Aditya Birla Fashion shares fall 8% after Q1 loss widens; revenue up 11%

Shares of Aditya Birla Fashion and Retail declined over 8% on Monday, August 10, after the company reported its results for the first quarter of this fiscal (Q1FY27).

Aditya Birla Fashion and Retail reported a net loss of ₹215.2 crore for the quarter, compared with a net loss of ₹212 crore in the year-ago period.

Revenue rose 10.6% year-on-year to ₹2,025.6 crore, from ₹1,831.5 crore, while EBITDA increased 5% to ₹117.1 crore from ₹111.7 crore.

However, the EBITDA margin contracted to 5.78% from 6.10% a year ago.

The company said growth during the quarter was led by Pantaloons, the continued scaling of TMRW and the ramp-up of its luxury business.

However, profitability remained under pressure due to higher direct and other costs. Higher finance costs and depreciation also continued to weigh on the bottom line.

Pantaloons reported healthy revenue growth, although expansion of its owned network weighed on profitability.

TMRW continued to scale, with losses narrowing during the quarter.

Revenue from the Luxury and Other segment grew 30%, but margins declined sharply, with the ramp-up of Galeries Lafayette and The Collective, along with treasury investments, weighing on profitability.

The Ethnic segment saw muted growth, with the shortened wedding season impacting performance.

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