ABFRL's Q4 profit surges on Pantaloons and TMRW
Revenue rose 16% to ₹1,990 crore, but the real story is a 410 bps margin jump to 15.7%, fueled by strong growth in Pantaloons and the digital-first portfolio.
— 6 earlier stories on Aditya Birla Fashion and Retail Ltd. →What's new
- Q4 revenue rose 16% to ₹1,990 crore, led by Pantaloons (19%) and the digital-first TMRW portfolio (45%).
- EBITDA surged 57% to ₹311 crore, with the operating margin expanding 410 bps to 15.7%.
- Ethnic wear margins improved 390 bps; luxury revenues grew 13% with early traction from the new Galeries Lafayette store.
Why this matters
The 410 bps margin leap to 15.7% shows ABFRL is converting revenue momentum into profit. The 45% growth at TMRW also validates the strategy of incubating digital-native brands, a bet that now has scale.
What we're watching
- Whether the TMRW growth rate can hold as the post-festive base effect normalizes.
- The profitability impact of the new Galeries Lafayette store in the luxury segment.
- The pace of store additions, with 180 gross stores added in FY26.
The full read
Aditya Birla Fashion and Retail's Q4 results show a business where growth is turning into profit. Revenue hit ₹1,990 crore, up 16%, but the standout number is the 57% jump in EBITDA to ₹311 crore. That was driven by a 410 bps expansion in operating margins to 15.7%. The growth was broad. Pantaloons grew 19%, the digital-first TMRW portfolio surged 45%, and the ethnic wear segment saw margins improve by 390 bps. Luxury revenues rose 13%, aided by early traction from the new Galeries Lafayette store in Mumbai. The company also added 180 gross stores in FY26, taking its total retail footprint to 7.9 million square feet. For a mid-cap retailer, this is clean execution. The 45% growth at TMRW, in particular, shows the digital incubation strategy is working at scale. The pace is strong.
Questions answered
- What was the primary driver of the EBITDA surge?
- The 57% EBITDA growth was driven by a 410 bps expansion in operating margins, alongside strong revenue growth across key segments like Pantaloons and TMRW. The margin jump to 15.7% indicates improved profitability per rupee of sales.
- How significant is the TMRW portfolio's performance?
- TMRW revenues surged 45% in Q4, making it the fastest-growing major segment. This growth rate indicates the company's investment in digital-native fashion brands is now gaining meaningful scale.
- What does the ethnic wear margin improvement signal?
- The 390 bps improvement in ethnic wear margins points to better pricing power or a more profitable product mix in that category. It was a key contributor to the consolidated margin expansion.
- How is the company's physical retail footprint changing?
- ABFRL added 180 gross stores during the financial year, expanding its total retail space to 7.9 million square feet. This physical expansion continues to feed growth alongside the digital channel.
Aditya Birla Fashion and Retail Ltd.
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All notes on ABFRL →- 25 May 2026 · 5:54 PM IST ABFRL's Q4 profit surges on Pantaloons and TMRW
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