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/wedding shopping concentrated in earlier quarters, impacting mass and premium segments.

• Ethnic and luxury portfolios delivered strong double-digit growth, while digital-first and new businesses, including TMRW, continued rapid growth with TMRW sales up 29% YoY.

• Board approved unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025, reflecting the demerger of Madura Fashion & Lifestyle (MFL) Business.

• Strategic focus remains on premiumization, network expansion, and profitability improvement across segments, with continued investment in new launches and alternate distribution channels.

• Financials reflect the amalgamation of Jaypore E-Commerce and TG Apparel & Decor, pending regulatory clearance.

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 crore, impacted by exceptional Labour Code costs.

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

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

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

Outlook and guidance

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

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

• TCNS plans to add 50-60 stores next year; OWND! expects to open 40-50 stores, with profitability not expected before FY29.

• TMRW expected to breakeven by FY29; ex-TMRW business already breakeven on pre-Ind AS basis.

• Management continues to monitor Labour Code implementation and will update estimates as clarifications emerge.