Aditya Birla Fashion and Retail (ABFRL) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue grew 7% year-over-year to INR 3,428 crore, with EBITDA up 15% to INR 406 crore and margin expansion to 11.8%.

• Profit after tax was a loss of INR 215 crore, impacted by continued investments in TMRW and ethnic businesses.

• Distribution network expanded to 4,190 brand stores and 417 Pantaloons stores, totaling 11.9 million sq. ft.

• Results reflect the impact of recent acquisitions and ongoing corporate restructuring, including the TCNS Clothing merger and planned demerger of Madura Fashion & Lifestyle.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board and reviewed by auditors with no material misstatements found.

Financial highlights

• Q1 FY25 consolidated revenue was INR 3,428 crore, up from INR 3,196 crore in Q1 FY24; standalone revenue was INR 2,985.99 crore.

• Consolidated EBITDA reached INR 406 crore (11.8% margin), up 15% YOY; net loss widened to INR 215 crore.

• Pantaloons segment revenue up 5% YOY to INR 1,101 crore, with EBITDA margin at 17.6%.

• Lifestyle Brands revenue at INR 1,482 crore, EBITDA margin up 50 bps to 18.8%.

• Ethnic and digital-first portfolios more than doubled revenue; established businesses saw margin expansion from gross margin improvement and cost control.

Outlook and guidance

• Anticipates improved demand in upcoming wedding and festive seasons, positioning for stronger market capture.

• H2 expected to show significant improvement, with Q2 seeing some uptick but most momentum shift in the second half.

• TCNS expected to turn profitable in H2 FY25; continued investment in Tasva and TMRW.

• Continued investments in digital-first brands and ethnic portfolio expected to drive future growth.

• Awaiting regulatory approvals for the demerger of Madura Fashion & Lifestyle and expects to give effect to the TCNS Clothing merger in the next quarter.