Arvind Fashions Ltd. (ARVINDFASN) AI Stock Analysis

• Market Cap: ₹58.76B
• Dividend Yield: 0.31%
• Average Volume (3M): 10.85K
• Price to Earnings (P/E): 65.3
• Beta (1Y): 1.22
• Revenue Growth: 10.72%
• EPS Growth: -115.52%
• Country: IN
• Employees: 1,244
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 2.50
• Shares Outstanding: 133,630,190
• 10 Day Avg. Volume: 8,854
• 30 Day Avg. Volume: 10,853
• PEG Ratio: 1.06
• Price to Book (P/B): 5.59
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 12.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹660.00
• Price Target Upside: 30.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 15.83
• Revenue Forecast (FY): ₹52.53B

• Rating: 56 Neutral
• Price Target: ₹440.00 ▼(-13.33% Downside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Arvind Fashions Ltd. demonstrates strong operational efficiency and cash flow management, which are significant strengths. However, the stock faces challenges with profitability and valuation, as indicated by a negative P/E ratio and low dividend yield. The technical analysis suggests a bearish trend, further impacting the overall score.

Positive Factors

Strong cash generation

Consistent free cash flow growth and a favorable operating cash flow to net income ratio indicate the company can fund operations and reinvest without relying solely on external capital. Controlled capex alongside FCF expansion supports medium-term deleveraging and operational resilience.

Improving operating margins

Rising EBIT and EBITDA margins signal effective cost controls and scale benefits in core apparel operations. Sustained margin expansion improves cash conversion potential and provides a buffer for cyclical revenue fluctuations, supporting longer-term profitability recovery.

Multi-channel business model

A diversified revenue mix across owned stores, digital commerce and wholesale reduces dependence on any single channel. This structural flexibility lets management shift mix toward higher-margin or faster-turn channels, improving resilience to changing consumer behaviors over months to years.

Negative Factors

Negative net income / EPS decline

A reported net loss and steep EPS deterioration undermine retained earnings and limit internal funding for growth or deleveraging. Persistent losses can force reliance on external financing or asset actions, constraining strategic flexibility and increasing execution risk over the medium term.

Moderate but still elevated leverage

Relatively high leverage raises interest and refinancing sensitivity, reducing free cash available for reinvestment. If revenue or margins falter, fixed financial costs could magnify stress, limiting ability to fund store optimisation or brand investments over the next several quarters.

Large owned store footprint

Heavy reliance on owned physical stores creates fixed-cost operating leverage (leases, staffing). With profitability under pressure and a need to invest in digital, the store-first cost base may constrain margin recovery and require costly restructuring if demand mix shifts further to online channels.

Arvind Fashions Ltd. Business Overview & Revenue Model

Company Description

Arvind Fashions Limited engages in retailing readymade garment, cosmetics, and accessories in India. The company also offers beauty and footwear products. It provides a portfolio of owned and licensed brands, such as US Polo, Arrow, Flying Machine, Tommy Hilfiger, Calvin Klein, Unlimited, Sephora, and others. The company sells its menswear, womenswear, and kids wear products through retail and departmental stores, as well as online. It also operates UNLIMITED, the apparel value retails stores; and exports its products to Nepal, Sri Lanka, and the Middle East. The company was formerly known as Arvind J&M Limited. Arvind Fashions Limited was incorporated in 2016 and is based in Bengaluru, India.

How the Company Makes Money

Arvind Fashions Ltd. generates revenue primarily through the sale of its branded apparel and accessories. The company operates on a multi-channel retail model, encompassing exclusive brand outlets, multi-brand retail, and e-commerce platforms, which broadens its market reach. Key revenue streams include direct sales from its owned brands, franchise operations, and licensing agreements with international brands, allowing it to earn royalties. Additionally, strategic partnerships with other fashion and retail companies enhance its product offerings and distribution capabilities, contributing significantly to its overall earnings.

Arvind Fashions Ltd. Financial Statement Overview

Summary

Arvind Fashions Ltd. shows strong improvements in operational efficiency and cash flow management, despite challenges in profitability as evidenced by a negative net income in 2025. The balance sheet indicates moderate leverage with a need for further improvement to mitigate potential risks.

Income Statement

Arvind Fashions Ltd. shows an improving trajectory in revenue growth, with revenue increasing from 2024 to 2025. However, the company reported a negative net income in 2025, which impacts the net profit margin negatively. Despite this, the EBIT and EBITDA margins have improved significantly, indicating better operational efficiency.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, which has slightly improved over the years. Stockholders' equity has shown some growth, contributing to a better equity ratio. However, the overall leverage is still relatively high, posing a potential risk if revenue growth does not sustain.

Cash Flow

Arvind Fashions Ltd. has demonstrated strong cash flow management, with significant growth in free cash flow in recent years. The operating cash flow to net income ratio is favorable, indicating good cash generation relative to reported earnings. The company has also managed to keep capital expenditures in check, supporting free cash flow growth.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	47.72B	46.20B	42.52B	40.64B	30.52B	19.10B
Gross Profit	25.61B	24.70B	20.36B	18.17B	12.03B	7.09B
EBITDA	6.49B	6.02B	5.33B	4.88B	2.58B	643.20M
Net Income	-243.20M	-355.70M	806.40M	367.10M	-2.67B	-5.80B
Balance Sheet
Total Assets	0.00	38.09B	36.07B	36.72B	32.63B	37.01B
Cash, Cash Equivalents and Short-Term Investments	1.65B	1.52B	1.53B	1.79B	866.70M	80.10M
Total Debt	0.00	11.57B	11.48B	12.65B	11.03B	18.98B
Total Liabilities	-11.64B	26.45B	24.15B	25.80B	24.12B	31.10B
Stockholders Equity	11.64B	9.57B	10.03B	9.10B	7.50B	5.22B
Cash Flow
Free Cash Flow	0.00	4.34B	3.52B	2.54B	2.91B	-1.24B
Operating Cash Flow	0.00	5.30B	4.34B	3.17B	3.00B	-789.50M
Investing Cash Flow	0.00	-752.20M	318.70M	-284.90M	-85.10M	-395.00M
Financing Cash Flow	0.00	-4.56B	-4.91B	-1.98B	-2.09B	1.13B

Arvind Fashions Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 507.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ARVINDFASN, the sentiment is Negative. The current price of 507.7 is above the 20-day moving average (MA) of 467.62, above the 50-day MA of 475.30, and above the 200-day MA of 496.26, indicating a bearish trend. The MACD of -11.17 indicates Positive momentum. The RSI at 32.92 is Neutral, neither overbought nor oversold. The STOCH value of 18.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ARVINDFASN.

Arvind Fashions Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JAICORPLTD	70 Outperform	₹18.42B	33.05	―	4.22%	―	―
KKCL	66 Neutral	₹28.99B	22.08	―	0.41%	28.67%	-20.77%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ARVINDFASN	56 Neutral	₹58.76B	65.33	―	0.31%	10.72%	-115.52%
ABFRL	48 Neutral	₹80.21B	-15.34	―	―	-32.83%	31.19%
INDTERRAIN	48 Neutral	₹1.55B	17.32	―	―	-5.67%	71.26%