Arvind Fashions Ltd. (ARVINDFASN) AI Stock Analysis

Arvind Fashions Ltd.

(NSE:ARVINDFASN)

Select Model

Rating:54Neutral

Price Target:INR 357.00▲(2.09% Upside)

Action:reiterated

Date:08/09/26

The score is driven primarily by improving operating performance and strong, consistently positive free cash flow, but is held back by elevated leverage and thin/volatile net profitability. Technical indicators are mixed with negative MACD, and valuation is the largest drag due to a high P/E and low dividend yield.

Positive Factors

Revenue ExpansionSustained revenue expansion through 2026 indicates continued recovery and scale-up in the branded fashion business. Ongoing top-line growth can support better fixed-cost absorption, strengthen the portfolio’s market position, and provide a foundation for further operating improvement over the next several quarters.

Negative Factors

Elevated LeverageDebt-to-equity of roughly 1.4x leaves the company more dependent on borrowed capital while net profitability remains modest. This reduces financial flexibility, increases the importance of consistent cash generation, and leaves less room to absorb weaker discretionary demand or fund expansion during difficult periods.

Arvind Fashions Ltd. (ARVINDFASN) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 57.35B
Dividend Yield: 0.46%
Average Volume (3M): 16.29K
Price to Earnings (P/E): 39.0
Beta (1Y): 1.22
Revenue Growth: 13.94%
EPS Growth: ―
Country: India
Employees: 1,092
Sector: General
Sector Strength: 55
Industry: Apparel - Retail

Arvind Fashions Ltd. Business Overview & Revenue Model

Company Description

Arvind Fashions Limited engages in the wholesale and retail trading of garments and accessories in India and internationally. The company offers a portfolio of owned and licensed international brands, such as US Polo, Arrow, Tommy Hilfiger, Flying Ma...

How the Company Makes Money

Arvind Fashions makes money primarily by selling branded fashion products to consumers and, where applicable, through brand/distribution arrangements. Key revenue streams generally include: (1) Retail sales through company-operated physical stores (r...

Arvind Fashions Ltd. Financial Statement Overview

Summary

Improving fundamentals with material revenue expansion (2026 up ~7.1% YoY), better operating profitability (EBIT margin ~7.9%, EBITDA margin ~13.4%), and consistently positive free cash flow since 2022 (large jump in 2026). Offsetting this, net profitability is thin (~2.3% net margin) and volatile (net loss in 2025), while leverage remains elevated (debt-to-equity ~1.4x), limiting financial flexibility.

Income Statement

63Positive

Balance Sheet

52Neutral

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	54.37B	52.66B	46.20B	42.52B	40.64B	30.52B
Gross Profit	26.57B	22.52B	24.70B	20.36B	18.17B	12.03B
EBITDA	7.33B	7.05B	6.02B	5.33B	4.88B	2.58B
Net Income	1.20B	1.23B	-355.70M	806.40M	367.10M	-2.67B
Balance Sheet
Total Assets	0	42.16B	38.09B	36.07B	36.72B	32.63B
Cash, Cash Equivalents and Short-Term Investments	639.10M	639.10M	1.52B	1.53B	1.79B	866.70M
Total Debt	0	13.36B	11.57B	11.48B	12.65B	11.03B
Total Liabilities	-11.61B	30.55B	26.45B	24.15B	25.80B	24.12B
Stockholders Equity	11.61B	9.44B	9.57B	10.03B	9.10B	7.50B
Cash Flow
Free Cash Flow	647.30M	2.18B	4.34B	3.52B	2.54B	2.91B
Operating Cash Flow	1.19B	3.27B	5.30B	4.34B	3.17B	3.00B
Investing Cash Flow	-518.40M	-2.41B	-752.20M	318.70M	-284.90M	-85.10M
Financing Cash Flow	-1.87B	-1.86B	-4.56B	-4.91B	-1.98B	-2.09B

Arvind Fashions Ltd. Technical Analysis

Technical Analysis SentimentNegative

Last Price349.70

Price Trends

50DMA414.23Negative

100DMA437.79Negative

200DMA442.56Negative

Market Momentum

MACD-16.44Positive

RSI29.19Positive

STOCH14.05Positive

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 349.70 is below the 20-day moving average (MA) of 383.65, below the 50-day MA of 414.23, and below the 200-day MA of 442.56, indicating a bearish trend. The MACD of -16.44 indicates Positive momentum. The RSI at 29.19 is Positive, neither overbought nor oversold. The STOCH value of 14.05 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:ARVINDFASN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:REDTAPE	69Neutral	INR 57.22B	23.27	―	1.93%	18.82%	38.28%
IN:METROBRAND	66Neutral	INR 223.76B	54.13	―	0.73%	15.60%	16.47%
IN:BATAINDIA	60Neutral	INR 80.79B	55.26	―	5.41%	1.91%	-29.92%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ARVINDFASN	54Neutral	INR 46.76B	39.03	―	0.46%	13.94%	―
IN:CAMPUS	51Neutral	INR 58.32B	37.92	―	0.79%	13.71%	30.46%
IN:RELAXO	45Neutral	INR 67.91B	36.53	―	1.29%	2.11%	5.98%

* General Sector Average

Performance Comparison

IN:ARVINDFASN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:ARVINDFASN	Arvind Fashions Ltd.	349.70	-206.31	-37.10%
IN:BATAINDIA	Bata India Ltd	628.55	-393.95	-38.53%
IN:CAMPUS	Campus Activewear Ltd.	190.80	-87.49	-31.44%
IN:METROBRAND	Metro Brands Ltd.	820.80	-325.69	-28.41%
IN:REDTAPE	Redtape Limited	103.50	-35.49	-25.53%
IN:RELAXO	Relaxo Footwears Limited	272.80	-156.91	-36.51%

Arvind Fashions Ltd. Corporate Events

Arvind Fashions Discloses AGM E-Voting Results and Scrutinizer Report

Aug 20, 2026

Arvind Fashions Limited has reported that its 11th Annual General Meeting was held on August 19, 2026 via video conferencing and other audio-visual means in line with regulatory provisions. The company submitted to the stock exchanges the formal voti...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Aug 09, 2026

Arvind Fashions Ltd. AI Stock Analysis