ABFRL Q2 FY27 Results: Revenue Up 2%, EBITDA Down 43% Amidst Festive Shift
ABFRL reported Q2 FY27 consolidated revenue of ₹2030 crore, up 2% YoY. EBITDA declined 43% to ₹67 crore due to a festive shift and rising costs. Newer businesses like ethnic wear (up 12%) and luxury (up 11%) showed growth. H1 FY27 revenue grew 6% to ₹4056 crore, while EBITDA fell 18%.
The results show a mixed performance with revenue growth but a significant hit to profitability. The impact is medium as it affects the company's financial health and investor perception, but the underlying growth in certain segments and the positive outlook for the festive season mitigate a high impact.
The revenue saw a marginal increase, but the significant drop in EBITDA and margins indicates pressure on profitability. While newer businesses are growing, the impact of external factors like festive shifts and rising costs on overall performance warrants a neutral sentiment.
Aditya Birla Fashion and Retail Limited (ABFRL) announced its unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. The Board of Directors approved these results on November 5, 2026.
For the second quarter of FY27, ABFRL reported a consolidated revenue of ₹2030 crore, a 2% increase compared to ₹1982 crore in Q2 FY26. However, EBITDA saw a significant decline of 43%, dropping to ₹67 crore from ₹116 crore in the same period last year, resulting in a lower EBITDA margin of 3.3% compared to 5.9%.
The company's performance was impacted by a festive shift, which affected year-on-year growth, particularly in established businesses like Pantaloons and ethnic brands. Newer businesses, however, sustained their growth momentum. The ethnic portfolio grew by 12% YoY (excluding TCNS), and luxury brands saw an 11% increase. TMRW grew by 10% YoY with narrowing losses, and OWND scaled by 58% YoY.
In the Pantaloons segment, revenue remained flat at ₹1140 crore. The ethnic businesses reported a revenue of ₹517 crore, a 2% increase. TMRW's revenue grew by 10% to ₹244 crore, while the 'Others' segment increased by 11% to ₹158 crore.
For the first half of FY27, consolidated revenue stood at ₹4056 crore, a 6% increase from ₹3813 crore in H1 FY26. EBITDA for H1 FY27 was ₹233 crore, an 18% decrease from ₹286 crore in H1 FY26, with the EBITDA margin falling to 5.7% from 7.5%.
The company highlighted that despite the festive shift impacting YoY growth, early signs for the festive season were strong, with encouraging trends observed during Onam and Pujo. Input and logistics costs have risen due to supply constraints and commodity price volatility, while rental and manpower costs face structural pressures.
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