Fashion house in the red as ABFRL posts Rs 233.7 crore quarterly loss

MUMBAI: Loss is the new black and ABFRL is wearing it this quarter. Aditya Birla Fashion & Retail Ltd (ABFRL) has stitched together a tough start to FY26, posting a consolidated net loss of Rs 233.73 crore for the quarter ended 30 June 2025 deeper than the Rs 144.18 crore loss in the March quarter and the Rs 237.86 crore red ink from the same period last year.

Revenue from continuing operations inched up 9.4 per cent year-on-year to Rs 1,831.46 crore, with the Pantaloons arm contributing Rs 1,094.13 crore and the Ethnic & Others segment adding Rs 754.57 crore. But rising costs from Rs 742.49 crore worth of stock-in-trade purchases last quarter to Rs 449.90 crore this time and finance charges of Rs 113.36 crore kept the bottom line under pressure.

The quarter also included discontinued operations from the recently demerged Madura Fashion & Lifestyle unit, which brought in Rs 1,877.50 crore in revenue and Rs 140.61 crore profit after tax. Even with this boost, the overall loss for continuing and discontinued operations stood at Rs 212.81 crore.

Operating margins from continuing business slipped into the negative at -0.26 per cent compared to 2.84 per cent in Q1 FY25, while net profit margin was -4.30 per cent. Total expenses surged to Rs 2,148.75 crore, with depreciation and amortisation costs rising to Rs 303.14 crore and rent expense hitting Rs 55.74 crore.

On the balance sheet, ABFRL’s total assets stood at Rs 16,696.52 crore, with segment liabilities at Rs 9,628.52 crore. Net worth came in at Rs 8,239.51 crore. The company’s debt service coverage ratio remained negative at -3.52 times, signalling ongoing financial strain.

Earnings per share from continuing operations came in at a loss of Rs 1.74, versus a Rs 0.49 loss a year ago. The Ethnic & Others segment, despite revenue growth, recorded a Rs 178.82 crore loss for the quarter, while Pantaloons barely broke even with Rs 3.67 crore in profit.

While ABFRL continues to face cost headwinds and margin pressure, it is banking on its mass-market and ethnic portfolios to ride out the turbulence. For now, though, this quarter’s fashion statement is all about survival chic.