Aditya Birla Fashion and Retail (ABFRL) Q4 24/25 earnings summary

Executive summary

• Completed demerger, creating two independent entities: ABFRL and ABLBL, each with focused growth strategies and strong balance sheets.

• Both entities reported profitable growth in FY25 despite subdued consumer demand and low footfalls, with value and non-apparel segments outperforming.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2025, were approved, with the auditor issuing an unmodified opinion.

• ABLBL maintained strong profitability and aims to double in scale, while demerged ABFRL targets tripling sales and doubling EBITDA margins over five years.

• The year saw significant corporate actions, including the amalgamation of TCNS Clothing Co. Ltd. and the demerger of the Madura Fashion & Lifestyle (MFL) business.

Financial highlights

• ABLBL FY25 revenue grew 1% YoY to Rs. 7,830 Cr; EBITDA up 7% YoY with margin expansion to 16.7%.

• Demerged ABFRL FY25 revenue up 14% YoY to Rs. 7,355 Cr; comparable EBITDA up 46% YoY, margin at 11.6%.

• Standalone revenue from continuing operations for FY25 was ₹5,608.90 crore, with a net loss after tax of ₹486.69 crore from continuing operations.

• Pantaloons FY25 revenue up 1% to Rs. 4,373 Cr, EBITDA margin expanded ~400 bps to 16.9%.

• Ethnic business (ABFRL): FY25 revenue up 49% YoY, EBITDA margin up 400+ bps.

Outlook and guidance

• ABFRL targets threefold revenue growth and twofold margin expansion over five years.

• ABLBL plans to become debt-free in 2-3 years and accelerate growth using free cash flows.

• Pantaloons aims for at least 300 bps margin improvement in the next couple of years.

• TCNS expected to turn EBITDA positive by FY2027.

• Both entities expect significant value creation over the next five years.