Aditya Birla Fashion and Retail (ABFRL) Q1 26/27 earnings summary

Executive summary

• Revenue grew 11% year-over-year to INR 2,026 crores in Q1 FY27, with broad-based growth across key segments and strong retail channel performance.

• EBITDA margin declined to 8.2% from 9.3% last year, impacted by lower other income and investments in new businesses.

• Net loss widened to INR 249 crores from INR 234 crores YoY, mainly due to higher interest, depreciation, and finance costs from new store openings.

• Retail network expanded to over 1,286 stores, with more than 45 new stores and net area addition of ~70k sq. ft., now exceeding 7.9 million sq. ft.

• The quarter included the impact of major amalgamations and increased stake in a key subsidiary, with prior periods restated accordingly.

Financial highlights

• Consolidated revenue increased 11% YoY to INR 2,025.56 crores; standalone revenue was INR 1,558.07 crores.

• EBITDA stood at INR 167 crores with a margin of 8.2%; YoY decline due to lower treasury/other income and investments.

• Reported net loss was INR 248.73 crores, up from INR 233.73 crores YoY.

• Standalone gross cash at quarter-end was approximately INR 1,000 crores; expected to be INR 500 crores by year-end.

• Basic and diluted EPS (consolidated) for the quarter were both negative at (1.77).

Outlook and guidance

• Losses expected to narrow over the next two years, with full portfolio profitability targeted by FY 2029.

• Free cash flow positive by FY 2029-2030; annual cash funding requirement of INR 500-550 crores.

• Input cost pressures from inflation in raw materials, logistics, and wages remain a key monitorable.

• Focus remains on sustaining growth in established businesses, scaling new platforms, and improving profitability.

• The company continues to focus on integration and operational efficiency post-amalgamation.