Aditya Birla Fashion and Retail (ABFRL) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue grew 8% YoY, with EBITDA up 13% and margin expansion of 70 bps, despite mixed demand and festive timing shifts impacting some segments.

• Ethnic and luxury portfolios delivered strong double-digit growth, while value/mass segments were impacted by festive and EOSS timing.

• Digital-first and new businesses, including TMRW, posted over 20% growth, with TMRW sales up 29% YoY and losses peaking.

• Strategic investments in network expansion and premiumization are showing early positive results, especially in Pantaloons and ethnic segments.

• Board approved unaudited results for Q3 and 9M FY26, reflecting the demerger of MFL Business and pending amalgamations.

Financial highlights

• Q3 FY26 consolidated revenue: ₹2,374 crore (up 8% YoY); EBITDA: ₹370 crore (up 13% YoY); EBITDA margin: 15.6% (up 70 bps YoY).

• Q3 FY26 normalized loss: ₹115 crore; reported loss: ₹137-141 crore, including a one-time exceptional item related to Labour Code.

• 9M FY26 consolidated revenue: ₹6,187 crore (up 10% YoY); EBITDA: ₹655 crore (up 17% YoY); margin: 10.6%.

• Gross cash as of Dec 2025: ₹2,100 crore; consolidated net cash: ₹600 crore.

• Standalone Q3 FY26 revenue: ₹1,641.69 crore; net loss: ₹61.57 crore; consolidated net loss: ₹137.30 crore.

Outlook and guidance

• Pantaloons targets mid- to high-single-digit like-to-like growth and double-digit overall growth over the next two years.

• TCNS plans to add 50-60 stores next year, with breakeven expected in FY27; Tasva breakeven targeted for FY28.

• OWND! expects to open 40-50 stores in the coming year, with profitability not expected before FY29; TMRW breakeven projected for FY29.

• Focus remains on premiumization, network expansion, and leveraging digital and omni-channel growth levers.

• Management is monitoring Labour Code implementation and will update estimates as clarifications emerge.