ABFRL Q4 FY26: Revenue +16%, Pantaloons, Loss Rs 164 Cr

Demand backdrop and what management flagged

Aditya Birla Fashion and Retail Ltd (ABFRL) reported its Q4 FY26 numbers in a quarter where demand trends stayed broadly in line with recent quarters, according to management commentary. The company noted that the wedding calendar was relatively weaker versus the same period last year. It also highlighted a need to stay alert to geopolitical uncertainty and inflationary pressures, which could affect discretionary spending. Despite that backdrop, ABFRL said its revenue momentum was broad-based across channels, with both stores and e-commerce continuing to perform well.

The quarter was also marked by operational actions aimed at improving conversion and inventory productivity. Management said it shifted merchandising focus toward women’s western, menswear, and non-apparel categories, which it said saw over 20% growth. ABFRL also moved its End of Season Sale (EOSS) to January and said store experience improvements supported performance. Alongside these levers, the company continued investing behind future growth through calibrated store expansion.

Q4 FY26 headline numbers: revenue up, losses persist

ABFRL’s consolidated revenue from operations rose 15.7% year-on-year to Rs 1,990.13 crore in Q4 FY26, compared with Rs 1,719.48 crore in Q4 FY25. Another disclosure cited the same as a 16% year-on-year increase to Rs 1,990.1 crore. Total income increased to Rs 2,114 crore from Rs 1,815.4 crore a year earlier.

On profitability, the company reported a consolidated net loss of Rs 163.81 crore for the March quarter, versus a loss of Rs 170.64 crore in the corresponding quarter last year. A separate report also pegged the quarter’s net loss at Rs 163.8 crore, while management commentary referenced a reported loss of around Rs 164 crore. ABFRL also recorded exceptional expenses of Rs 11.4 crore linked to the implementation impact of the new labour code (wage code).

Pantaloons leads growth; other segments also expand

Pantaloons was the key highlight for the quarter. The value fashion chain delivered an 18.5% year-on-year increase in quarterly revenue to Rs 1,048.26 crore (reported as Rs 1,048.3 crore in another disclosure). Management commentary also indicated 19% year-on-year growth for the Pantaloons segment, led by 17% year-on-year growth in the core Pantaloons format.

The Ethnic and Others segment contributed Rs 950.21 crore in Q4 FY26 revenue, compared with Rs 846.99 crore a year ago. Management described improved consumer traction in occasion-led categories and pointed to continued scaling across the portfolio.

ABFRL also stated that its e-commerce business grew more than 30% year-on-year, supported by stronger omni-channel capability and faster fulfilment infrastructure. Within the broader portfolio commentary, the company said “Tomorrow” maintained momentum, delivering 45% year-on-year growth. Tasva delivered 33% year-on-year sales growth during the quarter.

Store additions and network expansion

ABFRL continued to expand its physical footprint during the quarter. Management said it added around 70 new stores in Q4, taking total additions for the year to over 180 stores. The company expects these stores, as they mature, to contribute meaningfully to revenue growth, productivity improvement, and profitability through operating leverage.

For the ethnic business specifically, ABFRL reported a network of over 680 stores across key markets in India. It also reported 16% like-to-like growth during FY26, indicating demand support even as the broader environment stayed mixed.

Costs, EBITDA, and key P&L moving parts

ABFRL’s total expenses in Q4 FY26 increased to Rs 2,288 crore, up from Rs 1,973 crore in Q4 FY25. The company attributed the increase to higher employee benefit expenses, finance costs, and other operational expenses. Employee benefit expenses rose to Rs 295.3 crore from Rs 282.2 crore a year ago, while finance costs increased to Rs 145.7 crore.

On operating profitability, management commentary stated that EBITDA grew 29% year-on-year, with margins at 11.5%. Separately, another report cited EBITDA for the quarter rising 57% year-on-year to Rs 311 crore. ABFRL also reported a loss before tax (PBT) of Rs 194.8 crore from continuing operations, compared with a loss of Rs 140.9 crore in the previous quarter.

Basic and diluted loss per share (from continuing and discontinued operations) stood at Rs 1.22 each for the quarter.

Full-year FY26 performance: scale-up continues, net loss widens

For FY26, ABFRL reported consolidated revenue from operations of Rs 8,176.92 crore, up 11% from Rs 7,354.7 crore in FY25. However, the company’s consolidated losses widened sharply for the year, with net loss reported at Rs 829.89 crore in FY26 versus Rs 455.82 crore in FY25.

Segment-wise annual numbers provided in the disclosures showed the Pantaloons business generating Rs 4,560.49 crore (reported as Rs 4,560.5 crore elsewhere). The Ethnic and Others segment contributed Rs 3,695 crore for the year.

In management commentary on the ethnic business, ABFRL said FY26 revenue from the segment was Rs 2,227 crore, up 14% year-on-year, and highlighted a significant profitability improvement with FY26 EBITDA margin expanding by 560 basis points to 10.8%.

Key data table

What brokerages and markets are watching

Morgan Stanley maintained an Overweight rating on ABFRL with a Rs 127 target, citing a Q4 beat led by Pantaloons growth. Still, investors are weighing the contrast between strong revenue growth and continuing losses, along with the company’s net debt position mentioned as a concern in the notes.

A separate market commentary in the provided text cited the stock closing around Rs 67.1, down 0.4% on the day, while also noting gains of 7.1% over five days and about 5% over one month. These short-window moves underline that the market is reacting to both execution improvements and ongoing profitability pressure.

Conclusion

ABFRL’s Q4 FY26 results showed clear revenue momentum, led by Pantaloons and supported by ethnic wear and digital growth, alongside continued store expansion of around 70 additions in the quarter. But the company remains loss-making, with higher costs, exceptional charges linked to labour code implementation, and broader demand risks still in focus. The next few quarters will be watched for how quickly new stores mature, whether margins remain resilient, and how cost and debt metrics trend as the company scales.