ABFRL Reports 15% YoY EBITDA Growth In Q1FY25
Aditya Birla Fashion and Retail Ltd (ABFRL) has reported a 15% year-on-year (YoY) increase in EBITDA for Q1FY25, reaching Rs 406 crore. This growth comes despite a challenging market environment. The company also saw a 7% YoY rise in consolidated revenue, totaling Rs 3,428 crore.
In its strategic segments, ABFRL demonstrated robust performance. The de-merged segment focused on high-growth areas, recording a 26% YoY revenue increase. The ethnic business expanded significantly, growing to 2.6 times last year’s levels, while TMRW’s portfolio nearly doubled, driven by a 47% organic growth rate.
The company’s emphasis on margin expansion led to an overall EBITDA margin improvement of 80 basis points to 11.8%. The lifestyle brands segment saw a 50 basis point increase in EBITDA margin, and Pantaloons achieved a 43% YoY increase in EBITDA, aided by improved markdown management.
ABFRL expanded its store network to 4,607 locations, covering 11.9 million sq. ft., while also optimizing underperforming stores. The e-commerce segment grew by over 13%, with TMRW contributing to a 30% YoY rise in online sales. Emerging categories, including youth, women’s, kids’ wear and accessories, continued to drive growth.
Despite a increase in net loss to Rs -215 crore from Rs -162 crore YoY, the company’s strategic focus on high-growth segments and efficient margin management positions it for continued growth. The lifestyle brands segment reported revenue of Rs 1,482 crore and an EBITDA margin expansion to 18.8%. Pantaloons saw quarterly sales of Rs 1,101 crore, with a 43% YoY increase in EBITDA and a margin expansion of 470 basis points to 17.6%. The ethnic brands segment grew by 4% YoY, and luxury retail saw an 18% increase in revenue, with a 31% rise in e-commerce sales.
ABFRL’s ongoing investments and strategic expansions, including its digital-first ventures like TMRW, underscore its commitment to long-term value creation. The company remains a leading force in India’s fashion retail sector, with a significant presence and diverse brand portfolio.
