Motilal Oswal has issued a buy rating on Arvind Fashions with a target price of ₹680 in its research report dated August 19, 2026. According to the brokerage's analysis, the company demonstrated meaningful improvement in earnings quality during FY26, with revenue growing 14% to ₹52.7 billion and Pre-Ind AS EBITDA rising 23% to ₹4.5 billion.
The company's latest financial results show continued strong momentum, with consolidated net sales reaching ₹1,278.50 crore in June 2026, up 15.46% year-on-year. AFL Standalone also performed well with net sales of ₹135.81 crore, representing a 14.88% increase compared to the previous year. This recent performance reinforces the positive outlook from Motilal Oswal's earlier analysis.
The growth was primarily driven by the USPA brand, which achieved 20% revenue growth to ₹28.8 billion with net sales value crossing ₹25 billion. The PVH portfolio also contributed positively, growing 7% to ₹15.0 billion. As reported by Motilal Oswal, Arrow also demonstrated resilience with 7% growth despite ongoing reset operations.
The company's operating model is undergoing a strategic shift toward direct-to-consumer (D2C) channels and adjacent categories. According to the brokerage's report, D2C contributed 56% to revenue, up 300 basis points year-on-year, while adjacent categories reached 24% of sales, up 18% year-on-year. This strategic pivot represents a significant change in the company's distribution approach.
Recent trading data shows Arvind Fashions opening at ₹519.90 and reaching a high of ₹537.90 in today's session, with a low of ₹519.55. The stock's average traded price stands at ₹531.42, while technical indicators suggest an uptrend with the 50 DMA at ₹533.39 and 200 DMA at ₹406.54. The company's shareholding pattern shows promoters holding 38.09% as of August 2026, with Domestic Institutional Investors increasing their stake to 22.77%.
