Aditya Birla Fashion and Retail (ABFRL) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue grew 9% YoY to INR 1,831 crore, led by new businesses and strong ethnic segment performance, with margin resilience despite a cautious market.

• EBITDA increased 38% YoY, marking the fourth consecutive quarter of margin expansion.

• Ethnic and TMRW businesses delivered standout growth of 25% and 38% YoY, respectively.

• The company completed the merger, forming Aditya Birla Lifestyle Brands Limited, listed on June 23, 2025.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, were approved by the Board on August 13, 2025.

Financial highlights

• Consolidated revenue from operations was INR 1,831.46 crore, up from INR 1,674.22 crore YoY; standalone revenue was INR 1,392.85 crore.

• EBITDA rose 38% YoY to INR 169 crore, with margin improving by 200 bps to 9.3%.

• PAT remained negative at -INR 234 crore, slightly improved from -INR 238 crore YoY, impacted by higher depreciation.

• Pantaloons revenue was INR 1,094 crore; like-to-like growth normalized at 3% after adjusting for Eid shift.

• E-commerce sales (excluding TMRW) grew over 20% YoY.

Outlook and guidance

• Focus remains on scaling core brands, accelerating high-potential segments, and integrating recent business combinations.

• Ethnic business expected to sustain 20%+ growth, with portfolio-level post-index EBITDA margins north of 20% as TCNS and Tasva scale.

• Pantaloons to shift from network consolidation to net store additions, focusing on larger, modern stores.

• Continued emphasis on profitable growth, omni-channel expansion, and digital initiatives.

• TCNS and Style Up to expand store networks in the second half and next year as profitability improves.