This article first appeared on GuruFocus .
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Revenue:INR1,990 crores, 16% YoY growth.
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Pantaloons Revenue:INR1,048 crores, 19% YoY growth.
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TMRW Revenue Growth:45% YoY.
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EBITDA Growth:29% YoY, margins at 11.5%.
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Ethnic Business Revenue:INR2,227 crores, 14% YoY growth.
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Net Loss:INR164 crores, compared to INR171 crores last year.
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Annual Revenue:INR8,177 crores, 11% YoY growth.
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Annual EBITDA:INR903 crores, 23% YoY growth, margin at 11%.
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Gross Cash:INR1,549 crores at consolidated level.
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Gross Debt:INR1,695 crores at consolidated level.
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Store Network:1,273 stores, 70 new stores added in Q4.
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Pantaloons EBITDA Margin:15.5%, 40 basis points expansion YoY.
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Ethnic Business EBITDA Margin:10.8%, 560 basis points expansion YoY.
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TMRW Cash Losses:Reduced to INR33 crores from INR75 crores last year.
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Warning! GuruFocus has detected 3 Warning Signs with BOM:535755.
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Is BOM:535755 fairly valued? Test your thesis with our free DCF calculator.
Release Date: May 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Aditya Birla Fashion and Retail Ltd ( BOM:535755 ) reported a strong performance with a 16% YoY revenue growth, reaching INR1,990 crores.
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Pantaloons segment delivered a 19% YoY growth, supported by strategic shifts in merchandising and customer experience.
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The company added around 70 new stores in the quarter, contributing to future revenue growth and profitability.
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EBITDA grew by 29% YoY, with margins at 11.5%, indicating improved operational efficiency.
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The ethnic business saw significant profitability improvement, with EBITDA margin expanding by 560 basis points to 10.8% for FY 2026.
Negative Points
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The company reported a loss of INR164 crores for the quarter, including a one-time exceptional charge related to the wage code.
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Geopolitical uncertainties and inflationary pressures pose potential risks to future demand and profitability.
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Despite strong revenue growth, the company remains in a net debt position, raising concerns about long-term financial sustainability.
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The online business, although growing, still represents a small portion of overall revenue, limiting its impact on total performance.
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OWND! segment continues to incur losses, impacting overall segmental profitability.
Q & A Highlights
Q: What drove the 17% revenue growth in the Pantaloons format? A: Sangeeta Tanwani, Whole-Time Director, explained that the growth was driven by strategic shifts in merchandising, particularly in women's western, menswear, and non-apparel categories, which saw over 20% growth. The company also moved its End of Season Sale (EOSS) to January, improved store experiences, and saw strong online business growth.
Q: What is the current online share of revenue for Pantaloons, and how is it impacting customer metrics? A: Sangeeta Tanwani stated that online revenue is currently 3% to 4% of the business. The company has focused on increasing basket sizes, indicating customer satisfaction with the in-store experience and merchandise.
Q: How is inflation impacting Pantaloons and OWND!, and what is the strategy regarding price hikes? A: Ashish Dikshit, Managing Director, noted a 3% to 4% inflationary pressure on raw materials, which may lead to a 5% to 8% price increase depending on the category. The company is still evaluating the extent of price hikes.
Q: How did geopolitical uncertainties affect demand, and what is the outlook for FY 2027? A: Ashish Dikshit mentioned that while March saw some disruption, demand has been nearly normal in April. The company remains cautious about potential inflationary pressures affecting demand in the second half of the year.
Q: What is the company's cash flow situation, and how does it plan to manage liquidity? A: Jagdish Bajaj, CFO, explained that the company plans to utilize INR1,000 crores in FY 2026, INR600 crores in FY 2027, and INR500 crores in FY 2028, aiming to be free cash flow positive by FY 2029. The company has sufficient cash reserves to support its growth plans.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
