Arvind Fashions Limited (ARVINDFASN)
Micro CapConsumer stocks · Micro cap · NSE
Arvind Fashions Limited is an Indian apparel and fashion retailer managing a portfolio of strong brands. The company focuses on direct-to-consumer channels, retail expansion, and leveraging data/AI for efficiency and effectiveness across its operations.
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.
Weak fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.
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 30 Jun 2026
Average · 42/100margin compression · Rev +15% YoY · PAT +12% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,278 Cr | +15.4% | -6.4% |
| EBITDA | ₹160 Cr | +20.3% | -15.3% |
| Operating margin | 12.0% | +0 bps | -200 bps |
| PAT | ₹28 Cr | +12.0% | -57.6% |
| PAT margin | 2.2% | -7 bps | -265 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1 FY27 sees strong 15.5% revenue growth driven by direct channels and 11.6% retail LTL, leading to 19.6% EBITDA growth. However, PAT declined 22.2% due to lower other income.
The company delivered robust top-line growth and improved operating margins, largely driven by direct channels and strong retail execution. While PAT declined due to lower other income, core operational performance appears healthy. Management's focus on direct channels, store expansion, and cost control is evident.
Revenue by Channel (Q1 FY27)
Latest issuer-disclosed distribution across 4 reported categories.
Direct Channel Performance
Strong revenue growth driven by direct channel performance; ~18% growth in retail, 23% in online B2C.
Retail LTL Growth
Retail LTL of 11.6% aided by superior execution.
Adjacent Categories
Adjacent categories witnessed 25%+ growth and are significant growth drivers.
Premiumization Trend
Premiumization trend helping brands deliver industry leading sell-thru’s and aid brand performance.
EBO Additions
Gross addition of 23 EBOs; net sq. ft. at ~20K in Q1 FY27. EBO count stood at 1030 as of Jun’26.
Store Expansion Target
Aspiration for gross opening of ~150 stores, largely through FOFO route, with higher net sq. ft. addition compared to FY26.
Strong Brands & D2C Focus
Strong brands with direct-to-consumer focus continue to drive higher market share.
Premiumization
Favorable tailwinds around premiumization continue to aid brand performance.
Stable Demand Environment
Stable demand environment to deliver consistent double digit revenue growth.
Early EOSS & Higher Discounting
Early onset of EOSS and higher discounting across the industry.
Inflationary Pressure
Continuing West Asia conflict & impact of El Nino on Monsoon likely to have inflationary pressure.
Cost Pressures
Cost pressures due to increased minimum wages & rising fuel costs.
Rupee Depreciation
Rupee after slight appreciation has recently touched all time high which will impact raw materials, shipping & capex.
Consumption Slowdown
Potential risk of consumption slowdown due to supply-led inflationary pressure.
Raw Material & Fuel Costs
Soaring fuel & raw material costs are potential risks.
Capex & Raw Material Shortages
Shortages in capex & raw materials for production are potential risks.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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.
Q1 results are typically seasonal for consumer fashion businesses, making year-over-year comparisons more relevant to assess underlying performance trends and growth.
Revenue Growth
Strong revenue growth at 15.5% Y-o-Y to 1,279 crores.
Retail LTL Growth
Retail LTL of 11.6% aided by superior execution.
Gross Margins
Gross margins higher by 90 bps in Q1 led by strong LTL & sourcing gains.
EBITDA Growth
EBITDA growth of 19.6% Y-o-Y to 160 crores; 44 bps higher margin.
Revenue Growth Aspiration
Aspiration to grow revenues at 12-15% with acceleration in adjacent categories growth.
Direct Channel Share Growth
Share of direct channels (retail + online B2C) to grow by 100-200 bps.
Margin Expansion
Operating leverage to aid EBITDA & PAT margins expansion; continue to expand margin led by operating leverage and higher direct channel share.
Leveraging AI & Analytics
Leveraging AI to drive cost efficiencies across functions and front-end effectiveness.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth | 15.5% Y-o-Y | Consistency in 12-15% revenue growth aspiration, especially from direct channels. |
| EBITDA Margin Expansion | 44 bps Y-o-Y improvement | Continued operating leverage and higher direct channel share aiding margin expansion. |
| Direct Channel Share | 41% (Retail 23% + Online B2C 18%) | Growth of 100-200 bps in direct channel share. |
| Store Expansion | 23 EBOs added, ~20K net sq. ft. in Q1 | Progress towards gross opening of ~150 stores and higher net sq. ft. addition. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
34Bearishfull bear SMA stack · SMA20 -3.5% / mo · MACD +
Technical chart
ARVINDFASNdaily · 1Y · AUTO+4.5%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 47.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~3.6% over last month) — short-term momentum negative.
- RSI(14) at 47 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 23% off 52W high · 22% 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
U-Score 44 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 44 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 5.1%.
- Piotroski is strong at 7/9.
- Cash flow contributes 7/10 to the score.
Main drags
- Fair-value margin of safety is negative at -42.8%.
- Valuation is weaker at 1/30; verify the latest quarterly trend.
- Balance sheet is weaker at 5/15; 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
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 81st percentile of the scored universe and 83rd percentile within Consumer. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero. Key concern: Debt/equity is 1.42.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Consumer: 83rd pctile, median 66 · Micro: 66th pctile, median 73
106 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy 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.
- ▸FCF yield is 5.1%.
- ▸7 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Debt/equity is 1.42.
- ▸2 older quarters in the 8-quarter window had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 45.50
- P/B
- 6.32
- EV/EBITDA
- 7.08
- Market Cap
- 5968.00Cr
Profitability
- ROE
- 14.10%
- ROCE
- 19.60%
- ROA
- 4.41%
- Dividend Y
- 0.36%
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
- 4.11×
- Altman Z
- 3.33
- Book Value
- 70.60
Cash Flow
- FCF Yield
- 5.13%
- FCF Positive Y
- 7/5
- OCF
- 404.00 Cr
- EPS TTM
- 8.95
Shareholding
- Promoter Hold
- 35.10%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 38%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable names in Consumer, ranked by similarity
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.