Aditya Birla Fashion and Retail Limited (ABFRL) reported a 13% year-over-year revenue growth in Q2 FY26, reaching INR1,982 crores. Luxury, ethnic, and TMRW segments drove performance. Despite cautious consumer sentiment, all segments showed healthy like-to-like growth. The company launched OWND!, a new Gen Z-focused brand, and unveiled its first Galeries Lafayette store in Mumbai. ABFRL’s retail network now includes 1,190 stores spanning 7.5 million square feet.
Financial Performance
Aditya Birla Fashion and Retail Limited announced a strong Q2 FY26 performance, achieving revenue of INR1,982 crores, a 13% year-over-year increase. EBITDA grew by 7%, with margins at 5.9%. This growth was driven by luxury, ethnic, and TMRW segments.
Segment Highlights
Pantaloons: Revenue reached INR1,142 crores, a 6% growth. Like-to-like growth stood at 7%. Launched new curated collections and signed its first brand ambassador. Opened 10 new OWND! stores, with 59 stores total.
Ethnic Business: Despite a muted wedding season, the ethnic portfolio grew 11% year-over-year, with revenue at INR505 crores. Excluding TCNS, growth was 34% year-over-year. Like-to-like growth exceeded 20%.
TCNS: Delivered strong like-to-like growth of 19%. Launched Wishful, a high-growth occasion-wear segment.
Luxury Retail: Delivered another strong quarter with 13% year-over-year growth, driven by e-commerce and healthy like-to-like growth. Added 2 new stores, totaling 46.
TMRW: Grew by 27% versus last year, driven by portfolio expansion and celebrity associations. The portfolio now has 29 stores, including 75+ WROGN stores.
Strategic Initiatives
ABFRL focused on brand building, partnerships, and retail excellence. TMRW successfully raised INR450 crores in Q2. Launched OWND!, a new Gen Z-focused brand, opening its first store in Bengaluru. Unveiled first India store of Galeries Lafayette in Mumbai, spanning 90,000 square feet.
Looking Ahead
The company anticipates improved cash realization in the second half of the year. A sharp increase in profitability for the ethnic business is expected in the second half. The company plans to continue strategic investments in brand building and marketing.
Source: BSE
