Aditya Birla Lifestyle Brands Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Aditya Birla Lifestyle Brands Ltd filed with BSE on 07 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
Aditya Birla Lifestyle Brands reported Q1 FY27 revenue growth of 11% Y-o-Y to Rs. 2,046 crores, with Lifestyle Brands growing 10% and Emerging Brands growing 19%. Consolidated EBITDA rose 14% Y-o-Y to Rs. 327 crores with margin expansion of 50 bps to 16%, while PAT grew 21% Y-o-Y to Rs. 29 crores. Management attributed the quarter's growth to healthy performance across brands and channels, with retail, e-commerce and wholesale all contributing, and highlighted store expansion and continued margin improvement.
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Numbers mentioned
Revenue: Rs. 2,046 crores (Q1 FY27)
p. 3
“ABLBL revenue grew 11% Y-o-Y to Rs. 2,046 crores.”
Dharmendra Lodha, page 3 of the filed PDF · View the filing
Lifestyle Brands revenue: Rs. 1,725 crores (Q1 FY27)
p. 3
“Within segments, Lifestyle Brands grew 10% Y-o-Y with revenue at Rs. 1,725 crores, whereas Emerging Brands grew at 19% versus last year to Rs. 332 crores.”
Dharmendra Lodha, page 3 of the filed PDF · View the filing
Emerging Brands revenue: Rs. 332 crores (Q1 FY27)
p. 3
“Within segments, Lifestyle Brands grew 10% Y-o-Y with revenue at Rs. 1,725 crores, whereas Emerging Brands grew at 19% versus last year to Rs. 332 crores.”
Dharmendra Lodha, page 3 of the filed PDF · View the filing
Consolidated EBITDA: Rs. 327 crores (Q1 FY27)
p. 4
“Consolidated EBITDA increased by 14% Y-o-Y to Rs. 327 crores, compared to Rs. 286 crores in the corresponding quarter last year, while EBITDA margin expanded by 50 bps to 16%.”
Dharmendra Lodha, page 4 of the filed PDF · View the filing
PAT: Rs. 29 crores (Q1 FY27)
p. 4
“PAT grew 21% Y-o-Y to Rs. 29 crores.”
Dharmendra Lodha, page 4 of the filed PDF · View the filing
New stores opened: more than 65 (Q1 FY27)
p. 4
“During the quarter, we opened more than 65 new stores across the portfolio.”
Dharmendra Lodha, page 4 of the filed PDF · View the filing
Retail footprint: 3,362 stores (Q1 FY27)
p. 4
“At the end of the quarter, our retail footprint stood at 3,362 stores, spanning nearly 5 million square feet across more than 800 cities and towns.”
Dharmendra Lodha, page 4 of the filed PDF · View the filing
Lifestyle Brands EBITDA margin: 18.5% (Q1 FY27)
p. 4
“EBITDA stood at Rs. 319 crores, translating into an EBITDA margin of 18.5%, and an expansion of approximately 40 bps over the corresponding quarter last year.”
Dharmendra Lodha, page 4 of the filed PDF · View the filing
Retail like-to-like growth (Lifestyle Brands): 7% (Q1 FY27)
p. 4
“Retail continued its consistent performance, supported by healthy like-to-like growth of 7% across an extensive store network of almost 3,000 stores.”
Dharmendra Lodha, page 4 of the filed PDF · View the filing
Emerging Business EBITDA margin: 4.3% (Q1 FY27)
p. 5
“Profitability also improved meaningfully, with EBITDA margin expanding by 240 bps Y-o-Y to 4.3% during the quarter.”
Dharmendra Lodha, page 5 of the filed PDF · View the filing
Gross store additions: 68 (Q1 FY27)
p. 14
“It was 68. 68, right? 68 was the gross total.”
Ashish Dixit, page 14 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.
