Aditya Birla Fashion & Retail (ABFRL) reported a 9.17% rise in revenue for the quarter ending March 2025, hitting Rs 1719.48 crore. This growth marks a steady climb compared to the same quarter last year. But beneath the numbers, the company is still grappling with losses.
What’s the real story behind the numbers?
The rise in revenue shows that ABFRL is finding some footing in a tough retail market. Sales in the Ethnic and Others segment jumped nearly 19%, while Pantaloons sales slipped slightly by 1.17%. Interestingly, the Pantaloons segment still made up over half of the total sales.
But here’s the catch: Profit before interest and taxes (PBIT) tells a tougher tale. ABFRL posted a loss of Rs -105.95 crore, worsening from the previous year’s Rs -74.20 crore.
Both key segments are bleeding red, but margins have improved — Pantaloons’ margin loss shrank from -8.35% to -4.40%, and Ethnic and Others from -18.38% to -7.91%. So, while still in the red, they’re at least losing less money.
Why should you care?
For shoppers and investors, it means ABFRL is trying hard to turn things around. They’ve cut costs where it counts — employee costs dropped from 17.32% to 14.01% of sales, and other expenses also fell sharply. They’re also handling inventory better, with stocks down from Rs 4505 crore to Rs 2454 crore, and cash reserves rising. That’s like cleaning out your closet and finding a little extra cash hidden in the jacket pocket.
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The silver lining in the chaos
Operating profit shot up by a whopping 487% to Rs 204.89 crore. That’s a serious jump that shows ABFRL’s core business operations are stabilizing.
Plus, the company slashed its loan funds from Rs 9451 crore to Rs 5016 crore — a huge reduction in debt. In retail, cash is king, and ABFRL is stacking up some royal reserves with Rs 773 crore in cash and Rs 1749 crore in investments.
On the flip side, losses before tax fell 58.5%, and while the company is still not profitable, it’s bleeding less. The net loss for owners narrowed by 38.45%. Small steps, but they count in a cutthroat retail market.
What’s next for ABFRL?
The company’s strategy to focus on its ethnic brands and designer-led portfolios seems to be paying off. Ethnic wear grew 19%, and designer brands soared 46% with healthy profit margins. This shows ABFRL is betting on premium and traditional styles to capture more value.
Also, after a fresh fund raise, ABFRL closed the quarter with Rs 2350 crore in gross cash — a solid buffer to weather any storms ahead.
This quarter’s numbers are a mixed bag — revenue is growing, losses shrinking, but profitability remains a work in progress. For the everyday shopper, it means more options and better focus on quality ethnic wear. For investors, patience is the name of the game as ABFRL carefully trims costs and sharpens its focus.
Aditya Birla Fashion & Retail is like a seasoned marathon runner who has stumbled but is now picking up pace. The road to profit is long but the direction looks promising.
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