Aditya Birla Fashion Reports Q2 Loss, Demerger Impacting Results

Aditya Birla Fashion and Retail (ABFRL) reported a net loss of ₹90.89 crore for the quarter ended September 30, 2025. Results reflect the impact of the Madura Fashion & Lifestyle business demerger. Revenue from continuing operations stood at ₹1,981.66 crore. The company’s Board approved these results in a meeting held on November 4, 2025. This summary reflects both continuing and discontinued operations.

Financial Performance Overview

Aditya Birla Fashion and Retail Limited (ABFRL) has announced its unaudited standalone financial results for the quarter ended September 30, 2025, revealing a net loss of ₹90.89 crore. These results have been influenced significantly by the recent demerger of the Madura Fashion & Lifestyle (MFL) business. The Board of Directors approved these results at their meeting held on November 4, 2025.

Revenue and Expenses

Total income from continuing operations reached ₹2,036.20 crore, comprised of ₹1,981.66 crore in revenue from operations and ₹54.54 crore in other income. However, total expenses amounted to ₹2,148.75 crore, leading to a loss before tax from continuing operations of ₹326.03 crore.

Impact of the Demerger

The demerger of the Madura Fashion & Lifestyle business significantly impacts year-over-year comparisons. Revenue from the discontinued MFL business for the corresponding quarter last year was ₹1,760.51 crore and ₹3,636.95 crore for the six months. This demerger was sanctioned by the Hon’ble National Company Law Tribunal, Mumbai Bench (Hon’ble NCLT) on March 27, 2025, and became effective from May 1, 2025.

Key Financial Metrics

Key financial metrics for the quarter include:

  • Debt service coverage ratio: (5.65) times
  • Interest service coverage ratio: (5.69) times
  • Inventory turnover (annualised): 3.46 times
  • Operating margin: -2.56%

The total equity of the company stood at ₹6,690.00 crore as of September 30, 2025, and the earnings per share from continuing operations was (₹2.17).

Consolidated Results Highlight

The consolidated results show a loss after tax of ₹295.09 crore. These consolidated results include the entities as mentioned in the document.

Source: BSE

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