Mumbai–Arvind Fashions reported a 23.8% decline in consolidated net profit for the first quarter of fiscal 2027 as higher expenses and raw material costs offset double-digit revenue growth.
The retailer, which operates brands including Arrow, Calvin Klein and Tommy Hilfiger in India, posted net profit of Rs 9.6 crore for the quarter ended June 30, down from Rs 12.6 crore a year earlier, according to a stock exchange filing.
Revenue from operations increased 15.5% to Rs 1,279 crore from Rs 1,107 crore, supported by healthy demand and increased marketing investments across the company’s brand portfolio.
Amisha Jain, Managing Director and CEO, said Arvind Fashions began the fiscal year with strong operating performance, including 15.5% revenue growth and 19.6% EBITDA growth.
“This performance is particularly noteworthy given the inflationary environment shaped by the West Asia conflict, higher petroleum prices, elevated forex rates and minimum wage increases across several states, and reflects the resilience of our brand portfolio and the discipline of our operating model,” Jain said.
“Looking ahead, our focus remains on accelerating growth across retail and B2C channels while keeping an eye on the impact of war,” she added.
The company’s EBITDA margin improved to 12.5% from 12% in the same quarter last year. Total expenses, however, rose 15% to Rs 1,245 crore, weighing on net profit.
Arvind Fashions said rising raw material costs, partly linked to the conflict involving Iran, placed additional pressure on input prices during the quarter.
The company also identified continuing geopolitical tensions in West Asia and the effect of El Niño on the monsoon as potential sources of inflation in the coming months. It warned that higher raw material costs and a weaker rupee could affect future capital spending plans.
Shares of Arvind Fashions fell about 3.4% following the earnings announcement. (Source: IANS)
