Aditya Birla Fashion reports strong Q3FY25 performance with 13% YoY EBITDA growth

Aditya Birla Fashion and Retail Limited (ABFRL) has reported a 13% year-on-year (YoY) growth in EBITDA, reaching ₹683 crore for the third quarter of FY25. The company’s revenue rose 3% YoY to ₹4,305 crore, reflecting steady momentum in an otherwise challenging retail landscape. Meanwhile, net losses narrowed significantly, with profit after tax (PAT) reducing from ₹108 crore in Q3FY24 to ₹42 crore in Q3FY25, demonstrating ABFRL’s ongoing profitability improvement.

With a year-to-date (YTD) revenue of ₹11,376 crore, reflecting 7% growth compared to last year, ABFRL remains on a solid growth trajectory. The company’s strategic investments in premium, ethnic, and digital-first fashion brands have bolstered sales, even as macroeconomic conditions remain volatile.

What is driving Aditya Birla Fashion’s revenue growth in Q3FY25?

ABFRL’s multi-segment retail approach has been a key driver of its retail revenue growth. The ethnic wear portfolio, which includes brands such as Sabyasachi, House of Masaba, Shantnu & Nikhil, and Tarun Tahiliani, delivered 7% YoY growth, supported by strong festive and wedding season demand. Excluding TCNS Clothing, the ethnic category expanded by 39% YoY, highlighting the company’s strength in India‘s premium and traditional fashion markets.

The luxury segment also contributed significantly, with revenue from The Collective and Galeries Lafayette growing by 13% YoY. Meanwhile, ABFRL’s digital-first fashion platform, TMRW, recorded a 26% YoY increase, underlining the importance of e-commerce and omnichannel retail expansion in driving future revenue.

How is the Pantaloons segment performing within ABFRL’s portfolio?

The Pantaloons brand, which operates in the masstige and value retail category, continues to play a significant role in ABFRL’s fashion market trends. The segment posted quarterly revenue of ₹1,305 crore, with 6% like-to-like (LTL) growth, driven by festive demand and an expanded product range.

One of the standout achievements of the quarter was Pantaloons’ EBITDA margin improvement, which expanded by 170 basis points (bps) to reach 19.3%. This marks the fifth consecutive quarter of margin expansion, reflecting strong cost controls and higher gross margins. The company’s focus on offering fashion-forward, affordable apparel has made Pantaloons a leading player in the mid-market fashion space.

What role do lifestyle brands play in ABFRL’s profitability?

ABFRL’s lifestyle brands, including Louis Philippe, Van Heusen, Allen Solly, and Peter England, remained a cornerstone of the company’s retail success, contributing ₹1,817 crore in Q3 revenue. The segment’s EBITDA margin improved to 19.6%, reflecting a 40 bps increase compared to the previous year.

One of the primary growth drivers has been increased casualization and premiumization within the brand portfolio. With more consumers shifting towards high-quality, fashion-forward workwear and occasion-driven attire, ABFRL’s lifestyle brands have successfully capitalized on these evolving fashion market trends. Retail LTL growth stood at 12%, indicating robust consumer demand across categories.

How is ABFRL leveraging digital-first brands and e-commerce to drive sales?

The company’s digital-first business, TMRW, is rapidly emerging as a growth engine, registering a 26% YoY revenue increase in Q3FY25. TMRW has focused on expanding its portfolio of direct-to-consumer (D2C) brands, tapping into India’s booming e-commerce market.

A key highlight this quarter was the expansion of offline retail touchpoints for TMRW brands, with five new store openings, including three under The Indian Garage Co. (TIGC) and two Bewakoof stores. The company’s strategy of integrating digital-first brands with physical retail is aimed at maximizing market penetration and enhancing the consumer shopping experience.

What are ABFRL’s latest financial strategies to strengthen its market position?

ABFRL recently raised ₹490 million through a Qualified Institutional Placement (QIP) and preferential issuance, which was approved by shareholders on February 13, 2025. This capital raise is intended to support debt repayment and fund strategic expansion initiatives, including:

• Eliminating outstanding debt, making the company debt-free
• Accelerating growth in ethnic wear, luxury retail, and digital-first fashion

Investor response to the capital raise reflects confidence in ABFRL’s leadership position in India’s fashion and apparel sector. The company is now well-positioned to pursue an aggressive growth strategy, leveraging its strong brand portfolio and extensive retail network of over 4,492 stores across India.

What does the future hold for Aditya Birla Fashion?

Looking ahead, ABFRL is focused on scaling its high-growth businesses while maintaining its profitability momentum. With the company’s diversified fashion portfolio, strong distribution network, and strategic capital allocation, it aims to capture a larger share of India’s expanding fashion market.

The continued success of luxury retail, ethnic wear, and digital-first brands suggests that ABFRL is well-positioned to navigate evolving consumer preferences and market conditions. The company’s transformation efforts, including portfolio diversification, premiumization, and enhanced retail experiences, will be instrumental in driving long-term value creation.

ABFRL remains a leader in India’s fashion market

Aditya Birla Fashion’s Q3FY25 financial performance reinforces its standing as a market leader in India’s retail sector. With a 3% YoY revenue increase, 13% EBITDA growth, and shrinking PAT losses, the company is demonstrating resilience and adaptability in a competitive environment.

By strategically investing in high-potential segments such as ethnic wear, luxury retail, and digital-first brands, ABFRL is positioning itself for sustained long-term growth. As it continues to expand its retail footprint and strengthen its profitability, the company is expected to play a key role in shaping the future of India’s fashion industry.