Aditya Birla Lifestyle Brands (ABLBL) Q2 26/27 earnings summary

Executive summary

• Q2 revenue grew 11% YoY to ₹2,265.61 crore; EBITDA rose 15% and PAT increased 126% to ₹53.05 crore, marking a fourth consecutive quarter of double-digit growth.

• Growth reflected healthy like-to-like performance, operating leverage and momentum across brands and channels; management expects steady-state double-digit growth.

Financial highlights

• Q2 EBITDA was ₹390 crore, up 15% YoY, with consolidated margin expanding ~60 bps to 17.2%; PBT rose 127% to ₹70 crore.

• H1 revenue grew 11% to ₹4,311.35 crore and EBITDA rose 15% to ₹717 crore; PAT increased 73% to ₹82.07 crore.

• H1 consolidated operating cash flow was ₹403.89 crore, versus ₹283.48 crore YoY.

• MIS EBITDA grew faster than sales despite higher advertising investment; pre- and post-Ind AS margins expanded.

Outlook and guidance

• Management cited an 11%-12% growth outlook, with EBITDA growth potentially slightly higher; the longer-term aspiration is to move closer to 15%.

• H2 momentum is expected to benefit from an encouraging festive start and faster store expansion, with Q3 and beyond expected to deliver more expansion-led growth.

• Targeted price increases of 6% are expected to have their full effect in Q3; realization depends on consumer acceptance and discounting.

• Innerwear is expected to deliver one profitable quarter in FY27; FY27 CapEx of ₹300 crore remains on track.