Aditya Birla Fashion and Retail Limited (ABFRL) announced its financial results for the Second Quarter of Fiscal Year 2027. The company reported a revenue of INR2,030 crore, marking a 2% year-on-year growth. This performance was influenced by a shift in the festive calendar and a subdued wedding season, impacting consumer purchasing timing. The company highlighted strong contributions from its emerging businesses, including ethnic wear, luxury, and TMRW.
Aditya Birla Fashion and Retail Reports Q2 FY27 Results
Aditya Birla Fashion and Retail Limited (ABFRL) has disclosed its financial performance for the Second Quarter of Fiscal Year 2027 (Q2 FY27). The company recorded a revenue of INR2,030 crore, reflecting a 2% year-on-year increase.
Performance Context and Key Drivers
The company noted that the demand trends during the quarter were broadly in line with previous periods. However, the year-on-year performance was impacted by the shift of the festive calendar, including Pujo, into the third quarter of this year, alongside a subdued wedding season. This timing shift in consumer purchases particularly affected Pantaloons and ethnic businesses, which constitute approximately 80% of ABFRL’s portfolio, thereby moderating overall revenue growth and operating leverage.
Despite these challenges, ABFRL observed momentum across its businesses, with its emerging growth platforms gaining scale. The ethnic portfolio, excluding TCNS, grew by 12%, while luxury brands saw an 11% growth. TMRW grew by 10%, and OWND demonstrated robust growth with a 58% year-on-year increase, supported by contributions from new stores. On a festive-adjusted basis, Pantaloons segment achieved a 10% year-on-year growth in Q2.
Profitability and Strategic Focus
EBITDA for the quarter stood at INR67 crore. The decline in profitability was attributed to the festive consumption shift impacting operating leverage and continued investments in scaling newer businesses. ABFRL reiterated its commitment to profitable growth, focusing on improving operating efficiencies, enhancing store productivity, and building a more profitable business model.
Balance Sheet and Network Expansion
The company closed Q2 with gross cash of INR1,143 crore at the consolidated level and INR628 crore at the standalone level, ensuring sufficient liquidity. ABFRL continued its calibrated expansion of its retail network, adding 35 stores in Q2, bringing the total additions in the first half to over 80 stores. The total retail network now comprises 1,268 stores, covering approximately 7.8 million square feet.
Segmental Performance Highlights
Pantaloons: On a like-for-like basis, adjusting for the festive season shift and 16 store closures, the business reported approximately 6% year-on-year growth in Q2. Efforts to enhance merchandise freshness, assortment, and customer experience are ongoing.
OWND: This segment delivered a strong 58% year-on-year revenue growth, supported by network scaling and merchandise improvements. The retail network for OWND stands at 90 stores.
Ethnic Portfolio: Reported revenue of INR517 crore, a 2% year-on-year growth. Excluding TCNS, the portfolio grew by 12%, with designer-led brands showing healthy double-digit revenue growth.
Premium Ethnic Brands (Tasva): Tasva achieved double-digit revenue growth in the first half of the year, focusing on men’s occasion wear with 92 stores.
TCNS and Jaypore: TCNS faced near-term challenges, with efforts focused on turnaround through sharper product offerings and network rationalization. Jaypore delivered a healthy quarter with reduced losses.
Luxury Retail: The portfolio reported a strong 20% growth in the first half, driven by The Collective, Mono Brands, and Galeries Lafayette.
TMRW: This business reported 10% year-on-year revenue growth, increasing to 19% when including WROGN. Profitability improved year-on-year for the fourth consecutive quarter.
Outlook for H2 FY27
ABFRL is confident of delivering a stronger second half (H2 FY27), historically a better period for revenue, profitability, and cash generation. The company remains focused on driving profitable growth across its portfolio, anticipating positive momentum from the ongoing festive and wedding-led demand.
Source: BSE
