ABFRL Delivers Strong Q3, Revenue Up 8%

Aditya Birla Fashion and Retail Limited (ABFRL) reported steady growth in the third quarter of FY26, supported by strong momentum in its new businesses, continued expansion of its retail network and improving operating efficiencies across key segments.

The company recorded revenue of Rs 2,374 crore in Q3 FY26, registering an 8 percent year-on-year increase, while EBITDA rose 13 percent to Rs 370 crore. EBITDA margin improved to 15.6 percent, up 70 basis points compared with the same period last year. However, profit after tax (reported) stood at a loss of Rs 137 crore, compared with a loss of Rs. 103 crore in Q3 FY25, largely reflecting exceptional items related to the statutory impact of the new Labour Code.

For the nine months ended December 2025, revenue reached Rs 6,187 crore, up 10 percent year-on-year, while EBITDA expanded 17 percent to Rs. 655 crore, with margins improving despite higher marketing investments for new brand launches and campaigns.

During the quarter, ABFRL’s new and emerging businesses continued to scale strongly, with the ethnic wear portfolio, luxury retail and digital-first brands delivering robust growth. The ethnic business grew 20 percent year-on-year, supported by strong demand and network expansion, while the designer-led brands portfolio recorded growth of over 30 percent. Premium ethnic brands also improved profitability, driven by operational efficiencies and improved store performance.

Within the ethnic segment, Tasva posted 26 percent growth, aided by strong wedding-led demand and sharper assortments, while Jaypore recorded 35 percent growth, driven by continued store additions and steady like-to-like performance. The TCNS portfolio also delivered improved margins, supported by initiatives to enhance store throughput and operating efficiency.

The luxury retail segment recorded 27 percent growth, supported by store additions and the launch of India’s first Galeries Lafayette flagship luxury department store, which commenced operations in November 2025 and has reported encouraging early traction. The Collective and mono-brand business also maintained steady growth and improving profitability.

ABFRL’s TMRW portfolio of digital-first brands grew 29 percent year-on-year, driven by technology-enabled scaling, category expansion and strategic brand partnerships. The portfolio continued to expand its omni-channel presence, ending the quarter with over 90 stores across key markets.

In the Masstige and value retail segment, Pantaloons recorded quarterly sales of Rs. 1,276 crore. Performance was impacted by the timing shift of festive and end-of-season sales, though underlying like-to-like growth remained positive after adjusting for these factors. The segment’s EBITDA margin stood at 18.2 percent, reflecting investments in newer formats such as OWND and a marginal dip in Pantaloons’ margins. Pantaloons also continued to focus on premiumization and strengthening its fashion credentials through new initiatives and collaborations.

The OWND format continued to scale rapidly, posting 54 percent year-on-year growth and expanding its retail footprint with new store openings, as the brand builds relevance among younger consumers.

Overall, ABFRL continued to expand its physical presence, adding around 50 stores during the quarter, taking its retail area to over 7.7 million square feet.

Looking ahead, the company remains focused on strengthening its brand portfolio, expanding distribution and enhancing omni-channel capabilities. With sustained growth in ethnic wear, luxury retail and digital-first brands, ABFRL expects these segments to remain key drivers of growth in the coming quarters.