Q1 2026 Aditya Birla Fashion and Retail Ltd Earnings Call Transcript
Key Points
- Aditya Birla Fashion and Retail Ltd (BOM:535755) reported a 9% YoY increase in revenue for Q1 FY26, reaching INR1,831 crores, driven by strong performance across key segments.
- The ethnic and TMRW businesses delivered impressive growth of 25% and 38% respectively, showcasing the strength of their brand portfolios and expanding consumer reach.
- EBITDA rose to INR169 crores, up 38% YoY, supported by a strong expansion in the ethnic business, where margins improved by 600 basis points.
- The company successfully completed the demerger process, resulting in the creation of Aditya Birla Lifestyle Brands Limited, which was listed on the stock exchange.
- Aditya Birla Fashion and Retail Ltd (BOM:535755) held a gross cash position of INR2,070 crores as of June 2025, indicating strong liquidity.
- The broader market sentiment remains cautious, and the pace of recovery continues to be gradual, impacting overall growth.
- Pantaloons segment reported a marginally lower segmental margin of 17.1% due to lower sales, despite maintaining an EBITDA margin of 18% plus.
- The TMRW business, while showing strong revenue growth, reported higher losses this quarter, indicating ongoing challenges in achieving profitability.
- The company has undergone a significant network correction in Pantaloons, reducing the number of stores, which may impact short-term growth.
- Despite improvements, the TCNS business is still somewhat below the breakeven level pre-IndAS, indicating ongoing challenges in achieving profitability.
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 FY26 performance, followed by a question-and-answer session.
We have with us today Mr. Ashish Dikshit, Managing Director; ABFRL; and Mr. Jagdish Bajaj, CFO; ABFRL. 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 certain forward-looking statements and must be viewed, therefore, in conjunction with the risks 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.
Thank you. Good evening, everyone. Welcome to the Q1 FY26 Earnings
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