Aarnav Fashions Ltd (539562)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Aarnav Fashions' revenue was ₹86.5 Cr (-10.9% year on year, -34.8% on the previous quarter), and net profit ₹1.7 Cr (-11.1% year on year); the operating margin was 7.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹86.5 | -10.9% | -34.8% |
| Operating profit | ₹6.7 | -4.1% | -24.1% |
| Net profit | ₹1.7 | -11.1% | -48.0% |
| EPS (₹) | 0.40 | -11.1% | -47.4% |
| Operating margin | 7.7% | — | — |
📢 Recent Corporate Announcements
Aarnav Fashions Ltd's Board of Directors met on July 28, 2026, to approve the unaudited financial results for Q1 FY27. The meeting concluded within 50 minutes, confirming the adoption of the results and the statutory auditor's limited review report. While specific quarterly figures were not detailed in the cover letter, the company enters this period with a TTM revenue of ‡462 Cr and a TTM PAT of ‡9 Cr. Investors should monitor these results against the previous quarter's revenue of ‡132.7 Cr to gauge growth consistency.
- Board meeting held on July 28, 2026, to approve results for the quarter ended June 30, 2026
- Meeting commenced at 05:45 p.m. and concluded at 06:35 p.m.
- Company reported a TTM revenue of ‡462 Cr prior to this announcement
- Current market capitalization stands at ‡135 Cr with a P/E ratio of 14.4
- Promoter holding remains stable at 66.53% as per the latest available context
Aarnav Fashions Ltd has responded to a clarification request from the BSE and NSE regarding recent fluctuations in its share price. On July 21, 2026, the company stated that it has disclosed all material information and events to the exchanges as per SEBI Regulation 30. Management confirmed there is no pending or undisclosed information that could impact the stock price. The company maintains that the recent price movement is purely due to market conditions.
- Response issued on July 21, 2026, following a query from stock exchanges regarding price volatility.
- Company confirms 100% compliance with SEBI Regulation 30 for all material disclosures.
- Management attributes the price movement to market conditions rather than any internal corporate developments.
- The company has a market capitalization of Rs 132 Cr and TTM revenue of Rs 462 Cr.
- Promoter holding remains stable at 66.53% as of the March 2026 quarter.
Aarnav Fashions Ltd has scheduled a board meeting on July 28, 2026, to consider and approve the unaudited financial results for the quarter ended June 30, 2026. This is a routine regulatory filing as per SEBI (LODR) Regulations, 2015. The trading window for insiders has been closed since July 1, 2026, and will remain closed until 48 hours after the results are declared. Investors should look for the actual financial performance data on the meeting date.
- Board meeting scheduled for July 28, 2026, at the registered office.
- Agenda includes approval of unaudited financial results for the quarter ended June 30, 2026.
- Trading window for insiders closed from July 1, 2026, until 48 hours post-results.
- Results will be accompanied by a Limited Review Report from Statutory Auditors.
Financial Performance
Revenue Growth by Segment
Total revenue from operations grew 6.34% YoY to INR 379.08 Cr in FY25 from INR 356.49 Cr in FY24. The company operates in fabric processing (bleaching, dyeing, printing, finishing) and grey fabric trading, though specific % splits per segment are not disclosed.
Geographic Revenue Split
Not disclosed in available documents, though manufacturing is centralized in Ahmedabad, Gujarat, which serves as a major textile processing hub.
Profitability Margins
Net profit margin improved significantly from 1.58% in FY24 to 2.44% in FY25 (a 35.35% increase). Operating margins for the group improved to 8.0%+ in FY24-25 from 5.6% in FY23 due to efficiency-focused capex.
EBITDA Margin
EBDIT stood at INR 30.11 Cr in FY25, representing an EBITDA margin of approximately 7.94%, up 9.72% YoY from INR 27.44 Cr in FY24.
Capital Expenditure
The company undertook capex for power generation for captive use and replacement capex to improve operational efficiencies. While specific future INR Cr values are not detailed, annual term debt obligations are projected at INR 22-32 Cr over the medium term.
