Aditya Birla Fashion and Retail (ABFRL) Q2 25/26 earnings summary

Executive summary

• Revenue grew 13% YoY in Q2 FY26 to INR 1,900.82 crore, driven by a strong festive season start, robust e-commerce, and all key segments posting double-digit growth, despite cautious consumer sentiment and localized disruptions.

• EBITDA increased 7% YoY to INR 116 crore, with margin at 5.9% due to higher marketing spends; net loss widened to INR 295 crore, impacted by exceptional items and increased expenses.

• Unaudited standalone and consolidated results for Q2 FY26 were released post board review, reflecting the impact of the Madura Fashion & Lifestyle (MFL) demerger effective May 1, 2025.

• Strategic initiatives, including new brand launches, luxury partnerships, and digital expansion, are driving sustainable, profitable growth.

Financial highlights

• Q2 FY26 consolidated revenue was INR 1,982 crore (up 13% YoY); H1 FY26 revenue reached INR 3,813 crore (up 11% YoY).

• Q2 EBITDA was INR 116 crore (up 7% YoY), margin at 5.9%; H1 EBITDA INR 286 crore, margin 7.5%.

• Q2 PAT loss was INR 295 crore, compared to INR 116 crore loss YoY; H1 PAT loss INR 529 crore.

• Gross cash at consolidated level stood at INR 2,150 crore as of September 25.

• Discontinued operations (MFL) contributed INR 1,883.35 crore in Q2 FY26.

Outlook and guidance

• Expect significant improvement in cash collection and profitability in H2, especially in Ethnic and wedding-related segments.

• Pantaloons segment margin guidance remains at 15-17%, with higher marketing investments expected.

• Targeting 40-50 new store additions in FY26 and plan to exit with ~95 OWND stores.

• Galeries Lafayette to open India's first luxury department store in Nov 2025.

• Focus on operational efficiency and integration post-demerger, with ongoing investments in subsidiaries and digital ventures.