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Informist, Monday, Nov. 3, 2025

 

By Shakshi Jain

 

NEW DELHI – Aditya Birla Fashion and Retail Ltd.'s net loss for the September quarter is expected to widen year-on-year as well as sequentially due to higher advertisement spending in the Pantaloons business and rebranding expenses for the newly launched youth-oriented fashion brand OWND!

 

While launching the brand last month, Aditya Birla Fashion had said it plans to convert the existing StyleUp stores into OWND! and expand its footprint to 100 stores by the end of the current financial year.

 

Aditya Birla Fashion's top line for the reporting quarter is expected to fall sharply on a higher base in the year-ago quarter, which included sales from its currently demerged business under the Madura Fashion & Lifestyle division.

 

The company's consolidated net loss for the September quarter is expected to widen to INR 2.29 billion from a net loss of INR 1.86 billion in the year-ago quarter and a loss of INR 2.12 billion in the trailing quarter, according to the average of estimates from six brokerages. The highest estimate for the September quarter net loss is INR 2.89 billion by Nuvama Wealth Management Ltd. and the lowest is INR 2.03 billion by Motilal Oswal Financial Services Ltd.

 

Aditya Birla Fashion's consolidated revenue for the reporting quarter is expected to fall nearly 46% on year to INR 19.83 billion. However, this would mean a sequential rise of over 8%. The highest estimate for revenue is INR 20.32 billion by Nuvama and the lowest is INR 19.62 billion by Motilal Oswal.

 

In the year-ago September quarter, the company's consolidated top line included sales from the now-demerged business under Madura Fashion & Lifestyle division, which contributed 54% of the overall revenue from operations for that quarter. This demerged business is now called Aditya Birla Lifestyle Brands Ltd. and it is no longer a subsidiary of Aditya Birla Fashion since the demerger became effective in May.

 

In the year-ago quarter, the overall net loss of the company was reined in by a profit of INR 333.4 million in the Madura Fashion & Lifestyle segment.

 

LIKE-TO-LIKE COMPARISON

On a sequential basis, brokerages estimate Aditya Birla Fashion will report healthy growth in its September quarter revenue, driven by growth in both its businesses. The Pantaloons segment is expected to report a single-digit rise in revenue for the reporting quarter while the Ethnic business is likely to report high double-digit revenue growth for the September quarter on the back of higher volumes due to an early start to the festive season this year. "The digital business under TMRW and others is expected to maintain the sequential momentum in growth on the back of early promotional sales in the online space due to early festive calendar," Nuvama said in a report.

 

Aditya Birla Fashion is expected to report INR 1.03 billion in earnings before interest, tax, depreciation, and amortisation for the September quarter, according to the average of estimates from four brokerages. In the year-ago quarter, the company had reported INR 4.1 billion in EBITDA. In the June quarter, the company's EBITDA was INR 1.69 billion.

 

Brokerages estimate a marginal expansion in operating margin of the company for the September quarter on account of better profitability in the Pantaloons segment due to closure of loss-making stores and higher operating leverage in the Ethnic and TMRW businesses. They, however, also warned that higher advertising and rebranding expenses for the quarter would more than offset the expansion in margins, resulting in a net contraction in the company's operating margin for the reporting quarter.

 

Aditya Birla Fashion had reported a consolidated net loss of INR 2.12 billion for the June quarter on revenues of INR 18.31 billion. For the year-ago quarter, the company had posted a consolidated net loss of INR 1.86 billion on revenues of INR 36.44 billion. Aditya Birla Fashion will announce its September quarter results on Tuesday. The company's net worth, exclusive of the now-demerged arm, as of FY25 was INR 68.13 billion.

 

On Monday, shares of Aditya Birla Fashion ended at INR 85.38 on the National Stock Exchange, up 4.6%. The stock is up over 14% since the company reported its results for the June quarter on Aug. 13. 

 

Among the eight research recommendations on the stock available with Informist, four have a "buy" rating on Aditya Birla Fashion while three have a "hold" rating and one has a "sell" recommendation. The average target price of the "buy" recommendations is INR 159 and that of the "hold" calls is INR 160.

 

Following are the Jul-Sept earnings estimates for Aditya Birla Fashion from six brokerages in descending order of the estimate of net profit in INR million:

 

Broking Firm	Net Sales	Net Profit	EBITDA
Motilal Oswal Financial Services Ltd	19,619	(-)2,034	1,095
Anand Rathi Share and Stock Brokers Ltd	19,667	(-)2,047
Emkay Global Financial Services Ltd	20,031	(-)2,053	940
Sharekhan Ltd	19,670	(-)2,270
Kotak Securities Ltd	19,675	(-)2,450	1,259
Nuvama Wealth Management Ltd	20,318	(-)2,887	824
Average	19,830	(-)2,290.17	1,029.50

 

End

 

Edited by Ashish Shirke

 

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