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Informist, Wednesday, Aug. 13, 2025

 

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--Aditya Birla Fashion Apr-Jun consol net loss INR 2.12 bln
--Analysts saw Aditya Birla Fashion Apr-Jun consol net loss INR 1.69 bln
--Aditya Birla Fashion Apr-Jun consol loss INR 2.12 bln vs INR 1.61 bln loss
--Aditya Birla Fashion Apr-Jun consol revenue INR 18.31 bln vs INR 16.74 bln
--Aditya Birla Fashion Q1 material consumed cost INR 2.1 bln vs INR 833.4 mln
--Aditya Birla Fashion Q1 Pantaloons revenue INR 10.94 bln vs INR 11.01 bln

--Aditya Birla Fashion Q1 Ethnic revenue INR 4.4 bln vs INR 3.5 bln

--Aditya Birla Fashion Q1 consol EBIT loss INR 1.46 bln vs INR 1.51 bln loss

--Aditya Birla Fashion Apr-Jun consol EBITDA margin 9.3% vs 7.3% year ago

--Aditya Birla Fashion Q1 consol EBITDA INR 1.69 bln vs INR 1.23 bln yr ago

--ServiceNow Ventures to invest INR 4.37 bln in Aditya Birla Fashion arm

 

By Rajesh Gajra

 

NEW DELHI – Aditya Birla Fashion and Retail Ltd. reported a weaker-than-expected net profit for the June quarter on the back of weak revenue growth, a higher rise in key operating costs, and a sharp increase in depreciation and amortisation costs. The consolidated net loss of Aditya Birla Fashion and Retail widened to INR 2.12 billion in the June quarter from INR 1.61 billion a year ago quarter and INR 169 million in the previous quarter.

 

The net loss for the quarter was worse than the Street estimate of INR 1.69 billion. The consolidated revenue of the company from continuing operations rose 9.4% on year and 6.5% on quarter to INR 18.31 billion, just about meeting the analysts' estimate of INR 18.29 billion.

 

In March, the company had secured regulatory approval to demerge its Madura Fashion & Lifestyle division and the June quarter performance of this business is not reflected in the continuing operations performance. The company said in the earnings investor presentation that overall demand in the market was sluggish barring a few pockets of growth.

 

The revenue growth of the company in the June quarter was restricted as the Pantaloons segment recorded a 1% on-year decline in revenue at INR 10.94 billion and helped by a 25% rise in ethnic business segment revenue at INR 4.36 billion. The TMRW brand segment, a digital direct-to-consumer business, saw revenue jump 38% on year to INR 1.97 billion. The company said in the investor presentation that the Pantaloons sales growth was impacted due to store closures over the last one year and on account of the Eid festival in 2025 falling in March compared to April in 2024.

 

Aditya Birla Fashion recorded a consolidated earnings before interest and tax loss of INR 1.46 billion in the June quarter. In the year-ago quarter, the company had reported an EBIT loss of INR 1.51 billion. In the June quarter, key operating costs saw sharp increases. The cost of materials consumed jumped 2.5 times on year to INR 2.10 billion and employee benefits expenses rose 20% on year to INR 3.03 billion. Other expenses registered an 18% on-year rise to INR 5.80 billion.

 

On the other hand, purchase of stock-in-trade, which was the second-largest cost item after other expenses, recorded a low increase of 1.1% at INR 4.45 billion. The company's operating performance also benefitted from a fall in expense item pertaining to change in inventories to INR 1.22 billion in the June quarter from INR 2.55 billion in the year-ago quarter.

 

Among non-operating costs, depreciation and amortisation expenses rose 15% on year to INR 3.16 billion, while finance costs fell 14% on year to INR 1.13 billion. The company's consolidated EBITDA, which excludes the impact of depreciation and amortisation, rose 38% on year to INR 1.69 billion in the June quarter, while the EBITDA margin expanded to 9.3% from 7.3% a year ago.

 

The company announced its June quarter earnings after market hours Wednesday. In a separate press release, the company announced the execution of a shareholders agreement and share subscription agreement with ServiceNow Ventures Holdings Inc. for investment of around INR 4.37 billion by way of convertible preference shares.

 

On Wednesday, shares of Aditya Birla Fashion closed at INR 74.68, up 0.9%, on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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