Aditya Birla Fashion & Retail Ltd (ABFRL) has declared its Q2 FY2025 results, reflecting steady top-line growth despite ongoing business restructuring. The company recorded a 13% year-on-year rise in revenue, supported by healthy demand in its Lifestyle and Pantaloons segments. However, profitability remained under pressure due to integration costs and elevated operating expenses.
Key Financial Highlights
| Metric | Q2 FY2025 | Q2 FY2024 | YoY Growth |
|---|---|---|---|
| Revenue | ₹3,644 crore | ₹3,226 crore | +13% |
| Net Profit (Loss) | -₹234 crore | -₹196 crore | Loss widened |
| EBITDA | ₹410 crore | ₹349 crore | +17.5% |
| EBITDA Margin | 11.2% | 10.8% | +40 bps |
| EPS | -₹2.1 | -₹1.8 | — |
Management Commentary
The company emphasized progress in brand integration and margin stabilization despite challenging retail conditions. Management noted that the ongoing demerger and full amalgamation of TCNS Clothing (effective September 2024) is expected to strengthen its ethnic and premium wear portfolio.
ABFRL stated that its digital-first TMRW platform and emerging categories like activewear and innerwear continue to post robust growth, signaling the effectiveness of its omni-channel retail strategy.
“Our focus remains on improving profitability through operational efficiency and disciplined expansion,” said the management during the earnings call.
Segment Performance
Lifestyle Brands
- Revenue: ₹1,636 crore (up 3% YoY)
- EBITDA Margin: 18.4%
- Premium and luxury brands such as Louis Philippe, Allen Solly, and Van Heusen delivered stable growth despite a slow discretionary demand environment.
Pantaloons & ABLBL Segment
- Revenue: ₹1,975 crore
- EBITDA: ₹302 crore (15.3% margin)
- Pantaloons revenue reached ₹1,082 crore with 3% growth, supported by improved store productivity.
Emerging & Digital Businesses
- Revenue Growth: 7% overall
- TMRW digital brands doubled their revenues, with a 30% organic growth rate nearing ₹1,000 crore annualized run-rate.
- The Ethnic business surged over 3x, led by TCNS, Jaypore, and Tarun Tahiliani couture labels.
Market Reaction
Post-results, ABFRL’s stock traded mildly lower on the NSE as investors weighed the company’s consistent revenue growth against persistent quarterly losses. The counter closed around ₹218 per share on October 8, 2025, down about 1% intraday.
Analysts noted that while the top line remains strong, sustained improvement in net margins will be key to future stock re-rating.
Peer Comparison
Compared to competitors like Trent Ltd. and Shoppers Stop, ABFRL’s growth trajectory remains steady but margins lag behind due to its ongoing business restructuring. Trent continues to lead in profitability metrics with double-digit PAT margins, whereas ABFRL is focusing on scaling newer verticals before achieving profit turnaround.
Future Outlook
Analysts expect Q3 FY2025 to benefit from festive season demand and better cost leverage. The completion of the TCNS merger and continued digital expansion via TMRW are likely to enhance revenue visibility. However, profitability improvement may remain gradual in the near term.
Brokerages project FY2026 to mark a return to profitability, supported by higher brand contribution margins and reduced one-time integration costs.
FAQs
What was Aditya Birla Fashion’s net profit this quarter?
ABFRL reported a net loss of ₹234 crore in Q2 FY2025 due to ongoing restructuring and elevated expenses.
Did ABFRL beat market expectations?
Revenue was largely in line with estimates, though losses were slightly higher than analyst projections.
How did ABFRL’s margins perform this quarter?
EBITDA margin improved to 11.2%, reflecting better cost control and efficiency across Lifestyle and Pantaloons segments.
Conclusion
Aditya Birla Fashion’s Q2 FY2025 results reflect a company in transition — growing consistently in revenue while restructuring for long-term profitability. With strong brand equity, digital expansion, and portfolio realignment, ABFRL remains well-positioned to capitalize on India’s evolving retail landscape once short-term pressures ease.
