Aditya Birla Fashion and Retail Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Aditya Birla Fashion and Retail Ltd filed with BSE on 28 May 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 Q4 FY26 revenue growth of 16% year-on-year to INR1,990 crores, with Pantaloons delivering 19% growth and TMRW growing 45%. Adjusted for one-off gains in both years, EBITDA grew 29% year-on-year with margins at 11.5%, while the ethnic business saw margin expansion of 390 basis points due to reduced TCNS losses. Management discussed a strategic reset in Pantaloons over the past 18 months, raw material inflation of 3-5%, and plans to remain FCF positive at the standalone level by FY29.
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Numbers mentioned
Revenue: INR1,990 crores (Q4 FY26)
p. 3
“ABFRL posted 16% Y-o-Y growth to reach INR1,990 crores versus INR1,719 crores last year.”
Jagdish Bajaj, page 3 of the filed PDF · View the filing
Pantaloons segment revenue growth: 19% Y-o-Y (Q4 FY26)
p. 3
“Pantaloons segment delivered 19% Y-o-Y growth, led by 17% Y-o-Y growth”
Jagdish Bajaj, page 3 of the filed PDF · View the filing
TMRW growth: 45% Y-o-Y (Q4 FY26)
p. 4
“TMRW maintained momentum, delivering 45% growth year-on-year.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
EBITDA growth (adjusted): 29% Y-o-Y, margin 11.5% (Q4 FY26)
p. 4
“Excluding both of these impact, EBITDA grew 29% year-on-year with margins at 11.5%.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
Reported loss: INR164 crores (Q4 FY26)
p. 4
“Reported loss for the quarter stood at INR164 crores compared to INR171 crores in the same period last year.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
Full year revenue: INR8,177 crores (FY26)
p. 4
“ABFRL delivered revenue of INR8,177 crores, registering an 11% Y-o-Y growth.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
Full year EBITDA (adjusted): INR903 crores, margin 11% (FY26)
p. 4
“EBITDA adjusted for the demerger gain and the revaluation gain in TMRW's associates grew by 23% Y-o-Y to INR903 crores with margin at 11% versus 10% last year.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
Gross cash (consolidated): INR1,545 crores (as of March 2026)
p. 4
“As of March 2026, ABFRL had gross cash of INR1,545 crores at the consolidated level, while gross cash at the standalone level stood at INR1,144 crores.”
Jagdish Bajaj, page 4 of the filed PDF · View the filing
Ethnic business FY26 EBITDA margin: 10.8% (FY26)
p. 5
“Profitability improved significantly with FY '26 EBITDA margin expanding by 560 basis points to 10.8%.”
Jagdish Bajaj, page 5 of the filed PDF · View the filing
Pantaloons like-to-like growth: 14% (Q4 FY26)
p. 5
“The performance was supported by healthy 14% like-to-like growth in Pantaloons format, reflecting sustained underlying momentum.”
Jagdish Bajaj, page 5 of the filed PDF · View the filing
Pantaloons EBITDA margin: 15.5% (Q4 FY26)
p. 5
“Profitability also improved during the quarter with EBITDA margin at 15.5%, expanding by 40 basis points year-on-year.”
Jagdish Bajaj, page 5 of the filed PDF · View the filing
OWND store network: 79 stores (FY26)
p. 5
“OWND continues to strengthen its presence with its store network expanding to 79 stores.”
Jagdish Bajaj, page 5 of the filed PDF · View the filing
Total store additions: over 180 stores (FY26)
p. 3
“During the quarter, we added around 70 new stores, taking the total additions for the year to over 180 stores.”
Jagdish Bajaj, page 3 of the filed PDF · View the filing
Raw material inflation: 3% to 4%
p. 9
“We are experiencing something like 3% to 4% sort of inflationary pressure as far as raw materials is concerned.”
Ashish Dikshit, page 9 of the filed PDF · View the filing
Pantaloons margin excluding OWND: 18% to 18.5% (FY26 and Q4 FY26)
p. 13
“Pantaloons margin for the quarter, and I think for the year are also between 18% to 18.5%, which is the margin that Pantaloons has consistently delivered slightly higher than last year.”
