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Q2 FY27 RESULTS Q2 FY27 RESULTS PRESENTATION Nov | 2026
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Q2 FY27 RESULTS DISCLAIMER 2 This document by Arvind Fashions Limited (‘the Company’) contains forward-looking statements that represent our beliefs, projections and predictions about future events or our future performance. These forward-looking statements are necessarily subjective and involve known and unknown risks, uncertainties and other important factors that could cause our actual results performance to differ materially from any future results or performance described in or implied by such statements. The forward-looking statements contained herein include statements about the Company’s business prospects, its ability to attract customers, its expectation for revenue generation and its outlook. These statements are subject to the general risks inherent in the Company’s business. These expectations may or may not be realized. Some of these expectations may be based upon assumptions or judgments that prove to be incorrect. In addition, the Company’s business and operations involve numerous risks and uncertainties, many of which are beyond the control of the Company, which could result in the Company’s expectations not being realized or otherwise materially affect the financial condition, results of operations and cash flows of the Company. The forward-looking statements are made only as of the date hereof, and the Company does not undertake any obligation to (and expressly disclaims any obligation to) update any forward-looking statements to reflect events or circumstances after the date such statements were made, or to reflect the occurrence of unanticipated events.
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Q2 FY27 RESULTS Q2 FY27 PERFORMANCE HIGHLIGHTS 3
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Q2 FY27 RESULTS MARKET & ECONOMY UPDATE 4 Strong brands with direct-to-consumer focus continue to drive higher market share External macro economic factors like ongoing West Asia conflict, El Nino impact on weather & repo rate changes to have inflationary pressures which we will mitigate by smart pricing and cost measures Overall demand remains steady despite shifting festival & online tower events
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Q2 FY27 RESULTS FY27 OBJECTIVES – WHAT WE HAVE SET FOR OURSELVES 5 Objectives Sales & Profitability • Aspiration to grow revenues at 12-15% with acceleration in adjacent categories growth • Operating leverage to aid EBITDA & PATmargins expansion Improve brand salience • Continued investments in advertisement to drive market share gains Grow via direct channels • Focus on driving the business through direct channels • Share of direct channels (retail + online B2C) to grow by 100-200 bps Accelerate store expansion Working capital & return ratios • Higher free cash flow generation through continued net working capital efficiency and asset-light approach • Further improvement in ROCE • Gross opening of ~150 stores, largely through FOFO route • Higher net sq. ft. addition compared to FY26 Transforming with data, analytics and AI • Leveraging AI to drive cost efficiencies across functions • Leverage analytics and AI to drive front-end effectiveness - Retail excellence, pricing, assortment, marketing effectiveness
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Q2 FY27 RESULTS 6 SALES Strong revenue growth at 10.0% Y-o-Y , driven by direct channel performance Retail LTL growth of 7.3%; aided by superior execution; adjusted for festive shift retail LTL is 10% PROFITABILITY Gross margins higher by 136 bps in Q2 led by strong LTL, lower retail discounting & better channel mix GROWTH DRIVERS Gross addition of 24 EBOs; net sq. ft. at ~26K Adjacent categories growth of 13% WORKING CAPITAL NWC days at 65 & inventory turns at healthy ~3.4x CHANNEL-WISE PERFORMANCE 15.4% growth in retail channel with strong LTL & store expansion Online direct-to- consumer business grew 28% Y-o-Y Mid-single digit growth in consumer sales in wholesale channels due to festive shift Q2 FY27 BUSINESS HIGHLIGHTS EBITDA growth of 15.5% Y-o-Y to ₹ 216 crores; 67 bps higher margin
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Q2 FY27 RESULTS Sales 1418 1559 Q2 FY26 Q2 FY27 STRONG SALES GROWTH LED BY DIRECT CHANNELS 7 • Delivered strong revenue growth of 10%, aided by growth across direct channels • Direct channels continued their outperformance o Sharp execution in retail drove strong LTL of 7.3% resulting in ~15% growth along with lower discounting o Adjusted for festive shift, retail LTL is 10% o ~28% growth in online B2C channel (45% growth adjusted for festive shift) • EBO count stood at 1044 as of Sep’26, net sq. ft. addition of ~26k ( ₹ in crores) +10.0%
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Q2 FY27 RESULTS LEADING TO CONTINUED MARGIN EXPANSION 8 EBITDA • Improvement in EBITDA margins by 67 bps Y-o-Y aided by gross margin expansion & better channel mix • PAT (from continuing operations) grew by 29.6% ( ₹ in crores) PBT # and PAT # 87 91 38 49 Q2 FY26 Q2 FY27 PBT PAT ( ₹ in crores) # from continuing operations 187 216 Q2 FY26 Q2 FY27 +15.5%
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Q2 FY27 RESULTS CHANNEL MIX 9 38% 12% 31% 20% Q2 FY26 Q2 FY27 Wholesale (MBO + Dept. Stores)Retail Online B2C Online B2B and others 40% 13% 33% 14%
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Q2 FY27 RESULTS CONTINUE TO OPEN MARQUEE EBOs 10 Arrow - Jayanagar, Bengaluru
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Q2 FY27 RESULTS CONTINUE TO OPEN MARQUEE EBOs 11 JM Road, Pune
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Q2 FY27 RESULTS 12 Muthialpet, Puducherry Horizon Tower, Jaipur CONTINUE TO OPEN MARQUEE EBOs
