Aditya Birla Fashion and Retail Limited (ABFRL) delivered consolidated revenue from operations of ₹8,177 crore in FY2025-26, marking 11% year-on-year growth. The company's EBITDA stood at ₹967 crore, with an EBITDA margin of 11.80%, as disciplined execution and improving operating leverage across key businesses supported earnings quality. The company simultaneously filed its Integrated Annual Report for FY2025-26 with the stock exchanges and announced its 19th Annual General Meeting, scheduled for August 25, 2026 at 3:30 p.m. IST via Video Conferencing.

FY2025-26 Financial Performance

The company's consolidated financial performance for FY2025-26 reflects broad-based revenue growth alongside continued investment in technology, retail expansion, and future growth platforms. E-commerce revenue grew over 20% year-on-year, contributing approximately 16% of total revenue. The company added over 180 new stores during the year, resulting in a net retail space addition of approximately 0.6 million sq. ft.

FY25 & FY26 PAT includes exceptional gain/(loss) of ₹161.15 crore and (₹39.86) crore, respectively.

As at March 31, 2026, the company maintained a standalone gross cash balance of ₹1,150 crore. At a consolidated level, gross debt stood at ₹1,695 crore, while net debt was ₹149 crore.

Segment-Wise Performance

The company operates across four broad segments — Masstige and Value Retail, Ethnic Wear, Digital-First Brands (TMRW), and Luxury Retail — each recording distinct growth trajectories during FY2025-26.

Masstige and Value Retail

The Masstige and Value Retail segment delivered revenue of ₹4,560 crore in FY26, reflecting 4% year-on-year growth. EBITDA was at ₹739 crore, with an EBITDA margin of 16.2%. Pantaloons' retail network comprised 399 stores spanning 28 states and Union Territories. The value fashion format OWND expanded its store network to 79 stores, with 34 stores added during FY26.

Ethnic Wear

The Ethnic segment delivered strong performance with annual revenue of ₹2,227 crore, reflecting 14% year-on-year growth. EBITDA more than doubled from ₹102 crore in FY2024-25 to ₹242 crore in FY2025-26, a growth of 137%, with EBITDA margin expanding from 5.2% to 10.8%. The segment delivered 16% like-to-like growth during the year. The ethnic portfolio expanded to more than 680 stores, with over 80 new store additions.

Within the segment, TASVA reported 38% growth in sales in FY2025-26 with double-digit like-to-like growth, and its network reached 94 stores. Jaypore witnessed strong double-digit growth of 23% in FY2025-26. TCNS delivered 10% like-to-like growth, with full-year cash losses reducing by more than half compared to the previous year.

TMRW — Digital-First Brands

TMRW's portfolio delivered revenue of ₹876 crore in FY2025-26, an increase of 34% year-on-year. Including Wrogn, business revenue reached approximately ₹1,100 crore. EBITDA loss was contained at ₹207 crore in FY2025-26, compared to ₹206 crore in FY2024-25. During the year, TMRW secured its first external investment of ₹437 crore from ServiceNow Ventures. The platform expanded its offline presence to approximately 120 exclusive stores across brands.

Luxury Retail

The Luxury segment registered revenue of ₹596 crore, growing 15% year-on-year. EBITDA was ₹175 crore in FY2025-26, a growth of 23% over the previous year, with EBITDA margin improving by 190 basis points to 29.4%. The Collective and Mono Brands (TCMB) delivered 9% year-on-year growth, while the segment was further supported by the launch of Galeries Lafayette in Mumbai in November 2025 — India's first luxury department store of its kind, spread across 90,000 square feet in Kala Ghoda.

Retail Footprint and Digital Capabilities

As at March 31, 2026, ABFRL's retail network comprised 1,273 stores spanning nearly 7.9 million square feet. The company's omnichannel ecosystem integrates exclusive brand outlets, brand websites, mobile applications, and digital marketplaces. More than 65% of the Pantaloons store network is omni-enabled. The company's digital infrastructure is built on SAP S/4HANA and Dynamics 365 POS/CRM platforms, with AI-driven analytics deployed across demand forecasting, merchandising, and customer engagement.

Credit Rating and Capital Position

CRISIL Ratings reaffirmed its 'CRISIL AA+/Stable/CRISIL A1+' ratings on the bank facilities and debt instruments of ABFRL. The company's consolidated gross debt stood at ₹1,695 crore as at March 31, 2026, while net debt was ₹149 crore.

Annual General Meeting

The 19th Annual General Meeting of ABFRL is scheduled for Tuesday, August 25, 2026 at 3:30 p.m. IST, to be held through Video Conferencing/Other Audio-Visual Means. The Integrated Annual Report for FY2025-26 is accessible on the company's website. Key agenda items include adoption of audited financial statements, re-appointment of a director retiring by rotation, re-appointment of statutory auditors Price Waterhouse & Co Chartered Accountants LLP for a second term of five years, and re-designation of Ms. Sangeeta Tanwani as a Non-Executive Non-Independent Director effective August 1, 2026.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE647O01011/6b886e95d7a64c0e.pdf

Aditya Birla Fashion & Retail faces a regulatory penalty after the Assistant Commissioner of Sales Tax, Nagole GST Division, Hyderabad, issued an order dated July 24, 2026, imposing a fine of ₹51,52,528. The penalty arises from a dispute concerning input tax credit (ITC) availed by the company during FY20-21, specifically regarding inward supply documents where the vendor defaulted in filing returns. Although the company asserts that the tax has already been reversed and parallel proceedings for demand have been issued, the authority maintained the penalty under Section 74 of the Central Goods and Services Tax Act, 2017.

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Rajeev Agrawal, Company Secretary & Compliance Officer, signed the communication on July 25, 2026, notifying the stock exchanges of the order received the previous day.

Penalty Details

Nature of Dispute

The scrutiny pertains to returns filed for FY20-21. The core issue involves the claim of input tax credit on grounds of vendor default in non-filing of returns. The company notes that the dispute relates to ISD ITC availed, for which tax has already been reversed. Additionally, the company states that a parallel proceeding for which demand has already been issued is ongoing. This suggests the financial liability may be contested on procedural and substantive grounds regarding the reversal of tax.

Company Response and Impact

Aditya Birla Fashion & Retail Limited stated that the order has no impact on its financials, operations, or other activities. Management believes the demand is not tenable as per the law. The company intends to file a suitable appeal against the order before The Appellate Authority. Investors should monitor subsequent filings for updates on the appeal process and any potential resolution of the underlying ITC dispute.

What the Numbers Show

The penalty amount of ₹51,52,528 represents a specific regulatory cost arising from compliance discrepancies in FY20-21 rather than an operational failure in current periods. The fact that the company has already reversed the tax indicates that the primary financial exposure related to the tax liability itself may have been mitigated, leaving the penalty as the remaining contentious item. The reliance on vendor default for ITC claims highlights a common friction point in GST compliance, where downstream entities bear the burden of upstream non-compliance until clarified through appellate processes.