Store expansion — more than 300 stores · FY27
stated firmly by Dharmendra Lodha
p. 4
“We are confident to achieve our targeted expansion of more than 300 stores during this fiscal year.”
Dharmendra Lodha, page 4 of the filed PDF · View the filing
Cost increase — 3% to 4% · Q2 to Q3
stated firmly by Ashish Dixit
p. 6
“For the second half of the year, and particularly between Q2 and Q3, we expect between 3% to 4% cost increase.”
Ashish Dixit, page 6 of the filed PDF · View the filing
Net store additions — 150 to 200 stores · FY27
stated firmly by Ashish Dixit
p. 15
“On a net basis, I think we will close in the year between 120 to 140 odd stores, sometimes a little higher, sometimes a little lower.”
Ashish Dixit, page 15 of the filed PDF · View the filing
Van Heusen Innerwear network addition — about 20% addition in the network · next couple of years
stated as an aspiration by Ashish Dixit
p. 12
“Over the next couple of years, we expect in line with the overall growth, about 20% kind of addition in the network as well.”
Ashish Dixit, page 12 of the filed PDF · View the filing
Reebok growth rate — closer to 20% growth rate · longer term
stated as an aspiration by Ashish Dixit
p. 17
“we still feel confident over longer term, closer to 20% growth rate is what is possible for this business.”
Ashish Dixit, page 17 of the filed PDF · View the filing
Reebok revenue — double it in another 3, 3.5 years · 3 to 3.5 years
stated as an aspiration by Ashish Dixit
p. 18
“We more than doubled in less than three years. And I think the current trajectory gives us confidence that we can further double it in another 3, 3.5 years.”
Ashish Dixit, page 18 of the filed PDF · View the filing
Small town portfolio share of revenue — more than 20% of portfolio · next three-four years
stated as an aspiration by Ashish Dixit
p. 19
“Over the next three-four years, I think it will be more than 20% of our portfolio.”
Ashish Dixit, page 19 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.
A slight delay in the festive period pushed primary billing into Q2, but secondary growth remains strong.
Answered by Ashish Dixit
Asked by Archana Menon: What is causing the divergence between primary and secondary sales in wholesale this quarter?
p. 5
“I think the primary difference was slight marginal delay in the festive period this time, which pushes a lot of primary billing into the second quarter.”
Ashish Dixit, page 5 of the filed PDF · View the filing
Marginal to no cost pressure in Q1, with 3-4% expected increase in H2, mitigated through productivity and cost rationalization.
Answered by Ashish Dixit
Asked by Archana Menon: What cost inflation is being seen and have price hikes been taken?
p. 6
“Archana, as far as first quarter is concerned, there has been marginal to no cost pressure because most of this was committed much earlier.”
Ashish Dixit, page 6 of the filed PDF · View the filing
A mix of execution and market recovery in smaller towns.
Answered by Ashish Dixit
Asked by Videesha Sheth: What is driving small-town double-digit LTL growth?
p. 7
“I would say that is the integral part of small-town strategy. We have devised a merchandise mix done over the last several years to clearly address, so that's not changed at all.”
Ashish Dixit, page 7 of the filed PDF · View the filing
A combination of channel mix and slightly higher provisioning, not raw material cost increases.
Answered by Ashish Dixit
Asked by Sameer Gupta: What is driving the gross margin contraction this quarter?
p. 8
“It is a combination of channel mix, because different channels have different gross margins and slightly higher provisioning, which also keep moving quarter-on-quarter.”
Ashish Dixit, page 8 of the filed PDF · View the filing
Garment manufacturing is currently excluded from the hike, and the company has diversified its manufacturing base.
Answered by Ashish Dixit
Asked by Sameer Gupta: What is the impact of Karnataka minimum wage hikes on manufacturing?
p. 8
“As you know, the current increase is with health and it is still at the high court level. We will respond appropriately as we find a decision coming on that.”
Ashish Dixit, page 8 of the filed PDF · View the filing
E-commerce profitability has been brought close to retail profitability through disciplined, non-discount-led growth.
