ABFRL to boost Pantaloon boost EBITDA margin post demerger from ABLBL

02 September 2025, Mumbai 

Following the demerger of its lifestyle business, Aditya Birla Lifestyle Brands (ABLBL), Aditya Birla Fashion and Retail (ABFRL) aims to improve the EBITDA margin of its retail chain, Pantaloons, by 300 basis points over the next five years.

According to Mangalam Birla, Chairman, ABFRL will focus on profitability and strengthening its retail network. The company's long-term strategy is to establish a presence across all major fashion trends that align with changing consumer behavior, he states.

ABFRL's portfolio now includes the Pantaloons retail chain, digital-first brands under its TMRW division, and a variety of ethnic wear brands. This includes designer collaborations with renowned names like Sabyasachi, Shantnu & Nikhil, House of Masaba, and Tarun Tahiliani, as well as premium ethnic wear from Jaypore, Tasva, and the TCNS portfolio.

In contrast, the demerged entity, Aditya Birla Lifestyle Brands (ABLBL), which was listed in June, manages brands like Louis Philippe, Van Heusen, Allen Solly, Peter England, Reebok, and American Eagle.

To support its growth plans, ABFRL has secured a $490 million capital infusion through a combination of a qualified institutional placement (QIP) and a preferential issue.

ABFRL's expansion strategy includes adding 20-25 new Pantaloons stores annually. The company expects each new store to become profitable within its first year and achieve a payback period of about four years.

Additionally, ABFRL plans to expand its value fashion chain, Style Up. The company will focus on improving ‘unit economics’ by increasing sales per sq ft and overall profitability. It aims to open around 50 new Style Up stores in fiscal year 2025-26 and scale the network to more than 200 stores by fiscal year 2027-28.

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