Q1 2027 Aditya Birla Fashion and Retail Limited Earnings Call Transcript
Key Points
- Aditya Birla Fashion and Retail Ltd (BOM:535755) reported an 11% YoY revenue growth to INR2,026 crore, with double-digit growth sustained across key businesses.
- The company's newer businesses, including TMRW, Galeries Lafayette, Wrogn, and Tasva, delivered around 30% YoY growth, showcasing strong scaling momentum.
- Pantaloons segment delivered a solid quarter with 7% revenue growth and 4% like-to-like growth, supported by improved merchandise and store experience.
- Tasva delivered robust growth of 35% YoY with double-digit like-to-like growth, marking the eighth consecutive quarter of positive performance.
- TMRW's cash losses narrowed further during the quarter, with a clear path to brand-level cash profitability over the next 12-18 months.
- The company reported a net loss of INR249 crore, wider than the INR234 crore loss in the prior year, due to higher interest, depreciation, and finance costs from new store openings.
- The Ethnic portfolio's growth was impacted by Adhik Maas and lower wedding-related purchases, leading to a modest 4% YoY growth.
- TCNS delivered a disappointing quarter with only 2% like-to-like growth, reflecting ongoing challenges in the business.
- The company faces input cost inflation of over 4%, which is expected to pressure gross margins in the second half of the year, as price hikes are only partially passed on.
- OWND, the new value retail format, is still in an investment phase and has not yet achieved segment-level profitability, dragging down overall segment margins.
Ladies and gentlemen, good day and welcome to the first-quarter earnings conference call of Aditya Birla Fashion and Retail Limited.
The call will begin with a brief discussion by the company's management on the Q1 FY27 performance, followed by a question-and-answer session.
(Operator Instructions) Please note that this conference is being recorded.
We have with us today Mr. Ashish Dikshit, Managing Director; Mr. Suraj Bahirwani, CEO, Pantaloons; and Mr. Jagdish Bajaj, CFO.
I want to thank the management team, on behalf of all the participants, for taking their valuable time to be with us.
I must remind you that today's discussion may include certain forward-looking statements and, therefore, must be viewed in conjunction with the risks that the company faces.
Please restrict your questions to the quarter performance and to the strategic questions only. Housekeeping questions can be dealt separately with the IR team.
With that, I would now like to hand the conference over to Mr. Jagdish Bajaj. Thank you and over to you, sir.
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