ABFRL Q4 results: Net loss contracts to ₹161 crore, margin expands

Aditya Birla Fashion and Retail Ltd (ABFRL) on Friday, May 24, said that its consolidated net loss shrank to ₹160.92 crore in the fourth quarter of FY25, compared to ₹287.38 crore in the year-ago period.

The fashion retail company’s revenue from operations stood at ₹1,719.48 crore in the quarter under review, jumping 9.17% year-on-year (YoY) from ₹1,575.12 crore in Q4FY24.

The company’s earnings before interest, tax and depreciation (EBITDA) grew almost sixfold to ₹205 crore, as against ₹35 crore in the March quarter of FY24. It was propelled by sharp margin expansion in its Pantaloons and ethnic segments, it said.

Further, its EBITDA margin expanded to 12% in Q4FY25, compared to 2.2% in the corresponding period last year.

In March FY25, ABFRL’s Pantaloons segment reported sales worth ₹885 crore. Further, its EBITDA margin stood at 15.1%, growing 470 basis points, driven by lower markdowns and cost measures.

ABFRL’s ethnic segment sales rose 19% YoY, driven by 46% growth in designer-led brand portfolios, whose EBITDA stood at over 20%.

It's TMRW business grew organically by 27% YoY, driven by product portfolio expansion, launch of new categories and brand-building initiatives, ABFRL said.

ABFRL’s consolidated gross cash stood at over ₹2,350 crore in the fourth quarter of FY25, following a fundraiser.

“With a leading presence across multiple high-growth platforms, the demerged ABFRL is well placed to emerge as a strong, diversified player in the sector. With over ₹2,350 crore of gross cash at the consolidated level following the recent capital raise, the Company is all set to pursue aggressive growth to triple in scale and double in profitability over the next 5 years,” the company said.

Earlier this year, ABFRL demerged its Madura Fashion and Lifestyle business into a newly incorporated company, Aditya Birla Lifestyle Brands Ltd (ABLBL). The latter is set to be listed on the NSE and BSE by the end of June 2025.

On Friday, the stock of ABFRL closed in the red at ₹88.55, down 1.45% on the National Stock Exchange (NSE). However, the results were announced after the market closed.