Aditya Birla Fashion & Retail Limited (ABFRL) has reported a 13% year-on-year increase in revenue for the second quarter of fiscal year 2026, demonstrating continued growth momentum across its diverse portfolio of fashion brands. The company has also submitted monitoring agency reports showing no deviation from stated objectives for both its Rights Issue and Preferential Issue proceeds.

Financial Highlights

• Q2 FY26 revenue reached ₹1,982.00 crore, up from ₹1,761.00 crore in Q2 FY25
• EBITDA grew by 7% to ₹116.00 crore, compared to ₹108.00 crore in the same quarter last year
• EBITDA margin stood at 5.90%, impacted by increased marketing investments

Segment Performance

Notably, designer-led brands within the ethnic businesses grew over 30%.

Strategic Developments

ABFRL expanded its retail footprint with over 30 store additions during Q2, bringing its total retail area to 7.5 million square feet. The company also launched two new concepts:

1. OWND: A new fashion brand targeting Gen Z consumers
2. Galeries Lafayette: India's first luxury department store, set to open in November 2025

Operational Highlights

• Like-for-Like (LTL) growth was strong across segments, with Pantaloons at 7% and the ethnic business exceeding 20%
• E-commerce sales grew by over 20%, now accounting for more than 15% of the business
• The ethnic wear portfolio, including brands like Tasva and Jaypore, showed robust growth and improved profitability

Management Commentary

Ashish Dikshit, Managing Director of ABFRL, stated, "ABFRL sustained its growth momentum this quarter, delivering strong organic performance across all segments. Our newer businesses continue to scale rapidly, supported by strategic investments that strengthen capabilities, extend market reach, and ensure we stay ahead in an evolving fashion and lifestyle landscape."

Fund Utilization

ABFRL has reported no deviation in the utilization of funds raised through its Rights Issue and Preferential Issue:

• Rights Issue (₹995.12 crores from July 2020):

  • Fully utilized with ₹745.00 crores for debt repayment and ₹242.51 crores for general corporate purposes
  • Only ₹0.08 crores remain in the monitoring account

• Preferential Issue (₹2,378.75 crores):

  • ₹1,263.73 crores utilized across three objectives:
    • ₹1,015.42 crores for debt repayment
    • ₹22.97 crores for capex/opex investments in high-growth businesses
    • ₹225.34 crores for general corporate purposes
  • Remaining ₹1,115.02 crores deployed in various mutual funds and fixed deposits

Both Axis Bank Limited and ICRA Limited, serving as monitoring agencies, confirmed that fund utilization aligns with the disclosed objectives and reported no material deviations.

Employee Stock Options

The Nomination and Remuneration Committee approved the grant of 46,77,115 stock options to eligible employees under the ESOP Scheme 2025, comprising:

• 35,67,941 options priced at ₹85.38 per option
• 11,09,174 Performance Stock Units (PSUs) at ₹10.00 per PSU

Aditya Birla Fashion & Retail continues to strengthen its position in the Indian fashion retail market through strategic expansions, a focus on omnichannel capabilities, and prudent fund management, setting the stage for future growth in an evolving retail landscape.

Aditya Birla Fashion & Retail Limited (ABFRL), a leading Indian fashion powerhouse, has reported a robust 13% year-on-year revenue growth for the second quarter of fiscal year 2026, demonstrating strong momentum across its diverse portfolio of brands and retail formats.

Financial Highlights

ABFRL's consolidated revenue for Q2 FY26 stood at ₹1,982.00 crore, up from ₹1,761.00 crore in the same quarter last year. The company's EBITDA grew by 7% to reach ₹116.00 crore, with an EBITDA margin of 5.9%.

The company's performance was driven by strong growth across all segments, with the Pantaloons segment growing by 6%, ethnic businesses by 11%, and the TMRW digital brands portfolio expanding by 27% year-on-year.

Segment Performance

• Pantaloons: The segment reported a 6% year-on-year growth with quarterly sales of ₹1,142.00 crore. Like-for-like (LFL) growth stood at 7%.
• Ethnic Businesses: This portfolio grew by 11% year-on-year, with the designer-led brands showing over 30% growth.
• TMRW: The digital-first fashion brands under TMRW continued their strong performance with a 27% year-on-year growth.
• Luxury Retail: The segment, including The Collective and mono-brand stores, posted a 13% year-on-year growth.

Strategic Initiatives

ABFRL has made significant strides in expanding its presence across the value-luxury spectrum:

1. Launch of OWND: The company introduced OWND, a new fashion brand targeting Gen Z and youth consumers. OWND expanded to 59 stores by the end of Q2.

2. Galeries Lafayette: ABFRL is set to debut India's first luxury department store through its partnership with Galeries Lafayette, bringing together over 250 luxury and designer brands.

3. Ethnic Wear Expansion: The company's ethnic wear portfolio, including brands like Tasva and Jaypore, showed strong growth and network expansion.

4. Digital and Omni-channel Growth: E-commerce sales grew by over 20% year-on-year, with the digital share of business crossing 15% in Q2.

Outlook

Ashish Dikshit, Managing Director of ABFRL, commented on the results, saying, "ABFRL sustained its growth momentum this quarter, delivering strong organic performance across all segments. Our newer businesses continue to scale rapidly, supported by strategic investments that strengthen capabilities, extend market reach, and ensure we stay ahead in an evolving fashion and lifestyle landscape."

The company remains focused on driving scale and efficiency while transforming its brands to be more contemporary, aspirational, and vibrant. With a supportive macro environment, ABFRL is well-positioned to deliver sustained, profitable growth over the mid to long term.

As of September 30, 2025, ABFRL's presence spans 1,190 stores across 7.5 million sq.ft. of retail space, solidifying its position as a leader in India's fashion retail market.

Corporate Governance Update

In a separate announcement, ABFRL disclosed changes in its key managerial personnel. Mr. Anil Malik, Company Secretary and Compliance Officer, will retire effective November 30, 2025. Mr. Rajeev Agrawal has been appointed as the new Company Secretary and Compliance Officer, effective December 1, 2025.

ABFRL continues to strengthen its portfolio and expand its market presence, leveraging its diverse brand offerings and strategic initiatives to drive growth in the dynamic Indian fashion retail sector.