Arvind Fashions Faces Profit Decline Amid Labour Code Costs

Arvind Fashions Ltd, a significant player in the casual and denim market, has reported a 22.4% decline in consolidated net profit for Q3 FY26. This downturn is attributed to exceptional costs related to the implementation of the new labour code, according to the company's latest earnings report.

The company recognized a one-time provision for gratuity and compensation absences, totaling Rs 29.01 crore. Despite this, AFL's profit before such exceptional items saw a 20.37% upturn, and revenue from operations increased by 14.45%, totaling Rs 1,376.58 crore for the period.

CEO Amisha Jain highlighted the consistent execution across direct-to-consumer channels, noting a strong 14.5% revenue growth. AFL focuses on expanding its brand presence and retail footprint to sustain this upward trajectory, even as shares rose 4.11% to Rs 446 on the BSE.