Earnings Outlook
Aditya Birla Fashion net loss to widen Q1, sales seen down
This story was originally published at 21:46 IST on 12 August 2025
Register to read our real-time news.Informist, Tuesday, Aug. 12, 2025
By Arya S. Biju
MUMBAI – Weaker sales and low margin from Aditya Birla Fashion and Retail Ltd.'s Pantaloons business and a higher base in the year-ago quarter, which included sales from its currently demerged business under the Madura Fashion & Lifestyle division, are expected to widen the company's losses in the June quarter. The company is expected to continue its loss-making journey, marking the 10th consecutive quarter of net loss.
The company’s consolidated net loss for the June quarter is expected to widen to INR 1.69 billion from a loss of INR 1.61 billion in the year-ago quarter and a loss of INR 168.7 million in the trailing quarter, average of estimates from five brokerages showed. Anand Rathi Share and Stock Brokers Ltd. had the highest estimate for the company's net loss at INR 2.71 billion and Kotak Institutional Equities had the lowest estimate of INR 239 million loss. All five brokerages expect the company to make a loss in the reporting quarter.
Its consolidated revenue for the reporting quarter is expected to be INR 18.29 billion, according to average of estimates. This would mean a near 47% on-year fall in net sales but an over 6% rise on a sequential basis. However, in the year-ago quarter, the company’s revenue included sales from its demerged business under the Madura Fashion & Lifestyle division, which contributed over 52% of the company’s total sales.
In March, the Mumbai bench of the National Company Law Tribunal sanctioned the demerger of the company's business under the Madura Fashion & Lifestyle division into Aditya Birla Lifestyle Brands Ltd., a wholly owned subsidiary of Aditya Birla Fashion.
Estimates for the company’s net sales range from INR 17.53 billion by Motilal Oswal Financial Services Ltd. to INR 20.64 billion estimated by the Kotak Institutional Equities.
The fashion retailer’s Pantaloons division is expected to post a weak sales growth in the reporting quarter, driven by slow consumption sentiment and early festive season that came in the trailing quarter, brokerage Nuvama Wealth Management said in an earnings preview note. However, it expects the company's ethnic business to do well in the quarter given that there were no weddings in the base quarter, the brokerage said. "The digital business under TMRW and others is expected to maintain the sequential momentum in growth," Nuvama said.
The company’s consolidated earnings before interest, taxes, depreciation, and amortisation for the quarter are expected to be INR 912 million-INR 3.26 billion, estimates from three brokerages showed. The company reported a consolidated EBITDA of INR 4.06 billion during the year ago quarter and INR 3.30 billion in the March quarter.
Nuvama expects the company's EBITDA margin for the reporting quarter to decline to 10.9% from 11.8% in the year-ago quarter. Motilal Oswal expects the company's EBITDA margin to decline sharply on quarter due to lower margins in its Pantaloons division.
The company will announce its June quarter earnings Wednesday. On Tuesday, shares of the company closed 0.8% lower at INR 74.02 on the National Stock Exchange. The stock has fallen over 16% since it announced its March quarter earnings.
Of the eight research reports available on the company with Informist, three have a 'buy' or equivalent rating on the stock with an average target price of INR 180 per share, three have 'hold' or equivalent rating and two have a 'sell' rating on the stock.
Following are the Apr-Jun earnings estimates for Aditya Birla Fashion and Retail Ltd. in INR million, based on reports from five broking firms in descending order of net loss:
| Brokerages | Net Sales | Net Loss | EBITDA |
| Kotak Institutional Equities | 20,638 | 239 | 3,261 |
| Sharekhan Ltd | 17,880 | 1,430 | -- |
| Motilal Oswal Financial Services Ltd | 17,533 | 1,536 | 912 |
| Nuvama Wealth Management Ltd | 17,614 | 2,555 | 989 |
| Anand Rathi Share and Stock Brokers Ltd | 17,778 | 2,713 | -- |
| Average | 18,289 | 1,695 | -- |
End
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
