ABFRL Q2 Revenue Up 2% YoY, EBITDA Down 43%

Aditya Birla Fashion and Retail Limited – Investor Presentation Summary

Key Operational Highlights

Total store footprint of 5,677 stores as of September 2026, covering 7.5 million sq. ft. (Includes 11 international stores).
Gross addition of 35 stores across brands in Q2 FY27, led by TMRW brands, TCNS, and the masstige & value segment.
Over 80 new stores added in H1 FY27.
OWND (owned brands) scaled 58% YoY in Q2 and is now available at 90 stores.
Pantaloons' e-commerce grew 19% YoY in Q2, with a mix of ~4%.
Key drivers include expansion in lower tier markets, impactful festive campaigns, and scaling of newer digital-first and luxury businesses.

Segment-wise Performance

Pantaloons Segment: Q2 FY27 revenue of ₹1,140 Cr (0% YoY growth). EBITDA of ₹119 Cr (10.5% margin). On a festive-adjusted basis and excluding store closures, growth would have been ~10% YoY. Q2 LTL (Like-to-Like) sales at -7%, but non-East markets delivered +2% LTL growth.
Ethnic Businesses: Q2 FY27 revenue of ₹517 Cr (2% YoY growth). EBITDA of -₹17 Cr (-3.3% margin). The ethnic portfolio grew 12% YoY excluding TCNS. Performance moderated due to festive shift and brand investments in designer brands.
TMRW: Q2 FY27 revenue of ₹244 Cr (10% YoY growth). EBITDA of -₹41 Cr (-16.8% margin). Including WROGN, portfolio growth stood at 19% YoY. Continued reduction in losses for the fourth consecutive quarter.
Others (Luxury Retail): Q2 FY27 revenue of ₹158 Cr (11% YoY growth). EBITDA of ₹12 Cr (7.6% margin). Growth supported by ongoing scale-up of Galeries Lafayette.
Explanation of changes: Pantaloons performance was significantly impacted by the shift of the Pujo festival to Q3, primarily affecting East India markets. The Ethnic portfolio's growth was driven by strong performance in designer-led brands, though profitability was affected by investments. TMRW's growth was broad-based across its portfolio of digital brands.

Financial Highlights

Revenue: ₹2,030 Cr (Consolidated, Q2 FY27)
EBITDA: ₹67 Cr (Consolidated, Q2 FY27)
PAT: -₹376 Cr (Consolidated, Q2 FY27)
EPS: Not Specified
Margins: EBITDA Margin of 3.3% (Consolidated, Q2 FY27)
YoY comparison: Revenue up 2%, EBITDA down 43%, PAT down 27% (from -₹295 Cr in Q2 FY26).
H1 FY27 Performance: Revenue of ₹4,056 Cr (up 6% YoY), EBITDA of ₹233 Cr (down 18% YoY), PAT of -₹625 Cr.
Drivers of financial performance: Lower EBITDA due to festive shift-led negative operating leverage and scale-up of newer businesses (OWND and Galeries Lafayette).
Comparison to market estimates: Not Provided.
Key Risks: Disclosed risks include input and logistics cost rises amidst supply constraints and commodity price volatility, and structural pressures on rental and manpower costs.

Geographical Revenue Split

Domestic vs Export: Not Specified in quantitative terms.
Regional Breakdown: Performance commentary notes that a late festive season impacted YoY growth in Q2, with early encouraging trends noted during Onam (South India) and Pujo (East India). The Pantaloons format was specifically impacted in East India due to the Pujo shift.

Balance Sheet Snapshot

Net Worth: ₹5,634 Cr (Consolidated, Sep-26)
Net Debt: ₹1,209 Cr (Consolidated, Sep-26), increased from ₹149 Cr in Mar-26.
Gross Debt: ₹2,351 Cr (Consolidated, Sep-26)
Cash and Liquid Investments: ₹1,143 Cr (Consolidated, Sep-26)
Lease Liability: ₹4,611 Cr (Consolidated, Sep-26)
Net Block (incl. CWIP): ₹3,933 Cr (Consolidated, Sep-26)
Goodwill: ₹2,671 Cr (Consolidated, Sep-26)
Right to Use Assets: ₹3,922 Cr (Consolidated, Sep-26)
Net Working Capital: ₹626 Cr (Consolidated, Sep-26)
Financial Health Insights: The increase in net debt reflects the ongoing business investments and expansion activities.

Capex & Cash Flow Health

Capital Expenditure: Not explicitly quantified for the period, but expansion activity included 35 gross store additions in Q2.
Free Cash Flow: Not Specified.
Operating Cash Flow: Not Specified.
Net Debt Movement: Increased by ₹1,060 Cr from Mar-26 (₹149 Cr) to Sep-26 (₹1,209 Cr).
Investment Rationale: Strategic expansion focused on TMRW brands, TCNS, and the masstige & value segment, alongside scaling newer businesses like Galeries Lafayette.

Strategic & R&D Initiatives

Investments in Innovation: Focus on elevating brand presence through social media and digital storytelling (Pantaloons), expanding into adjacent categories (TMRW brands), and launching new product lines in beauty (LoveChild by Masaba).
Expected impact on growth: Not quantitatively specified, but initiatives are aimed at driving consumer engagement and brand salience, particularly during the festive season.
Strategic Rationale: Reimagining Pantaloons as a young & fashion-forward brand, building Indian luxury brands for the global market (e.g., Sabyasachi), and scaling the omnichannel presence of digital-first brands.

Industry Trends & Business Environment

Macro/Industry Trends: Overall consumer demand remained steady with stronger traction in lower tier and rural markets. Retail expansion continued by value retail formats, mostly in lower tier markets. Input and logistics costs are rising amidst supply constraints and commodity price volatility. Rental and manpower costs face structural pressures.
Impact on Company: The late festive season and subdued wedding calendar softened occasion-led purchases, directly impacting Q2 growth, particularly in the Pantaloons and Ethnic segments. Cost pressures are noted as a factor affecting margins.

Management Commentary & Growth Outlook

Strategic Outlook: The festive season began on a strong footing with early signs across key regional markets pointing to a robust start, noting encouraging trends during Onam and Pujo.
FY Guidance: Not explicitly provided.
Market Share Targets: Not Specified.
Risks and Opportunities: Management highlighted the evolving cost landscape (input, logistics, rental, manpower) as a challenge. The late festive shift in Q2 and its impact on performance was a key discussion point, with expectations built around a strong Q3 festive performance.