Aditya Birla Fashion and Retail Limited — PPTs, 23-05-2025: Investor Presentation

1. Financial Highlights:

Aditya Birla Lifestyle Brands Limited (ABLBL) posted Q4 revenue of ₹1,942 Cr, up 4% YoY, with EBITDA rising 18% and margin expanding ~200 bps to 17.6%. FY25 revenue edged 1% higher to ₹7,619 Cr, with EBITDA margin improving 100 bps to 16.7%. Aditya Birla Fashion & Retail Limited (ABFRL) recorded 9% Q4 revenue growth to ₹1,719 Cr; comparable EBITDA doubled, margin rose to 17.2%, but PAT stayed negative at -₹161 Cr due to interest costs. FY25 revenue grew 14% to ₹3,551 Cr with a margin gain over 200 bps. Pantaloons saw slight revenue decline but margin improved notably (~400 bps in ethnic portfolio). Luxury and digital-first brands achieved double-digit growth. Combined FY25 revenue stood at ₹11,170 Cr. ABLBL’s net worth is ₹1,385 Cr with net debt ₹1,407 Cr; ABFRL’s capital employed (excluding intangibles) is ₹816 Cr.

2. Strategic Initiatives & Growth Drivers:

Post-demerger, both firms pursue aggressive scale-up and margin gains over five years. ABLBL targets doubling scale and becoming debt free within 2-3 years through retail expansion, brand marketing, and e-commerce tie-ups. ABFRL aims to triple sales by bolstering ethnic wear, luxury brands, and its digital-first TMRW portfolio, alongside expanded Pantaloons and Style Up stores. Focus on network optimization and premiumization underpins margin improvement plans.

3. Business Developments:

Demerger led to two focused businesses. ABLBL is optimizing store portfolio by closing underperforming outlets and ramping up new store openings and brand launches such as Van Heusen’s ‘Born of Art’. ABFRL expanded ethnic and luxury retail footprints, introduced new retail formats like OTT by Tarun Tahiliani, and scaled TMRW digital brand to 16 stores. Pantaloons continued consolidation with 50+ store closures but added new strategic locations.

4. Market Position & Competitive Advantage:

ABLBL holds leadership in India’s lifestyle segment with diverse product categories and a strong retail plus e-commerce presence. ABFRL is India’s largest ethnic wear portfolio owner with fast-growing luxury and digital-first segments. Both benefit from robust brand equity, channel diversification, and evolving consumer engagement, positioning them strongly for market leadership within their domains.

5. Investor Implications:

Strategic separation sharpens focus and capital efficiency, unlocking value potential. Retail like-to-like growth, margin expansion, and operating leverage support positive growth prospects—especially in ethnic, luxury, and digital-first categories. Investors should watch for ABLBL’s store expansion execution, margin growth, and debt reduction progress. For ABFRL, interest cost impact on profitability is a risk, though recent fund raises and cash reserves support deleveraging and margin improvement. Overall, both entities are positioned for sustainable growth and improving profitability.