Credit Rating & Borrowing
Ratings reaffirmed at CRISIL BBB-/Stable (Long Term) and CRISIL A3 (Short Term) as of June 2025. Total bank loan facilities rated are INR 155.56 Cr.
Operational Drivers
Raw Materials
Grey fabric and Coal (used for power generation and processing). Coal price increases previously impacted margins by 1.8% in FY23.
Import Sources
Primarily sourced from Ahmedabad, Gujarat, and surrounding textile hubs to leverage proximity to raw material markets.
Capacity Expansion
Current capacity not specified in MT; however, the company recently completed capex for captive power generation to improve margin stability and efficiency.
Raw Material Costs
Not disclosed as a specific % of revenue, but the company noted that coal price volatility is a primary driver of margin fluctuations.
Manufacturing Efficiency
Efficiency improved through replacement capex and captive power, leading to a 29.98% increase in the interest coverage ratio to 3.06 in FY25.
Logistics & Distribution
Not disclosed as a specific % of revenue, but the Ahmedabad location provides a competitive advantage in logistics due to proximity to the textile hub.
Strategic Growth
Expected Growth Rate
6.34%
Growth Strategy
Growth is driven by the 2020 amalgamation with Gopi Synthetics and other group entities. Strategy focuses on improving margins through captive power generation, leveraging the promoters' 40+ years of experience, and maintaining a well-established distribution network in the Ahmedabad textile hub.
Products & Services
Processed fabrics including suiting, shirting, dress materials, and dupattas; trading of grey fabric; and job work services.
Brand Portfolio
Not disclosed; the company primarily operates in the B2B textile processing and trading segment.
Market Expansion
Focus on global shifts toward sustainable textiles and increasing demand for synthetic/blended fabrics to diversify from pure cotton reliance.
Market Share & Ranking
Not disclosed; the industry is characterized as highly unorganized with many small-capacity players.
Strategic Alliances
Amalgamated with Gopi Synthetics Ltd and other group companies effective October 1, 2020, to consolidate operations.
External Factors
Industry Trends
The industry is shifting toward Industry 4.0 (automation/digitization) and sustainable textiles. Indian players face a technology gap compared to global peers, impacting high-value market competitiveness.
Competitive Landscape
Intense competition from numerous unorganized players with small capacities and limited capital requirements.
Competitive Moat
Moat is based on the 'Advantageous Location' in Ahmedabad (logistics/labor benefits) and 'Promoter Experience' (40+ years). Sustainability is moderate due to low entry barriers in the unorganized textile sector.
Macro Economic Sensitivity
Highly sensitive to cotton price fluctuations and erratic monsoons which impact raw material availability and costs.
Consumer Behavior
Increasing global demand for synthetic and blended fabrics, requiring the company to adapt beyond its current heavy cotton reliance.
Geopolitical Risks
Preferential trade access for competitors like Bangladesh and Vietnam poses a risk to India's global market share in textiles.
Regulatory & Governance
Industry Regulations
Compliance with stricter global sustainability and labor norms is required to maintain export opportunities and avoid reputational damage.
Environmental Compliance
Not disclosed in absolute INR, but the company notes increasing global norms on sustainability and ESG disclosures as a challenge for smaller firms.
Taxation Policy Impact
Current tax provision for FY25 was INR 3.70 Cr on a PBT of INR 12.26 Cr, reflecting an effective tax rate of approximately 30.18%.
Risk Analysis
Key Uncertainties
Working capital intensity (GCA of 230 days) and potential for large debt-funded capex to weaken the financial risk profile.
Geographic Concentration Risk
High concentration of manufacturing assets in Ahmedabad, Gujarat.
Third Party Dependencies
Moderate dependency on coal suppliers for processing energy and grey fabric suppliers for trading operations.
Technology Obsolescence Risk
Risk of falling behind global peers who are rapidly adopting Industry 4.0 practices, automation, and advanced manufacturing.
Credit & Counterparty Risk
Receivables stood at 140 days in FY24 (expected to moderate to 120 days in FY25), indicating high counterparty credit risk and potential for stretched payment cycles.
