ABFRL cuts losses as Pantaloons and TMRW drive 16% revenue jump
Operating profit rose 29% to ₹229 crore, and margins widened 120 basis points. The net loss, however, remains at ₹164 crore.
— 6 earlier stories on Aditya Birla Fashion and Retail Ltd. →What's new
- Consolidated revenue rose 16% YoY to ₹1,990 crore.
- EBITDA grew 29% to ₹229 crore, with the margin expanding to 11.5%.
- Net loss narrowed to ₹164 crore from ₹267 crore a year ago.
Why this matters
The operational recovery is broad. Revenue growth is led by both the core Pantaloons chain and the new-age TMRW brands, while ethnic wear margins jumped 390 basis points. The company is still losing money, but the trajectory is moving in the right direction. The next test is whether this pace of EBITDA growth can eventually outpace the remaining overhead.
What we're watching
- Whether TMRW's 'sharply lower losses' translate to profitability.
- If the 11.5% EBITDA margin holds into FY27.
- The cash flow impact of adding 70 stores in a single quarter.
The full read
Aditya Birla Fashion is growing faster and bleeding less. Q4 revenue of ₹1,990 crore was up 16% year-on-year. EBITDA jumped 29% to ₹229 crore, and the operating margin widened to 11.5% from 10.3%. The numbers are broad-based: Pantaloons grew 19%, the digital-first TMRW brands surged 45%, and ethnic wear margins expanded 390 basis points. The company also added 70 stores, reaching 7.9 million sq ft. The operating improvement is real. But the bottom line tells the other half. ABFRL still lost ₹164 crore in the quarter, down from ₹267 crore a year ago. The progress is real. The catch is real. For a turnaround to stick, EBITDA growth has to eventually flow through to net profit.
Questions answered
- Which segments drove the growth this quarter?
- Revenue growth was led by the Pantaloons format, which grew 19%, and the TMRW digital-first brands, which surged 45%. The ethnic wear portfolio also contributed, with its margins improving by 390 bps.
- How much did the net loss shrink?
- The net loss narrowed to ₹164 crore from ₹267 crore in the same quarter last year. The improvement is driven by higher operating profit, but the company remains firmly in the red.
- Is the company still expanding its physical footprint?
- Yes, ABFRL added 70 new stores in Q4, bringing its total retail footprint to 7.9 million square feet. This is a significant expansion in a single quarter.
- What does the 120 bps margin expansion mean?
- It means the core retail operations are becoming more profitable on a per-rupee-of-sales basis. The margin improved to 11.5% from 10.3% a year ago, driven by a 390 bps improvement in the ethnic wear portfolio.
Aditya Birla Fashion and Retail Ltd.
Latest quarter · Mar 2026
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All notes on ABFRL →- 25 May 2026 · 5:47 PM IST ABFRL cuts losses as Pantaloons and TMRW drive 16% revenue jump
- 21d ago Pantaloons CEO Sangeeta Tanwani steps down, successor advanced to August
- 41d ago Aditya Birla Fashion scales back store openings and delays TCNS targets
- 41d ago Aditya Birla Fashion and Retail files audited FY26 results
- 42d ago ABFRL's Q4 profit surges on Pantaloons and TMRW