Ashish Dikshit, page 13 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.
Pantaloons store additions — 20-22 stores · FY27
stated firmly by Sangeeta Tanwani
p. 12
“though the plan for this financial year is about 20, 22 stores, I think as we get more confident, we will look at some point of time to step up this agenda and accelerate our store expansion.”
Sangeeta Tanwani, page 12 of the filed PDF · View the filing
TCNS breakeven — breakeven · end of FY27, profitable by FY28
stated as an aspiration by Ashish Dikshit
p. 12
“We'll probably towards the end of FY '27 is when we would expect to breakeven. And on a full year basis, definitely be profitable by FY '28 onwards.”
Ashish Dikshit, page 12 of the filed PDF · View the filing
Tasva profitability — profitable · FY28
stated as an aspiration by Ashish Dikshit
p. 12
“We had said FY '28, and we still feel that's the right assessment at this point as well.”
Ashish Dikshit, page 12 of the filed PDF · View the filing
Standalone FCF positive — FCF positive · FY29
stated firmly by Jagdish Bajaj
p. 10
“As stated, we are planning to utilize it INR1,000 crores in FY '26, INR600 crores in FY '27 and INR500 crores in '28, post which we aim to be FCF positive in FY '29.”
Jagdish Bajaj, page 10 of the filed PDF · View the filing
FY27 cash utilization at standalone level — INR600 crores · FY27
stated firmly by Jagdish Bajaj
p. 11
“But FY '27, we aim to utilize INR600 crores towards ramping up our businesses and invest in working capital and capex of which INR450 crores and INR150 crores will go into investment in subsidiaries.”
Jagdish Bajaj, page 11 of the filed PDF · View the filing
TMRW portfolio profitability — profitable · FY29
stated as an aspiration by Ashish Dikshit
p. 19
“We had indicated FY '29 as the year in which we expect that TMRW as a portfolio level, some of all brands to become profitable.”
Ashish Dikshit, page 19 of the filed PDF · View the filing
FY27 capex at console level — INR250-300 crores · FY27
stated firmly by Jagdish Bajaj
p. 17
“Next year, this one-off type of thing will not come. So, we have -- in our plan, I already conveyed roughly INR300 crores capex, INR250 crores to INR300 crores at console level.”
Jagdish Bajaj, page 17 of the filed PDF · View the filing
Net debt to EBITDA target — 2 to 3
stated as an aspiration by Ashish Dikshit
p. 16
“anything around 2 to 3 is what we have mentioned for any of our fashion companies.”
Ashish Dikshit, page 16 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.
Management attributed growth to a merchandising strategy reset, new store design, online growth, and marketing investments including celebrity endorsement.
Answered by Sangeeta Tanwani
Asked by Archana Menon: What drove the 17% Pantaloons format revenue growth?
p. 7
“We've seen growth in excess of 20% in each of these categories in quarter 4.”
Sangeeta Tanwani, page 7 of the filed PDF · View the filing
Online is 3-4% of revenue; the biggest driver of growth has been increase in basket sizes.
Answered by Sangeeta Tanwani
Asked by Archana Menon: What is Pantaloons' online revenue share, and what is driving the improvement — footfall, conversion, or ASP?
p. 8
“Today, it's about 3%, 4% of our business.”
Sangeeta Tanwani, page 8 of the filed PDF · View the filing
Management said there was a marginal slowdown in March but demand normalized through April, with possible pressure in H2 from inflation.
Answered by Ashish Dikshit
Asked by Tejash Shah: How has demand held up given macro disruptions in the last month of the quarter?
p. 9
“But we have seen demand nearly normal for most part of April and going into this quarter.”
Ashish Dikshit, page 9 of the filed PDF · View the filing
Growth came largely from volume as pricing was negligible and even slightly negative in Q4.
Answered by Sangeeta Tanwani
Asked by Tejash Shah: What was the volume versus price mix behind the Pantaloons LTL growth?
p. 10
“So, a large part of the growth has come from volume.”
