had posted a net profit of Rs 46.52 crore for the October-December period a year ago, according to a regulatory filing from Arvind Fashions Ltd (AFL).

AFL has recognised a one-time incremental provision towards gratuity and compensation absences payable to its own employees and contract workforce, aggregating to Rs 29.01 crore, which has been mentioned as exceptional items.

Its Profit before exceptional items and tax was up 20.37 per cent to Rs 82.54 crore in the December quarter.

AFL's revenue from operations was up 14.45 per cent at Rs 1,376.58 crore in the December quarter of FY26 from Rs 1,202.76 crore in the corresponding period of the previous fiscal.

Its "revenues witnessed a consistent strong growth led by direct channels resulting in overall growth," said AFL in its earnings statement.

Moreover, a continued focus on direct channels resulted in delivering strong retail LTL growth of 8.2 per cent and 50 per cent growth in the online B2C channel, it said.


In the December quarter, "Gross margins expanded by 50 bps to 55.4 per cent, aided by richer channel mix & COGS improvement," it said.

AFL's total expenses in the December quarter stood at Rs 1,299.93 crore, up 13.74 per cent.

Its total income, which includes income from other sources, was at Rs 1,382.47 crore, up 14.11 per cent in the December quarter of FY26.

Commenting on the results, MD & CEO Amisha Jain said: "Q3 FY26 marked another strong quarter for us, with revenue growth of 14.5 per cent, driven by consistent execution across our direct-to-consumer channels."

AFL operates retail outlets of leading global brands such as U.S. Polo Assn., Arrow, Tommy Hilfiger, Calvin Klein and Flying Machine.

Over the outlook, he said: "As we move forward, our focus remains on accelerating growth across our marquee brands by strengthening our direct channel strategy, expanding our retail footprint, driving premiumisation, and scaling adjacent categories to build long-term value for our stakeholders."

Shares of Arvind Fashions Ltd on Tuesday were trading at Rs 446 on BSE, up 4.11 per cent. PTI KRH KRH DR

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