Aditya Birla Fashion and Retail Limited (ABFRL) reported 8% Y-o-Y revenue growth to INR2,374 crores for Q3 FY26, despite festive and EOSS shifts impacting brands. Overall EBITDA grew 13% to 15.6% margin. Ethnic wear saw strong margin expansion, while Pantaloons maintained steady margins despite growth moderation. The company continues its strategic investments in network expansion and brand premiumization across segments.
Q3 FY26 Financial Performance Summary
Aditya Birla Fashion and Retail Limited (ABFRL) announced its Third Quarter Earnings Conference Call results for Q3 FY26. The company posted a Year-on-Year (Y-o-Y) revenue growth of 8%, reaching INR2,374 crores, up from INR2,201 crores the previous year. Overall EBITDA grew 13%, with margins expanding by 70 basis points to 15.6% compared to 14.9% in the corresponding period last year.
Reported net loss for the quarter stood at INR141 crores, which includes a one-time exceptional item related to the new Labor Code. The normalized loss was INR115 crores (vs. INR103 crores last year). ABFRL held gross cash of around INR2,100 crores as of December 2025.
On a Year-to-Date (YTD) basis, ABFRL revenue stood at INR6,187 crores (up 10% Y-o-Y), with EBITDA growing 17% to INR655 crores and margins improving to 10.6%, despite a 100 basis point higher advertisement spend.
Segmental Performance Highlights
Pantaloons
The Pantaloons segment revenue was INR1,276 crores with margins at 18.2%. The performance reflected a shift in festive and End-of-Season Sale (EOSS) dates into Q2 and Q4, respectively. Adjusted for these shifts, Like-to-Like (LTL) sales stood at 3%. The brand’s refreshed strategy focusing on premium brand proposition is showing early positive trends. The company expects mid- to high single-digit LTL growth in Pantaloons going forward, aiming for stores around 18,000 to 30,000 square feet in Tier 1 and metro cities.
Ethnic Wear
The ethnic business reported Q3 revenue of INR703 crores (up 20% Y-o-Y) despite the timing shift, with LTL at 10%. The portfolio delivered a 350 basis point Y-o-Y EBITDA margin expansion, reaching 22.7% for the quarter (an eighth consecutive quarter of margin expansion).
Within this portfolio, the designer-led segment remains highly profitable, while the premium ethnic brand Tasva posted 26% Y-o-Y revenue growth led by 8% LTL growth. The TCNS business saw flat revenue growth due to rationalization to 480 stores but delivered 8% LTL growth and saw margin improvement of approximately 500 basis points.
Luxury and Digital
The Collective & Mono brands (Luxury retail) delivered 16% Y-o-Y growth with improving profitability, adding 3 new stores. India’s first flagship luxury store, Galeries Lafayette, commenced operations in November 2025.
The digital brand portfolio, TMRW, grew 29% in Q3, operating at an annual revenue run rate of INR1,100 crores. This segment remains largely online, with 95% of its 9-month revenue coming from the online channel, although new offline stores are being opened.
Network and Strategy Update
ABFRL added a net 5.5 lakh square feet of area over the last 12 months, reaching an overall retail network of 1,226 stores across 7.7 million square feet.
Management expressed confidence that strategic initiatives across merchandising, store identity, and marketing investments are starting to pay off. The company is moving towards a path where its major businesses (Pantaloons and TCNS) are well-positioned to drive meaningful growth.
Source: BSE