Sangeeta Tanwani, page 10 of the filed PDF · View the filing
CFO detailed planned cash utilization phased across FY26-28 before turning FCF positive, with sufficient cash on hand for the next two years.
Answered by Jagdish Bajaj
Asked by Garima Mishra: How is the company viewing liquidity given cash consumption of about INR1,400 crores in FY26?
p. 11
“And I have roughly INR1,150 crores cash available with me, which is sufficient for next 2 years' cash.”
Jagdish Bajaj, page 11 of the filed PDF · View the filing
TCNS cash losses have halved versus last year; Tasva remains in strong growth but profitability is still expected around FY28.
Answered by Ashish Dikshit
Asked by Garima Mishra: What are TCNS losses and Tasva's progress toward breakeven?
p. 12
“As far as TCNS is concerned, Jagdish in his opening remarks had talked about how the losses have halved this year versus FY '25.”
Ashish Dikshit, page 12 of the filed PDF · View the filing
Pantaloons margin excluding OWND is 18-18.5%, with OWND losses accounting for the difference from segmental profitability.
Answered by Ashish Dikshit
Asked by Ankit Kedia: What would Pantaloons margins look like excluding OWND, and what are OWND's losses?
p. 13
“OWND losses are, therefore, causing the rest of the difference between the segmental profitability.”
Ashish Dikshit, page 13 of the filed PDF · View the filing
Management said the store pipeline takes 6-9 months to build for quality locations, so guidance has not shifted despite improving trends.
Answered by Ashish Dikshit
Asked by Sameer Gupta: Why isn't store addition pace accelerating despite strong recent performance?
p. 15
“So, anything that we decide to do doesn't really play out in 6 to 9 months. And that's why the guidance has not shifted.”
Ashish Dikshit, page 15 of the filed PDF · View the filing
Management said the current cash and funding plan is adequate and in line with prior long-term guidance on cash utilization.
Answered by Ashish Dikshit
Asked by Sameer Gupta: Is there a risk of rising net debt requiring equity infusion?
p. 16
“We are pretty much going as per that plan, which factors in the stage level of profitability shift across various businesses as well as growth in the capex needs of the business”
Ashish Dikshit, page 16 of the filed PDF · View the filing
Management said the INR800 crores cash is substantial relative to the business run rate and sufficient to fund growth and drive profitability.
Answered by Ashish Dikshit
Asked by Kunal Bhatia: Will TMRW need additional debt beyond the INR800 crores cash to reach profitability?
p. 19
“So, we feel that there is enough cash lever to both grow the business and with scale, also drive profitability within the brands and the overall ecosystem.”
Ashish Dikshit, page 19 of the filed PDF · View the filing
Risks flagged
Geopolitical uncertainties emerging toward the end of the quarter
p. 3
“towards the end of the quarter, market began to see the emergence of certain disruptions in the context of the geopolitical uncertainties, and we shall see how these developments play out”
Jagdish Bajaj, page 3 of the filed PDF · View the filing
Weaker wedding calendar compared to last year
p. 3
“The wedding calendar was relatively weaker compared to the same period last year.”
Jagdish Bajaj, page 3 of the filed PDF · View the filing
Inflationary pressure potentially compressing demand in second half of the year
p. 9
“most of the inflationary pressures are perhaps still at work and may play out fully over the next 3 to 4 months. And therefore, consequent sort of pressure on demand is something that we'll have to wait and watch for in the second half of the year.”
Ashish Dikshit, page 9 of the filed PDF · View the filing
Demand compression risk from rising overall cost inflation
p. 10
“My only concern is really the demand compression towards, if any, coming towards the second half of the year when the cost inflation, not just in textile, but overall basket, if it brings any slowdown in the market.”
Ashish Dikshit, page 10 of the filed PDF · View the filing
Rentals could compress if demand slowdown is prolonged
p. 18
“If the demand compression is slightly longer, definitely, there will be compression on the rental side as well.”
Ashish Dikshit, page 18 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.