Aditya Birla Fashion and Retail (ABFRL) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw consolidated revenue grow 3% YoY to ₹4,305 crore, with EBITDA up 13% and margin expanding to 15.9%, driven by operational efficiency and strategic initiatives.

• Profit after tax improved to a loss of ₹42 crore from a loss of ₹108 crore YoY, reflecting operational improvements.

• Demerger of the western wear business into Aditya Birla Lifestyle Brands Limited is progressing, with completion expected in 2-3 months and all necessary approvals underway.

• $490 million equity capital was raised via QIP and preferential issue, making the demerged entity debt-free and well-funded for growth.

• Financials reflect the impact of the amalgamation of TCNS Clothing Co. Ltd. and acquisition of Goodview Fashion Private Limited.

Financial highlights

• Consolidated Q3 revenue: ₹4,305 crore, up 3% YoY; EBITDA: ₹683 crore, up 13% YoY; margin at 15.9% vs 14.5% last year.

• Consolidated PAT: loss of ₹42 crore, improved from ₹108 crore loss YoY; EBIT increased 31% YoY to ₹211 crore.

• Standalone Q3 revenue: ₹3,740.34 crore; standalone net profit: ₹28.12 crore.

• TMRW segment achieved 26% YoY revenue growth and ~₹1,000 crore annual run-rate.

• Store network: 4,492 stores, 11.9 million sq ft retail area as of Dec 31, 2024.

Outlook and guidance

• Aggressive expansion planned, targeting 300+ new stores in the next 12 months, with focus on value fashion, premiumization, and ethnic/designer brands.

• Wholesale and e-commerce channels expected to augment growth momentum.

• TMRW expected to maintain 25-30% organic growth, with future capital raise planned.