Q4 2025 Aditya Birla Fashion and Retail Ltd Earnings Call Transcript
Key Points
- Aditya Birla Fashion and Retail Ltd (BOM:535755) successfully completed the demerger, creating two focused fashion powerhouses, which are now set on independent high-growth trajectories.
- The company raised USD 490 million of equity capital, strengthening its balance sheet with INR2,350 crores cash available for growth.
- Both entities delivered robust profitability, with ABLBL achieving a 200 basis points margin expansion and demerged ABFRL more than doubling its EBITDA.
- Pantaloons segment achieved significant EBITDA margin expansion of 480 basis points, reaching 15.1%, marking its sixth consecutive quarter of margin improvement.
- The Ethnic wear segment reported a robust 19% Y-o-Y growth in Q4, with profitability improving sharply and EBITDA margin expanding by 700 basis points to 10.1%.
- The industry faced strong macro headwinds with sustained impact on consumer discretionary consumption, affecting overall performance.
- Revenue performance was marginally impacted by the closure of Forever 21's offline operations.
- TCNS saw a revenue decline during the quarter due to ongoing distribution rationalization.
- The company is still working on turning around loss-making businesses like TCNS and Tasva, which are currently suppressing overall margins.
- The Style Up brand, while showing growth potential, may initially dilute margins due to its expansion strategy.
Ladies and gentlemen, good day, and welcome to the fourth 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 Q4 FY '25 and FY '25 performance followed by a question-and-answer session.
We have with us today Mr. Ashish Dikshit, Managing Director, ABFRL and ABLBL; Mr. Jagdish Bajaj, CFO, ABFRL; Mr. Vishak Kumar, Deputy Managing Director and CEO, ABLBL; Mrs. Sangeeta Tanwani, Director and CEO, Pantaloons.
I want to thank the management team on behalf of all the participants for taking valuable time to be with us.
I must remind you that today's discussion may include certain forward-looking statements and must be viewed, therefore, in conjunction with the risk that the company faces. Please restrict your questions to the quarter performance and to strategic questions only. Housekeeping questions can be dealt separately with the IR team.
With this, I hand the conference over to Mr. Jagdish Bajaj. Thank you, and over to you, sir.
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