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Q2 FY27 RESULTS 13 CONTINUE TO OPEN MARQUEE EBOs Bailey Square, Patna
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Q2 FY27 RESULTS 14 Q2 FY27 PERFORMANCE HIGHLIGHTS BRAND HIGHLIGHTS
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Q2 FY27 RESULTS 15 Brand Highlights • Strong growth momentum continues o With new retail identity & sharp retail execution- continued retail expansion with marquee & large sq. ft. stores opening to further deepen retail presence o Delivered strong double digit LTL growth with lower retail discounting o Strong growth across all channels o Continued marketing investments • Share of revenue increasing for direct channels; growth of 25%+
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Q2 FY27 RESULTS 16 Brand Highlights • Product innovation continues to be at the core of brand journey, e.g., launched industry first super white range of shirts • Strong direct channel performance with 35%+ growth in online B2C • Continued retail expansion with marquee stores launch • Continued investments in marketing
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Q2 FY27 RESULTS 17 Brand Highlights • Sharp positioning of Flying Machine as unisex, denim anchored, on-trend youth brand • Online B2C expanded to other online channels leading to growth in online B2C channel. Direct channel contribution improved by 3%+ • Direct channel well-positioned to grow & scale faster • Continued marketing investments • Well-positioned to improve financial performance backed by growth & operating leverage
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Q2 FY27 RESULTS 20 Brand Highlights • Launch of TH.com to expand direct channel mix • Strong brand pull continues for this market leader • Strong LTL growth led by premiumization • Continued EBO expansion & focus on expanding retail & online presence • Continue to deliver strong financial performance
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Q2 FY27 RESULTS 21 Brand Highlights • Strong LTL growth with lower retail discounting & continued store expansion o Mid double-digit LTL adjusted for festive shift o Strong LTL growth led by premiumization • Premiumization trend helping brand deliver industry leading sell-thru’s • 20%+ growth in premium CKU innerwear leading to higher share • Continue to deliver strong financial performance
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Q2 FY27 RESULTS Pre IND-AS P&L 22
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Q2 FY27 RESULTS Q2 FY27 - PERFORMANCE SNAPSHOT - Pre IND-AS 23 ( ₹ in crores) Q2 FY27 Q2 FY26 Q2 FY25 Revenue from Operations 1559 1418 1273 EBITDA (excl. other income) 144 122 102 EBITDA % (excl. other income) 9.2% 8.6% 8.0% Other Income 3 7 5 PBT 98 90 73 Taxes 24 31 21 Non-Controlling Interest 19 19 15 PAT from continuing operations 56 41 36 Profit/(loss) from discontinued operations 0 0 0 Reported PAT 55 40 36
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Q2 FY27 RESULTS 1273 1418 1559 Q2’25 Q2’26 Q2’27 +10.0% Revenue PAT Fig in INR Crs 36 40 55 Q2’25 Q2’26 Q2’27 +37.5% Q2 FY27 - PERFORMANCE SNAPSHOT - Pre IND-AS EBIDTA EBIDTA excl. other income 102 122 144 Q2’25 Q2’26 Q2’27 +18.0% 24 3.6% 2.8% 2.8% 9.2% 8.6% 8.0%
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Q2 FY27 RESULTS Q2 FY27 RESULTS 25
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Q2 FY27 RESULTS Q2 FY27 - PERFORMANCE SNAPSHOT - Post IND-AS 26 ( ₹ in crores) Q2 FY27 Q2 FY26 H1 FY27 H1 FY26 Revenue from Operations 1559 1418 2837 2525 EBITDA (excl. other income) 216 187 376 321 EBITDA % (excl. other income) 13.9% 13.2% 13.2% 12.7% Other Income 7 13 14 28 PBT 91 87 131 126 Taxes 24 31 36 45 Non-Controlling Interest 19 19 37 31 PAT from continuing operations 49 38 59 51 Profit/(loss) from discontinued operations 0 0 -1 -1 Reported PAT 48 37 58 50
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Q2 FY27 RESULTS EFFICIENT WORKING CAPITAL MANAGEMENT 27 NWC days at healthy 65 days same as previous quarter closing. Higher share of direct channel led to higher inventory days. ( ₹ in crores) Sep'26 Jun'26 Mar'26 Sep'25 Inventory 1828 1644 1605 1492 Inventory days 108 105 102 96 Receivables 844 684 752 936 Receivable days 49 52 54 56 GWC 2672 2328 2356 2428 GWC days 157 157 156 152 Payables 1584 1312 1387 1467 Payable days 92 93 93 91 NWC 1088 1016 969 961 NWC days 65 65 64 60 Note for days calculation, for example: Inventory days = Average TTM Inventory / TTM Revenues * 365
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Q2 FY27 RESULTS BALANCE SHEET AS ON 30-SEP-2026 28 ( ₹ in crores) Particulars 30-Sep-2026 31-Mar-2026 Net Worth 1231 1161 Borrowings 690 531 Capital Employed 1921 1692 Inventory 1828 1605 Receivables 844 752 Creditors 1584 1387 Net Working Capital 1088 969 Net Fixed Asset 411 361 Discontinued Operations (12) (12) Other Assets 435 373 Capital Employed 1921 1692
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Q2 FY27 RESULTS WAY FORWARD 29
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Q2 FY27 RESULTS WAY FORWARD 30 AFL Stable demand environment to deliver consistent double digit revenue growth Continue to expand direct channel share thru retail & online B2C expansion Deepen our leadership in 5 largest apparel categories e.g., shirts, polos, denim, t-shirts & blazer, continue focus on scaling adjacent categories Continue to expand ROCE led by margin expansion and FCF generation Continue to expand margin led by higher direct channel share & operating leverage Build brands of scale & desire - continue higher marketing investments for consumer connect
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THANK YOU