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Informist, Saturday, Aug. 8, 2026

 

By Utthara E. S.

 

MUMBAI – Aditya Birla Fashion and Retail Ltd.'s consolidated net loss for the June quarter is expected to widen due to higher operating expenses, store expansions, and slower recovery in premium ethnic wear segment, according to brokerages tracking the company.

 

The company is expected to report a consolidated net loss of INR 2.5 billion for the June quarter, higher than the net loss of INR 2.1 billion in the year-ago quarter, according to the average of estimates from seven brokerages. The highest estimate for the June quarter net loss is INR 3.6 billion from Anand Rathi Share and Stock Brokers Ltd. and the lowest is INR 1.7 billion from JM Financial Institutional Securities Pvt. Ltd. Higher promotional spending, a delayed monsoon, and higher operational costs are expected to impact the company's profitability, brokerages said.

 

Aditya Birla Fashion's consolidated net sales are expected to rise nearly 12% on year to INR 20.4 billion for the June quarter from INR 18.3 billion in the year-ago quarter, according to the average of estimates. The highest estimate for net sales is INR 20.7 billion from JM Financial and the lowest is INR 20.2 billion from Emkay Global Financial Services Ltd.

 

The company's revenue growth is expected to be led by a 10% on-year rise in the revenue from Pantaloons, a 12.4% rise in the revenue from the ethnic segment, and a sharp rise in revenue from the TMRW brand, Kotak Securities Ltd. said. The performance of the ethnic segment is expected to be limited by fewer wedding dates this summer, Motilal Oswal Financial Services Ltd. said.

 

Aditya Birla Fashion is expected to report earnings before interest, tax, depreciation, and amortisation of INR 1.5 billion in the June quarter, down nearly 51% from INR 3.1 billion in the year-ago quarter, according to the average of six estimates. The highest estimate for the company's EBITDA is INR 2.3 billion from JM Financial and the lowest is INR 1.0 billion from Axis Securities Ltd.

 

The company's EBITDA margin is expected to be between 4.3% and 8.2% for the June quarter from 6.1% in the year-ago quarter, according to the estimates of six brokerages. Four brokerages expect the EBITDA margin to expand on year while the other two expect it to contract. The highest estimate for the EBITDA margin is from Nuvama Wealth Management Ltd. and the lowest is from Anand Rathi. The EBITDA margin is expected to contract mainly due to a loss from the OWND brand and weaker revenue growth, according to Emkay.

 

Aditya Birla Fashion and Retail Ltd. is a part of the Aditya Birla group and owns a portfolio of brands such as Pantaloons, OWND, and The Collective. The company has tie-ups with Ralph Lauren, Hackett London, Ted Baker, and Fred Perry.

 

The retail sector is expected to report healthy results in the June quarter aided by steady demand and moderate revenue growth. The sector's revenue growth for the June quarter is expected to be impacted by lower footfalls because of ‘Adhik Maas', the additional, 13th month in the Hindu calendar. The month, which occurs once in three years, is considered inauspicious and leads to fewer wedding dates in the quarter which in turn affects the retail and fashion sector's revenue growth. Rising inflationary pressure and increased input costs are also expected to affect the sector, Anand Rathi said.

 

The company will detail its June quarter earnings Saturday. Investors will track demand for the company's products in

tier-two and tier-three towns and store expansions, Axis Securities said.

 

Friday, shares of Aditya Birla Fashion ended at INR 63.33 apiece on the National Stock Exchange, marginally up. The shares are down over 2% since the company announced its March quarter earnings on May 25. Of the six research reports on the company available with Informist, three have a "buy" recommendation on the stock with an average target price of INR 80, which is ­­­­­­­over 26% higher than the current market price. Two brokerages have a "hold" recommendation on the stock with an average target price of INR 68 and one brokerage has a "sell" recommendation with a target price of INR 60.

 

Following are the Apr-Jun earnings estimates for Aditya Birla Fashion and Retail Ltd. from seven brokerages in descending order of the estimates of net profit, in INR billion:

 

Broker Names	Net Sales	Net Loss	EBITDA
JM Financial Institutional Securities Pvt. Ltd.	20.7	1.7	2.3
Nuvama Wealth Management Ltd.	20.5	1.9	1.7
Emkay Global Financial Services Ltd.	20.2	2.3	1.3
Motilal Oswal Financial Services Ltd.	20.3	2.5	1.4
Axis Securities Ltd.	20.3	2.6	1.0
Kotak Securities Ltd.	20.3	2.8	1.5
Anand Rathi Share and Stock Brokers Ltd.	20.7	3.6	--
Average	20.4	2.5	1.5

 

End

 

Edited by Pankaj Aher

 

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