Aditya Birla Fashion and Retail Limited announced its Q3FY26 financial results, demonstrating robust consolidated performance with 8% revenue growth and significant EBITDA expansion. The fashion retailer's consolidated operations reached ₹2,374 crores in revenue, driven by strong performance across ethnic businesses and new format expansion, marking a substantial improvement from earlier reported standalone figures.

Consolidated Financial Performance Shows Strong Growth

The company's consolidated financial performance for Q3FY26 demonstrated significant improvement across key metrics. Revenue grew 8% year-on-year to ₹2,374 crores, while EBITDA expanded by 13% to ₹370 crores with margin improvement of 70 basis points to 15.6%.

For the nine months ended December 31, 2025, revenue grew 10% year-on-year to ₹6,187 crores, while EBITDA expanded 17% to ₹655 crores with margin improvement of 70 basis points to 10.6%.

Business Segment Performance Analysis

The company's diversified business portfolio showed strong performance across multiple segments, with ethnic businesses leading growth momentum. New businesses delivered rapid expansion driven by strong like-to-like performance and network expansion.

Ethnic Business Portfolio Drives Strong Performance

The ethnic business segment emerged as a key growth driver, posting 20% year-on-year growth with significant margin expansion. The designer-led brand portfolio delivered exceptional performance with over 30% growth, driven by strong occasion-led demand and continued category expansion.

Retail Network Expansion and Digital Growth

The company expanded its retail footprint significantly with approximately 50 gross store additions during Q3FY26, bringing total retail space to over 7.7 million square feet. The e-commerce channel sustained strong momentum with over 15% year-on-year growth, enabled by stronger omni-channel capabilities and faster fulfillment.

Labour Code Impact and Operational Developments

The implementation of new Labour Codes by the Government of India on November 21, 2025, created exceptional charges due to past service costs from revised wage definitions affecting gratuity and compensated absences calculations. The company also completed significant corporate restructuring with Board approval for amalgamation of two wholly-owned subsidiaries.

The financial results demonstrate the company's successful portfolio diversification strategy, with newer businesses maintaining strong momentum while established formats show resilience. The ethnic business segment's multi-quarter trend of improving operating performance, combined with TMRW's margin expansion of approximately 900 basis points year-on-year, positions the company well for sustained growth as it approaches an inflection point in scale and profitability.

Source: ABFRL Press Release dated February 5, 2026

Aditya Birla Fashion & Retail Limited has announced key changes in its senior management structure, with the resignation of a division CEO and subsequent leadership restructuring effective from May 2026.

Leadership Transition in TCNS Division

Mr. Anant Kumar Daga, CEO of TCNS Division and Senior Management Personnel, has tendered his resignation from the company effective from close of business hours on April 30, 2026. The resignation has been attributed to personal reasons, as stated in the official communication to stock exchanges on January 29, 2026.

New Leadership Structure

To ensure continuity in operations, the company has appointed Mr. Sooraj Bhat to take additional responsibilities. Currently serving as CEO of Ethnic Business and Senior Management Personnel, Bhat will be re-designated to oversee both divisions.

Executive Profile

Mr. Sooraj Bhat brings extensive experience within the Aditya Birla Fashion and Retail ecosystem. His career trajectory includes:

• Current Position: CEO – Ethnic Business for ABFRL
• Previous Roles: Deputy CEO of Pantaloons, CEO of Fast Fashion division, and oversight of International Brands Division
• Tenure: Joined Madura Garments (now ABFRL) in 2002
• Recognition: Honored with "Exceptional Contributor for Business Success" in 2014 by the Aditya Birla Group Chairman
• Education: PGDM in Marketing and Strategy from IIM Bangalore, Mechanical Engineering from Regional Engineering College (now NIT) Calicut

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company has provided requisite details in annexures as mandated by regulatory requirements.

Organizational Impact

The leadership transition represents a strategic consolidation of operations under experienced management. With Bhat's extensive background across multiple divisions within the company, the move ensures operational continuity while leveraging his deep understanding of both ethnic wear and contemporary fashion segments.