Aditya Birla Fashion and Retail Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Aditya Birla Fashion and Retail Ltd filed with BSE on 13 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
ABFRL reported Q1 FY27 revenue of Rs 2,026 crore, up 11% year-on-year, with EBITDA of Rs 167 crore at an 8.2% margin, a decline management attributed to lower treasury income and continued investment in newer businesses. Established businesses grew high-single digits with stable margins while newer businesses like TMRW, OWND and Tasva grew around 30% year-on-year. Management said occasion-led consumption was moderated by Adhik Maas affecting the wedding season, and that TMRW's cash losses narrowed further during the quarter.
Numbers mentioned
Revenue: INR2,026 crores (Q1 FY27)
p. 3
“ABFRL reported revenue of INR2,026 crores, registering an 11% Y-o-Y growth.”
Jagdish Bajaj, page 3 of the filed PDF · View the filing
EBITDA: INR167 crores (Q1 FY27)
p. 4
“Moving to profitability, EBITDA for the quarter stood at INR167 crores with a margin of 8.2%.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
Reported loss: INR249 crores (Q1 FY27)
p. 4
“Reported loss for the quarter stood at INR249 crores, compared to a loss of INR234 crores in the corresponding period last year, primarily due to higher Ind AS depreciation and finance costs associated with new store openings.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
Gross cash: approximately INR1,000 crores (Q1 FY27)
p. 4
“At the standalone level, we ended the quarter with gross cash of approximately INR1,000 crores.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
Store count: 1,286 stores (Q1 FY27)
p. 4
“At the end of the quarter, our portfolio comprised 1,286 stores, spanning more than 7.9 million square feet of retail space.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
Pantaloons segment revenue: INR1,204 crores (Q1 FY27)
p. 4
“Coming to the Pantaloons segment. Revenue for the quarter stood at INR1,204 crores, registering a 10% Y-o-Y growth.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
Pantaloons EBITDA margin: 15.9% (Q1 FY27)
p. 4
“EBITDA margin came in at 15.9%, lower than the previous year, largely reflecting the continued scaled up of OWND.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
Ethnic business revenue: INR454 crores (Q1 FY27)
p. 5
“This business in Q1 reported revenue of INR454 crores, registering a 4% Y-o-Y growth while margins remained broadly stable.”
Jagdish Bajaj, page 5 of the filed PDF · View the filing
TCNS retail revenue growth: 10% Y-o-Y (Q1 FY27)
p. 5
“Now within the premier ethnic wear brand, TCNS, the retail revenue grew 10% Y-o-Y, supported by low single-digit like-to-like growth and network expansion, with 8 new stores added during the quarter.”
Jagdish Bajaj, page 5 of the filed PDF · View the filing
Tasva growth: 35% Y-o-Y (Q1 FY27)
p. 5
“Tasva delivered robust growth of 35% Y-o-Y, with double-digit like-to-like growth, marking the eighth consecutive quarter of positive LTL performance.”
Jagdish Bajaj, page 5 of the filed PDF · View the filing
Tasva store count: 90 stores (Q1 FY27)
p. 5
“Tasva's retail footprint now stands at 90 stores, and we continue to expand its distribution in key occasion wear market going forward.”
Jagdish Bajaj, page 5 of the filed PDF · View the filing
TMRW primary sales growth: 11% Y-o-Y (Q1 FY27)
p. 6
“Turning to TMRW, primary sales grew 11% Y-o-Y, while secondary sales increased at a faster pace of 16%, reflecting healthy underlying consumer demand.”
Jagdish Bajaj, page 6 of the filed PDF · View the filing
TMRW and Wrogn store count: over 140 stores (Q1 FY27)
p. 6
“Including Wrogn, the portfolio now operates over 140 stores across key markets nationwide, providing a stronger platform for the next phase of growth.”
Jagdish Bajaj, page 6 of the filed PDF · View the filing
Pantaloons like-to-like growth: 4% (Q1 FY27)
p. 4
“The Pantaloons business delivered another solid quarter, with revenue growing 7%, supported by a healthy 4% like-to-like growth.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
OWND growth: 55% Y-o-Y (Q1 FY27)
p. 4
“OWND delivered 55% Y-o-Y growth, primarily led by network expansion and increasing consumer traction.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Cash funding requirement — INR500 crores to INR550 crores annually · next 2 years
stated firmly by Jagdish Bajaj
p. 4
“We are confident that this cash is enough for us to fund the businesses for next 2 years, with annual cash funding requirement of INR500 crores to INR550 crores.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
Free cash flow — FCF positive · FY 2029 and '30
stated as an aspiration by Jagdish Bajaj
p. 4
“And by FY 2029 and '30, we expect the business to be FCF positive.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
TMRW brand-level cash profitability — cash profitability · next 12 to 18 months
stated as an aspiration by Jagdish Bajaj
p. 6
“We will continue to drive the trajectory going forward as well with a clear path to achieving brand-level cash profitability over the next 12 to 18 months.”
