08 February 2026, Mumbai
Aditya Birla Fashion and Retail (ABFRL) reported a consolidated net loss of Rs 137.3 crore for the quarter ended December 31, 2025, widening from a Rs 102.7 crore loss in the previous fiscal. This fiscal contraction was largely attributed to an exceptional outgo of Rs 28.5 crore linked to the implementation of the new Union Labor Codes, which revised wage definitions for gratuity and compensated absences. Despite the bottom-line pressure, consolidated revenue rose 8 per cent to Rs 2,374 crore. This top-line growth indicates a resilient market position, even as the company navigates a soft consumption environment characterized by weaker-than-anticipated footfalls in the value and masstige segments.
Premiumization drives margin expansion
The company’s strategic pivot toward high-margin categories is yielding significant dividends. The ethnic wear portfolio, now operating at an annual recurring revenue (ARR) of over Rs 2,000 crore, increased by 20 per cent Y-o-Y. Notably, the designer-led segment - including brands like Sabyasachi and Tarun Tahiliani - delivered over 30 per cent growth, with Sabyasachi crossing the Rs 200 crore quarterly revenue milestone for the first time. This shift toward ‘occasion-led’ shopping helped expand consolidated EBITDA by 13 per cent to Rs 370 crore, with margins improving by 70 basis points to 15.6 per cent. The portfolio is evolving into a well-balanced architecture across multiple categories, stated a senior executive, noting that newer digital-first brands under the TMRW umbrella also grew 29 per cent.
Operational streamlining post-demerger
The current fiscal period marks a transition following the demerger of the Madura Fashion & Lifestyle business into the separately listed Aditya Birla Lifestyle Brands Limited (ABLBL). ABFRL is now focusing its capital allocation on rapid-growth platforms, including luxury retail and ethnic wear. During the quarter, the company added 50 gross stores, expanding its total footprint to 7.7 million square feet. While the Pantaloons segment faced moderate pressure due to shifting festive cycles, achieving a modest 3 percent like-for-like growth, the luxury segment grew 27 percent, bolstered by the new Galeries Lafayette flagship. Looking ahead, ABFRL plans to raise approximately Rs 2,500 crore in equity capital to deleverage its balance sheet and fund the next phase of its ‘Vision 2030’ retail expansion.
ABFRL is India’s first billion-dollar pure-play fashion powerhouse, specializing in ethnic wear, luxury retail, and digital-first brands. Operating over 7.7 million square feet of retail space, the company plans to double its ethnic business scale while achieving zero net debt through strategic equity raises and operational efficiency gains over the next three years.
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