ABFRL shifts focus to value fashion, ethnicwear post lifestyle brands demerger

Navigating a period of strategic refinement, Aditya Birla Fashion and Retail (ABFRL) is shifting its organizational focus toward high-growth, mass-market segments following the recent demerger of its lifestyle brands business.

As of the fiscal year ending March 2026, the company reported revenue of Rs 8,177 crore, marking an 11 per cent year-on-year growth. This expansion was heavily anchored by the robust performance of the Pantaloons format, which delivered a 19 per cent Y-o-Y revenue increase.

The company is now channeling significant capital into its ‘OWND!’ value-retail brand, which recently crossed the 75-store milestone, to capture the growing demand from Gen-Z consumers in Tier-II and Tier-III urban corridors.

Portfolio optimization for long-term value

Through its recent restructuring, the company aims to achieve operational agility, allowing segments like ethnic wear and ‘TMRW’ - its digital-first fashion platform - to scale independently. Currently reaching an annual revenue scale exceeding Rs 2,200 crore, the company ethnicwear business continues to integrate high-profile designer partnerships with mainstream retail brands like W and Aurelia. Despite industry-wide headwinds in discretionary spending, the company’s emphasis on premiumization and elevated in-store experiences has shielded its market position. Its management remains committed to a disciplined store expansion strategy, having added over 180 locations in the last fiscal year, while simultaneously leveraging omni-channel capabilities to ensure seamless product delivery in an increasingly digitized retail landscape.

A dominant Indian fashion powerhouse, ABFRL manages a comprehensive portfolio ranging from value-fashion retail under Pantaloons and OWND! to premium ethnic wear and designer collaborations. Headquartered in Mumbai, the company operates thousands of stores nationwide, focusing on capturing India’s diverse and growing consumption segments. Currently, ABFRL is undergoing a strategic turnaround to improve profitability and operational efficiency.