Aditya Birla Fashion and Retail (ABFRL) Q2 26/27 earnings summary

Executive summary

• Q2 consolidated revenue was ₹2,030.03 crore, up 2% YoY; EBITDA fell 43% to ₹67 crore as shifted festive demand drove negative operating leverage.

• Q2 net loss after tax was ₹376.41 crore; H1 revenue was ₹4,055.59 crore and net loss after tax ₹625.14 crore.

• Management expects stronger H2 revenue, profitability and cash generation, supported by festive and wedding demand and working-capital release.

Financial highlights

• Q2 EBIT loss was ₹303 crore, PBT loss ₹454.49 crore and PAT loss ₹376.41 crore, versus year-earlier losses of ₹209 crore, ₹333 crore and ₹295.09 crore, respectively.

• H1 EBITDA was ₹233 crore, down 18%; EBIT loss was ₹486 crore and PBT loss ₹774.75 crore.

• Q2 total income was ₹2,090 crore versus ₹2,036 crore; total expenses rose to ₹2,538 crore from ₹2,362 crore.

• H1 net cash used in operating activities was ₹87.43 crore versus ₹100.74 crore used in the prior-year period.

Segment performance

• Pantaloons Q2 revenue was ₹1,139.95 crore, flat YoY; format LTL was -7%, while non-East markets delivered +2% LTL growth.

• Ethnic portfolio revenue was ₹517 crore, up 2%; excluding TCNS, it grew 12%. Q2 EBITDA loss was ₹17 crore.

• TMRW revenue grew 10% to ₹244 crore, or 19% including WROGN; EBITDA loss narrowed to ₹41 crore from ₹62 crore, with profitability improving YoY for a fourth consecutive quarter.

• Luxury revenue grew 11% in Q2 and 24% in H1; OWND! grew 58% YoY, while Jaypore reduced losses.

• H1 revenue grew 5% at Pantaloons to ₹2,344.34 crore, 3% in ethnic to ₹970 crore, 11% at TMRW to ₹464 crore and 20% in Others to ₹316 crore.