India’s apparel-retail landscape is shifting — and Arvind Fashions Limited (AFL) is demonstrating how to win in this environment. In the second quarter of FY26 (ended September 30, 2025), AFL posted consolidated revenues of ₹1,418 crore (~US $159.7 million), up 11.3 per cent year-on-year. scanx.trade+1

Strong top-line growth

The revenue growth was powered by two major levers:

• A strong direct channel performance, with like-to-like growth of ~8.3 per cent.

• A surge of over 50 per cent in the online B2C business, signalling that the digital pivot is paying off.
  These shifts show AFL’s ability to adapt to changing consumer behaviour and channel dynamics.

Margin improvement

Beyond growth, AFL improved its margin profile:

• Gross margin rose by about 210 basis points (bps) to 52.5 per cent.

• EBITDA grew 18.2 per cent to ₹200 crore (~US $22.5 million), and EBITDA margin moved to ~14.1 per cent.
  These gains were attributed to a richer channel mix (with more direct and online sales) and fewer discounting pressures.

Profit and H1 snapshot

• Profit after tax rose ~26.9 per cent to ~₹38 crore.

• For H1 FY26, revenues stood at ₹2,525 crore (~US $284.5 million), up ~13.3 per cent.

• EBITDA for H1 rose ~19.1 per cent, while profit before tax jumped ~40 per cent.
  This gives a picture of not just a one-quarter bump but a full-half momentum build-up.

Strategic levers & commentary

AFL’s leadership (MD & CEO Amisha Jain) pointed to several strategic priorities:

• Deepening direct-to-consumer connections.

• Accelerating retail expansion and premiumisation of the brand portfolio.

• Scaling adjacent categories (perhaps lifestyle, accessories) to widen their ecosystem.

• Momentum from GST reforms and improved consumer confidence are cited as tailwinds.

Why this matters for fashion retailers in India

The broader apparel market in India is undergoing some structural shifts:

• Consumers are increasingly shopping online — especially younger segments and urban centres.

• Direct channels (company-owned stores, exclusive brand outlets) allow for better margin control compared to traditional wholesale.

• Premiumisation (brands, higher price-points) is a way to offset pressure from discounting and volume decline in mass segments.
  AFL appears to be executing in all these areas, which positions them well for the next phase.

Risks & watch-points

• While growth is healthy, the profit before tax and net profit margins remain under pressure due to interest, depreciation and cost escalation (as noted by some analyses). Markets Mojo

• Execution of store expansion, omnichannel integration and brand refresh are capital-intensive and will require sustained discipline.

• Consumer spending in apparel remains sensitive to macro factors (inflation, input cost pressure, raw material volatility), which could affect discretionary spends.

Conclusion

In summary, Arvind Fashions’ Q2 FY26 results reflect a meaningful step forward: double-digit revenue growth, margin expansion and a strategic tilt toward higher‐margin channels such as online B2C and direct stores. By aligning with the evolving Indian fashion-retail landscape — where digital, brand strength and premiumisation matter — AFL is building momentum. That said, sustained success will depend on managing costs, executing brand initiatives and navigating consumer spending headwinds. For stakeholders — whether investors, industry watchers or brand partners — AFL’s performance provides a compelling case-study of how apparel players can adapt and grow in India today.