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

Executive summary

• Q2 FY26 saw 13% year-over-year revenue growth, driven by early festive demand, e-commerce momentum, and new brand launches, despite localized disruptions and the impact of the MFL demerger.

• All major segments, including Pantaloons, Ethnic, Luxury, and TMRW, posted double-digit revenue growth, with Pantaloons and Ethnic as key contributors.

• EBITDA increased 7% YoY, but margins declined to 5.9% due to higher marketing spends and new store launches.

• Net loss widened to ₹295 crore in Q2 FY26, impacted by exceptional items and increased expenses.

• Strategic investments in brand building, marketing, and digital ventures are driving sustainable growth.

Financial highlights

• Consolidated revenue for Q2 FY26 reached ₹2,036.20 crore, up 13% YoY; H1 FY26 revenue was ₹3,813 crore.

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

• Q2 PAT loss was ₹295 crore, compared to a normalized loss of ₹277 crore last year; H1 PAT loss was ₹529 crore.

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

• Discontinued operations (MFL) contributed ₹1,883.35 crore in revenue for Q2 FY26.

Outlook and guidance

• Expectation of higher cash generation and profitability in H2, especially in Ethnic and wedding-related segments.

• Marketing investments to remain elevated to support new brand positioning and festive campaigns.

• 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.