Aditya Birla Fashion and Retail (ABFRL) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue grew 8% YoY to INR 2,374 crore, with EBITDA up 13% and margin expansion of 70 bps, despite mixed demand and festive calendar shifts impacting mass and premium segments.

• Ethnic and luxury portfolios delivered strong double-digit growth, while masstige/value segments were impacted by timing shifts of festive and end-of-season sales.

• Digital-first and new businesses, including TMRW, continued rapid growth, with TMRW sales up 29% YoY and losses peaking.

• Strategic focus remains on premiumization, network expansion, and improving profitability across segments, leveraging digital and omni-channel growth levers.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, reflecting the demerger of Madura Fashion & Lifestyle (MFL) Business.

Financial highlights

• Q3 FY26 consolidated revenue: INR 2,374 crore (up 8% YoY); EBITDA: INR 370 crore (up 13% YoY); EBITDA margin: 15.6% (up 70 bps YoY).

• Q3 FY26 reported loss: INR 137 crore (including exceptional Labour Code item); normalized loss: INR 115 crore vs INR 103 crore last year.

• YTD FY26 revenue: INR 6,187 crore (up 10% YoY); EBITDA: INR 655 crore (up 17% YoY); margin improved by 70 bps to 10.6%.

• Gross cash as of Dec 2025: INR 2,100 crore; consolidated net cash: INR 600 crore after debt and subsidiary borrowings.

• Exceptional item of INR 28.48 crore in consolidated results due to Labour Code-related past service cost.

Outlook and guidance

• Focus remains on premiumization, network expansion, and leveraging new growth levers such as digital and omni-channel.

• Pantaloons targets mid- to high-single-digit LTL growth and double-digit overall growth over the next two years.

• TCNS plans to add 50-60 stores next year, with breakeven expected in FY27; Tasva expected to reach breakeven by FY28; OWND! not expected to be profitable until at least FY29; TMRW projected to breakeven by FY29.

• Management continues to monitor Labour Code implementation and will update estimates as clarifications emerge.