Answered by Ashish Dixit
Asked by Sameer Gupta: What is the economics of the e-commerce channel relative to retail?
p. 9
“Over the years, we have managed to bring this channel profitability very close to our retail profitability. It is just marginally lower than our retail profitability.”
Ashish Dixit, page 9 of the filed PDF · View the filing
BIS remains an ongoing compliance requirement but current factories are BIS-enabled and the company is diversifying sourcing domestically.
Answered by Ashish Dixit
Asked by Hemant Shah: Is Reebok facing BIS-related sourcing issues?
p. 12
“So, BIS does remain a problem. As you know, the factories have to get the BIS approval on an ongoing and annual basis, and we are still continuing to operate with a couple of factories outside India.”
Ashish Dixit, page 12 of the filed PDF · View the filing
Growth is marginally ahead of industry, driven roughly half by premiumization/price and half by footfalls.
Answered by Ashish Dixit
Asked by Jignanshu Gor: Is Lifestyle Brands growth driven by market share gains or industry growth, and by price or footfall?
p. 14
“So, it would be split between price increase and footfalls. But probably even if I don't have the exact data, but over a longer term when I see, a half of it at least would be coming through premiumization.”
Ashish Dixit, page 14 of the filed PDF · View the filing
Store closures are concentrated earlier in the year due to network rationalization timing, with expansion weighted to H2.
Answered by Ashish Dixit
Asked by Aditya Bansal: Why are net store additions low despite the expansion ambition?
p. 15
“So, typically, what we do is at the beginning of the year, we take calls on the rationalization of network somewhere around January, February, when we have seen the season post-Diwali and evaluated the network performance.”
Ashish Dixit, page 15 of the filed PDF · View the filing
Tier 3/4 markets are growing over 15% versus about 10% in metros/Tier 1.
Answered by Ashish Dixit
Asked by Prerna Jhunjhunwala: What is the growth differential between Tier 1 and Tier 3/4 markets?
p. 16
“Tier 3, tier 4 markets where small towns are, which is a small part of our business, is growing in excess of 15%, while metros in Tier 1 is growing closer to 10%.”
Ashish Dixit, page 16 of the filed PDF · View the filing
Reebok has the highest like-to-like growth in the network, with strong secondary sales indicating organic growth.
Answered by Ashish Dixit
Asked by Devanshu Bansal: How is Reebok's growth performing organically versus through network additions?
p. 17
“Reebok has the highest like-to-like growth in the network, close to mid-teen-double-digit for the last few quarters.”
Ashish Dixit, page 17 of the filed PDF · View the filing
Risks flagged
Expected cost increase of 3-4% in H2 from raw materials, logistics, and labor costs
p. 6
“This is a function of both raw material prices, higher logistics cost, in some cases, higher labor cost also due to minimum wage impact.”
Ashish Dixit, page 6 of the filed PDF · View the filing
Potential consumer inflation impact on demand in second half of the year
p. 10
“But we are cautious that this may play out in the second half of the year.”
Ashish Dixit, page 10 of the filed PDF · View the filing
Karnataka minimum wage increase pending at high court, though garmenting currently excluded
p. 8
“As you know, the current increase is with health and it is still at the high court level.”
Ashish Dixit, page 8 of the filed PDF · View the filing
BIS approval renewal requirements for factories outside India
p. 12
“So, BIS does remain a problem. As you know, the factories have to get the BIS approval on an ongoing and annual basis, and we are still continuing to operate with a couple of factories outside India.”
Ashish Dixit, page 12 of the filed PDF · View the filing
Adhik maas temporarily impacted demand during peak wedding period
p. 3
“Occasionally, we have experienced modest moderation, primarily due to the adhik maas, which temporarily impacted demand during peak wedding period.”
Dharmendra Lodha, page 3 of the filed PDF · View the filing
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