Jagdish Bajaj, page 6 of the filed PDF · View the filing
Losses
stated as an aspiration by Jagdish Bajaj
p. 6
“We expect the losses to narrow going forward and to build a business that is sizable and profitable in context of the large market opportunity that is the fashion and lifestyle space in India.”
Jagdish Bajaj, page 6 of the filed PDF · View the filing
Pantaloons store additions H1 — 20-22 stores · first half of the year
stated firmly by Ashish Dikshit
p. 7
“We will probably add more stores towards the second half of the year. For the first half, I think our expansion plan is about 20, 22 stores.”
Ashish Dikshit, page 7 of the filed PDF · View the filing
TMRW revenue growth — 20% plus · FY27
stated conditionally by Ashish Dikshit
p. 7
“We expect TMRW to continue to be on 20% plus revenue growth rate for the year.”
Ashish Dikshit, page 7 of the filed PDF · View the filing
Portfolio profitability — lower losses · FY28
stated firmly by Ashish Dikshit
p. 7
“on an annual basis we will have lower losses this year, and '28 will probably be even lower losses.”
Ashish Dikshit, page 7 of the filed PDF · View the filing
Portfolio profitability — fully profitable · FY29
stated firmly by Ashish Dikshit
p. 7
“We had indicated that '29 is the year when portfolio will become fully profitable, and that's really the trajectory that we are on.”
Ashish Dikshit, page 7 of the filed PDF · View the filing
Standalone cash — around INR500 crores · year-end FY27
stated firmly by Jagdish Bajaj
p. 7
“By year-end, I will have around INR500 crores.”
Jagdish Bajaj, page 7 of the filed PDF · View the filing
Pantaloons like-to-like growth — high single digits · annual
stated as an aspiration by Ashish Dikshit
p. 8
“We hope that as we go forward, the rest of the year, we'll be able to improve it and to get the annual like-to-like growth in at least high single digits.”
Ashish Dikshit, page 8 of the filed PDF · View the filing
TCNS new store additions — 35 to 40 stores · FY27
stated firmly by Ashish Dikshit
p. 9
“New store openings, we look at, I think about 35 to 40 stores, probably at an overall level, which would be about close to 10% of space addition because these stores are slightly bigger.”
Ashish Dikshit, page 9 of the filed PDF · View the filing
Ethnic segment growth — 20% plus · FY27
stated conditionally by Ashish Dikshit
p. 10
“We expect this segment to perform 20% plus at an overall level, despite some of the drag which the TCNS portfolio currently has, which we expect to come back to at least early double-digit kind of growth.”
Ashish Dikshit, page 10 of the filed PDF · View the filing
The Collective and Galeries Lafayette breakeven — break even · second half of this year
stated conditionally by Ashish Dikshit
p. 11
“What I would say is between our The Collective business and Galeries Lafayette, we expect to break even, if not in the -- at least in the second half of this year at a total level, which is a combined level.”
Ashish Dikshit, page 11 of the filed PDF · View the filing
Tasva revenue for profitability — INR400 crores to INR500 crores
stated as an aspiration by Ashish Dikshit
p. 14
“I think double of where we are, between INR400 crores to INR500 crores.”
Ashish Dikshit, page 14 of the filed PDF · View the filing
Tasva store additions — 25 to 30 stores · this year
stated firmly by Ashish Dikshit
p. 15
“So this year, our plan is to add 25, 30 stores on a current network of about 90-odd stores, which is a 30% expansion of network, and growth rate to be in line with that, which is pretty much what you saw in this quarter, 35% year-on-year growth.”
Ashish Dikshit, page 15 of the filed PDF · View the filing
TMRW profitability — profitable · FY29 to FY30
stated as an aspiration by Ashish Dikshit
p. 16
“We've said several times, FY29 is the year where we expect TMRW to sort of come. Between '29 to '30 is when we believe that this business will become profitable.”
Ashish Dikshit, page 16 of the filed PDF · View the filing
Capex plan — approximately INR450 crores · this year
stated firmly by Jagdish Bajaj
p. 16
“Prerna, we have indicated approximately INR450 crores, including capex and the working capital needs of all our businesses this year.”
Jagdish Bajaj, page 16 of the filed PDF · View the filing
Pantaloons net store addition — 20 stores · this year
stated firmly by Ashish Dikshit
p. 13
“As far as the net store addition -- the store addition is concerned, we expect to add 20 stores this year.”
