Arvind Fashions Ltd Q3 FY26 – ₹1,377 Cr Revenue, ₹195 Cr EBITDA, Debt Still Wearing Skinny Jeans


1. At a Glance – Fashion Show with a Balance Sheet Hangover

Arvind Fashions Ltd (AFL) currently struts the market runway with a market cap of ₹5,931 crore and a stock price of ₹444, but don’t confuse the branded gloss for a debt-free catwalk model. In the last 3 months, the stock is down ~13.5%, and over 6 months it’s down ~20.8%, proving that even premium brands can trip on valuation expectations.

Latest Q3 FY26 numbers look sharp on the surface: Revenue ₹1,377 crore (+14.5% YoY), EBITDA ₹195 crore (+17.7% YoY), and PAT ₹36 crore. Margins are expanding, operating leverage is visible, and cash flows are behaving better than they did in earlier fashion disasters.

But then you peek at the wardrobe backstage: Debt ₹1,211 crore, ROE still negative, and Price-to-Book at ~6x. This isn’t a clean luxury play—it’s a stitched-together turnaround trying to look sexy again. Curious already? Good. Keep reading.


2. Introduction – From Brand Bazaar to Financial Diet

Once upon a time, Arvind Fashions tried to be everything to everyone—premium, mass, kids, beauty, innerwear, international glamour, mall traffic magnet, and occasionally a charity for loss-making brands. The result? Bloated costs, stressed balance sheets, and shareholders asking, “Bhai, paisa kahan gaya?”

Over the last few years, AFL has done what most Indian retailers struggle to do: kill their darlings. GAP? Gone. Sephora? Sold. Kids, Hanes, random private labels?

Sent to fashion heaven. What remains is a tighter brand portfolio, better working capital discipline, and management finally speaking the language of ROCE instead of runway shows.

Q3 FY26 tells us one thing clearly: the business model is no longer broken. Whether it becomes elegant is still an open question.


3. Business Model – WTF Do They Even Do?

AFL is not a fabric mill. It is not a discount retailer. It is not Zara. It is a brand licensing + retail execution machine.

The company operates licensed global brands like USPA, Tommy Hilfiger, Arrow, Calvin Klein, and its own Flying Machine, selling them via:

  • Exclusive Brand Outlets (EBOs)
  • Multi-Brand Outlets (MBOs)
  • Department stores
  • Online marketplaces & brand websites

Think of AFL as a brand landlord—it rents credibility from global labels and monetises Indian aspiration. Execution matters more than design here. One bad season and inventory turns into expensive cotton monuments.


4. Financials Overview –

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