Aditya Birla Fashion and Retail (ABFRL) Q2 24/25 earnings summary

Executive summary

• Q2FY25 consolidated revenue reached ₹3,644 crore, up 13% YoY, with EBITDA at ₹410 crore (+11% YoY, 11.2% margin), but PAT loss widened to ₹215 crore due to higher depreciation and interest costs.

• H1FY25 revenue grew 10% YoY to ₹7,072 crore, with EBITDA up 13% and margin at 11.5%.

• The period included the completion and consolidation of the TCNS acquisition and the acquisition of Goodview Fashion Private Limited.

• All brands reported positive like-to-like growth, with improved working capital efficiency and strategic expansion in emerging and digital-first brands.

• The Board approved unaudited results for the quarter and six months ended September 30, 2024.

Financial highlights

• Q2FY25 consolidated revenue: ₹3,644 crore (+13% YoY); EBITDA: ₹410 crore (+11% YoY, 11.2% margin); PAT loss: ₹215 crore, impacted by higher depreciation/amortization and interest costs.

• H1FY25 consolidated revenue: ₹7,072 crore (+10% YoY); EBITDA: ₹816 crore (+13% YoY, 11.5% margin); PAT loss: ₹430 crore.

• Net debt as of September 30, 2024: ₹3,759 crore; store network: 4,538 stores, 12 million sq ft retail area.

• Exceptional items: ₹98 crore impairment for Forever 21 restructuring, ₹121 crore gain from Tarun Tahiliani or GFPL stake increase; net gain ₹23 crore.

• Earnings per share for Q2FY25 were negative at (₹1.81) consolidated.

Outlook and guidance

• Management expects improved demand in H2, driven by festive and wedding seasons, and plans to accelerate store openings, especially for successful formats.

• Focus remains on operational efficiency, product innovation, and customer experience to sustain growth.

• Demerger of Madura Fashion & Lifestyle Business is underway, pending further approvals.

• Double-digit revenue CAGR targeted for lifestyle brands over the long term.