Ashish Dikshit, page 13 of the filed PDF · View the filing
TMRW store addition — 75 plus stores · this year
stated firmly by Ashish Dikshit
p. 18
“This year, we expect to add 75 plus stores across the portfolio for TMRW brands.”
Ashish Dikshit, page 18 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Pantaloons grew 7-7.5% of the 10% segment growth, with the remainder from OWND, while profitability was mostly driven by Pantaloons as OWND remains in an investment phase.
Answered by Ashish Dikshit
Asked by Garima Mishra: How much of Pantaloons segment growth came from OWND versus Pantaloons itself?
p. 6
“Pantaloons' business grew 7-7.5% this quarter of the total segment growth of 10%, and the remaining was from OWND.”
Ashish Dikshit, page 6 of the filed PDF · View the filing
Management said TMRW should continue at 20% plus revenue growth for the year despite the quarter's slowdown, with losses reducing.
Answered by Ashish Dikshit
Asked by Garima Mishra: What is TMRW's expected growth trajectory given the slower quarter?
p. 7
“We expect TMRW to continue to be on 20% plus revenue growth rate for the year.”
Ashish Dikshit, page 7 of the filed PDF · View the filing
Management said the quarter fluctuated, with a weak April, strong May, and weak June, dragging the quarter average to about 4%.
Answered by Ashish Dikshit
Asked by Tejash Shah: How did Pantaloons like-to-like growth trend through the quarter given the moderation from 14% to 4%?
p. 8
“We started with a little bit lower April. May was much better with significant double digits, but June again came down.”
Ashish Dikshit, page 8 of the filed PDF · View the filing
Management called it a disappointing quarter for organic performance, related to prior liquidation of old inventory.
Answered by Ashish Dikshit
Asked by Archana Menon: Why did TCNS like-to-like growth fall from 7-8% to 2%?
p. 9
“I think, I have to say that with just 2% like-to-like, this has been a somewhat disappointing quarter from organic performance.”
Ashish Dikshit, page 9 of the filed PDF · View the filing
Management said they believe they have passed the cleanup phase and expect the business to turn around from the coming festive season.
Answered by Ashish Dikshit
Asked by Sameer Gupta: When will the TCNS cleanup be completed and the business return to healthy growth?
p. 11
“We are behind that phase, and we expect that from this season onwards, which is festive period this year onward, we'll start to turn the business around.”
Ashish Dikshit, page 11 of the filed PDF · View the filing
Management said 2 out of 6 brands are already profitable at the brand level, with plans to expand that.
Answered by Ashish Dikshit
Asked by Prerna Jhunjhunwala: Which TMRW brands are currently profitable?
p. 16
“So I think at a brand level, 2 out of 6 brands are already profitable.”
Ashish Dikshit, page 16 of the filed PDF · View the filing
Management said most of the cost pressure had not yet hit in Q1 and would show up more in Q2 and Q3.
Answered by Ashish Dikshit
Asked by Parth Shah: Will input cost inflation impact margins more in the coming quarters?
p. 18
“In fact, quarter one has not seen much of the cost pressure, so most of it is likely to be in Q2 and Q3 at this point of time.”
Ashish Dikshit, page 18 of the filed PDF · View the filing
Risks flagged
Occasion-led wedding wear consumption was impacted by Adhik Maas affecting the peak wedding season.
p. 3
“Occasion-led consumption, however, saw some moderation as Adhik Maas impacted the peak wedding season and consequently led to lower wedding-related purchases.”
Jagdish Bajaj, page 3 of the filed PDF · View the filing
Designer wear businesses saw order book decline due to lower wedding purchases linked to global disruptions.
p. 5
“Some of our designer wear businesses also got impacted due to lower wedding purchases in context of global disruptions, where the order book went down.”
Jagdish Bajaj, page 5 of the filed PDF · View the filing
Raw material cost inflation of around 4% affecting Pantaloons and OWND, with only partial price pass-through.
p. 10
“So there is inflation of close to 4% plus, which is there in both the businesses.”
Ashish Dikshit, page 10 of the filed PDF · View the filing
Gross margins expected to face some negative impact in the second half due to unrecovered cost increases.
p. 10
“But some of the margins at a gross margin level certainly will be impacted as we go into the second half.”
Ashish Dikshit, page 10 of the filed PDF · View the filing
The economy is moving toward a more inflationary phase in the second half, which needs to be monitored.
p. 8
“we are moving to a slightly more inflationary phase in the second half of the year, so we'll have to keep watching on how that plays out.”
Ashish Dikshit, page 8 of the filed PDF · View the filing
Galeries Lafayette and The Collective remain operationally loss-making due to overheads not yet covering business scale.
p. 11
“the business is still operationally loss-making because the overheads do not cover the size of the business in its early stages.”
Ashish Dikshit, page 11 of the filed PDF · View the filing
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