ABFRL
Large CapAditya Birla Fashion and Retail Limited
Consumer
Aditya Birla Fashion and Retail Limited (ABFRL) is a diversified Indian fashion retailer operating across Masstige & Value, Ethnic, Luxury, and Digital-First brands. The company focuses on expanding its retail footprint and enhancing its omni-channel presence, catering to evolving consumer demands across various segments.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 22/100margin compression · Rev +16% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,990 Cr | +15.8% | -16.2% |
| EBITDA | ₹188 Cr | -5.5% | -37.7% |
| Operating margin | 9.0% | -300 bps | -400 bps |
| PAT | ₹-164 Cr | NDF | NDF |
| PAT margin | -8.2% | -684 bps | -247 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
ABFRL reports strong Q4FY26 with 16% revenue growth and 29% normalized EBITDA growth YoY, driven by Pantaloons' 19% growth and improved operating margins across segments. FY26 saw 11% revenue and 23% normalized EBITDA growth, with significant store expansion.
While Q4FY26 shows robust top-line and normalized EBITDA growth, the full-year Pantaloons revenue growth of 4% is modest. Ethnic business profitability improved significantly, but TMRW still incurs cash losses despite strong revenue growth. Sustained margin expansion and profitable scaling of newer ventures are key to thesis validation.
Pantaloons Category Mix (Q4 FY26)
Latest issuer-disclosed distribution across 5 reported categories.
Pantaloons Strategic Shift
Strategic shift in consumer proposition driving business momentum for Pantaloons, focusing on superior product and elevated store experience.
Ethnic Portfolio Expansion
Scaling platform spanning well-known premium and designer-led brands, with 80+ new stores added this fiscal and 14% overall growth in FY26.
TMRW Digital-First Brands
Consistent high growth momentum, with portfolio growing 45% YoY in Q4FY26, led by new category extensions and marketing campaigns.
Luxury Retail Traction
Luxury grew 13% YoY in Q4FY26 and 15% YoY in FY26, with Galeries Lafayette seeing strong early traction and The Collective performing well.
Overall Store Additions
Added 70 new stores across businesses in Q4FY26 and 180+ new stores in FY26, resulting in ~120k sq.ft. net addition in Q4 and ~600k sq.ft. net added in FY26.
Pantaloons & OWND Expansion
16 new stores added across Pantaloons (4) and OWND (12) in Q4FY26. OWND is now available at 79 stores, with 34 new stores added in FY26.
Ethnic Brands Network Growth
Tasva added 30+ new stores in FY26 (now 94 stores). Jaypore added 15+ new stores in FY26 (now 44 stores). W opened 23 new stores in FY26, with 17 in H2.
Shift to Organized Retail
Sustained positive momentum in un-organized to organized shift, particularly driving growth in Value Retail.
Omni-channel Adoption
Omni-channel is central to fashion retail, with D2C brands deepening offline presence and hyperlocal fulfilment gaining focus.
Seasonal Demand Impact
Low wedding dates in Q4FY26 compared to last year, with no wedding dates in January and clustered dates in Feb–Mar.
Geopolitical Factors
Geopolitical factors are emerging, posing a risk to input costs and consumer sentiment.
Input Costs & Consumer Sentiment
Geopolitical factors are emerging, which management identifies as a risk to input costs and consumer sentiment.
Wage Code Impact
The wage code impact resulted in an Rs. 11 Cr hit to PBT in Q4FY26 and Rs. 40 Cr in FY26.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The fashion retail business often experiences seasonal demand fluctuations. Comparing performance year-over-year provides a more accurate view of underlying business trends and growth, as presented in the document for both Q4 and FY26.
Consolidated Revenue Growth
Q4FY26 revenue grew 16% YoY to Rs. 1990 Cr. FY26 revenue grew 11% YoY to Rs. 8177 Cr.
Normalized EBITDA Growth
Q4FY26 normalized EBITDA grew 29% YoY to Rs. 229 Cr. FY26 normalized EBITDA grew 23% YoY to Rs. 903 Cr.
Normalized EBITDA Margin
Q4FY26 normalized EBITDA margin expanded 120 bps YoY to 11.5%. FY26 normalized EBITDA margin expanded ~100 bps YoY to 11.0%.
Pantaloons LTL Growth
Pantaloons format retail LTL was 14% in Q4FY26 and 2% in FY26.
Premiumization Focus
Pantaloons is driving a premium brand experience through superior product and elevated store experience.
Profitable Ethnic Growth
Ethnic portfolio continued on its profitable growth trajectory, with EBITDA margin up 560 bps in FY26.
TMRW Unit Economics
Strengthening unit economics for TMRW via premiumization and disciplined execution, with cash losses reduced YoY by >50% in Q4.
Galeries Lafayette Ramp-up
Galeries Lafayette is seeing strong early traction, setting new benchmarks in luxury retail with curated in-store experiences.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Pantaloons LTL Growth | 14% in Q4FY26, 2% in FY26 | Sustained double-digit LTL growth, indicating continued success of strategic shifts and premiumization efforts. |
| Ethnic Business EBITDA Margin | 13.9% in Q4FY26, 10.8% in FY26 | Further margin expansion, especially from TCNS and designer brands, to demonstrate profitable scaling. |
| TMRW Cash Losses | Reduced >50% YoY in Q4FY26 | Continued reduction in cash losses and progress towards profitability, validating the D2C engine's unit economics. |
| Overall E-commerce Growth | >30% YoY in Q4FY26, >20% YoY in FY26 | Maintenance of strong e-commerce growth and increasing share of revenue, indicating effective omni-channel strategy. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -9.5% / mo · near 52W low
Technical chart
ABFRLweekly · 1Y-18.1%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 42.
- SMA20 falling (~10.6% over last month) — short-term momentum negative.
- RSI(14) at 42 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 35% off 52W high · 13% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Cash flow contributes 4/10 to the score.
- Valuation contributes 7/30 to the score.
- Growth contributes 4/25 to the score.
Main drags
- Altman Z is 1.4, in distress territory.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Balance sheet is weaker at 2/15; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 11th percentile of the scored universe and 11th percentile within Consumer. Main check: balance sheet trust is weak at 21/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Altman Z is 1.43.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Consumer: 11th pctile, median 67 · Large: 7th pctile, median 74
140 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸5 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Altman Z is 1.43.
- ▸Debt/equity is 1.06.
- ▸Interest coverage is 1.3x.
- ▸ROCE is low at -3.1%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- —
- P/B
- 1.24
- EV/EBITDA
- 6.72
- Market Cap
- 7232.00Cr
Profitability
- ROE
- -11.70%
- ROCE
- -3.07%
- ROA
- -4.67%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 9.00%
- EPS 5Y
- -2.00%
- Revenue 3Y
- -13.00%
- EPS 3Y
- -6.00%
Balance Sheet
- Debt/Equity
- 1.06
- Interest Coverage
- 1.27×
- Altman Z
- 1.43
- Book Value
- 47.80
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 5/5
- OCF
- 161.00 Cr
- EPS TTM
- -6.36
Shareholding
- Promoter Hold
- 46.61%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 14%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.