Aditya Birla Fashion & Retail has reported a robust 13% year-on-year revenue growth to ₹1,982.00 crores in the second quarter of fiscal year 2026. The company's performance was marked by healthy like-to-like growth across key segments, underlining the strength and diversity of its business portfolio.

Financial Highlights

• Revenue: ₹1,982.00 crores (13% YoY growth)
• EBITDA: 7% growth with margins at 5.9% (compared to 6.2% in Q2 FY25)
• H1 FY26 Revenue: ₹3,813.00 crores (11% YoY growth)
• H1 FY26 EBITDA: ₹286.00 crores (24% YoY growth)

Segment Performance

Pantaloons

• Revenue: ₹1,142.00 crores (6% YoY growth)
• Like-to-like growth: 7%
• EBITDA margin: 13.7%

Ethnic Portfolio

• Revenue: ₹505.00 crores (11% YoY growth)
• Like-to-like growth: Over 20%
• EBITDA margin: 200 basis points YoY expansion

Luxury Retail

• 13% YoY growth

TMRW (Digital Brand Portfolio)

• 27% YoY growth

Key Developments

1. New Brand Launch: Aditya Birla Fashion & Retail introduced OWND!, a Gen Z focused brand, opening its first store in Bengaluru.

2. Galeries Lafayette Partnership: The company unveiled its first India store in Kala Ghoda, Mumbai, spanning 90,000 square feet.

3. TMRW Funding: Successfully raised ₹450.00 crores during the quarter.

4. Ethnic Business Growth: The designer-led portfolio grew 32% YoY, with Sabyasachi and Goodview (Tarun Tahiliani) delivering 39% and 26% like-to-like growth, respectively.

5. Tasva Expansion: Posted 58% YoY revenue growth and achieved its fifth straight quarter of double-digit like-to-like growth at 38%.

6. TCNS Turnaround: Delivered strong like-to-like growth of 19% with a notable improvement in profitability.

Strategic Initiatives

Aditya Birla Fashion & Retail is focusing on several strategic initiatives to drive growth and profitability:

1. Pantaloons Revamp: Implementing a new retail identity and increased marketing investments to enhance brand positioning.

2. Ethnic Portfolio Expansion: Continuing to invest in designer-led brands and premium ethnic wear.

3. Digital Growth: Strengthening the omni-channel presence of digital brands under TMRW.

4. Luxury Segment: Expanding the luxury retail footprint with partnerships like Galeries Lafayette.

Outlook

Despite a challenging consumer environment, Aditya Birla Fashion & Retail has demonstrated strong and broad-based growth across segments. The company's strategic initiatives in brand building, partnerships, and retail excellence are expected to continue driving sustainable, profitable growth in the coming quarters.

Management remains confident about the company's trajectory, with expectations of improved performance in the second half of the fiscal year, particularly in the ethnic wear segment due to the wedding season.

Financial Position

As of September 2025, Aditya Birla Fashion & Retail held gross cash of ₹2,150.00 crores at the consolidated level, indicating a strong financial position to support its growth initiatives.

In conclusion, Aditya Birla Fashion & Retail's Q2 FY26 results reflect the company's resilience and strategic focus on diverse fashion segments, positioning it well for future growth in the Indian retail market.

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.