ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Aditya Birla Lifestyle Brands's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 32.83%.
As of today (2026-07-03), Aditya Birla Lifestyle Brands's WACC % is 12.09%. Aditya Birla Lifestyle Brands's ROIC % is 29.38% (calculated using TTM income statement data).
Aditya Birla Lifestyle Brands generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Aditya Birla Lifestyle Brands (NSE:ABLBL) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Aditya Birla Lifestyle Brands's WACC % is 12.09%. Aditya Birla Lifestyle Brands's ROIC % is 29.38% (calculated using TTM income statement data).
Aditya Birla Lifestyle Brands generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Aditya Birla Lifestyle Brands ROIC % Related Terms
Aditya Birla Lifestyle Brands ROIC % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Apparel Retail subindustry, Aditya Birla Lifestyle Brands's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Aditya Birla Lifestyle Brands ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Aditya Birla Lifestyle Brands's ROIC % distribution charts can be found below:
* The bar in red indicates where Aditya Birla Lifestyle Brands's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Aditya Birla Lifestyle Brands (NSE:ABLBL) has a ROIC % of 32.83% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Aditya Birla Lifestyle Brands and its competitors.
Is Aditya Birla Lifestyle Brands' ROIC % too high?
Aditya Birla Lifestyle Brands' current ROIC % is 32.83%. The Retail - Cyclical industry median ROIC % is 4.38. Aditya Birla Lifestyle Brands' value of 32.83% is 649.5% above this industry median. Overall, Aditya Birla Lifestyle Brands has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Aditya Birla Lifestyle Brands' ROIC % compare to TJX and ROST?
Aditya Birla Lifestyle Brands' ROIC % of 32.83% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.38. Aditya Birla Lifestyle Brands' value of 32.83% is 649.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.38, based on 1,108 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aditya Birla Lifestyle Brands's current ROIC % of 32.83% is 649.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Aditya Birla Lifestyle Brands and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aditya Birla Lifestyle Brands's current ROIC % is 32.83%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aditya Birla Lifestyle Brands stock overvalued right now?
Aditya Birla Lifestyle Brands (NSE:ABLBL) has a current ROIC % of 32.83%. The current ROIC % is 32.83% and 649.5% above the Retail - Cyclical industry median of 4.38. Aditya Birla Lifestyle Brands' overall GF Score™ is 16/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Aditya Birla Lifestyle Brands (NSE:ABLBL), the current ROIC % is 32.83% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Aditya Birla Lifestyle Brands Business Description
Aditya Birla Lifestyle Brands Ltd is a force in fashion, curating a distinguished portfolio of premium western wear brands. with a retail space spanning over 4.7 million sq. ft. across India, the company has a network of approximately 3,305 brand stores and presence across 37,000+ multi-brand outlets and 7000+ shop-in-shops across departmental stores. It has a repertoire of brands such as Louis Philippe, Van Heusen, Allen Solly and Peter England.
16GF Score
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