Aditya Birla Fashion and Retail Ltd. (ABFRL) Q2 FY26 Financial Performance and Strategic Update

Aditya Birla Fashion and Retail Ltd. (ABFRL) has announced its financial results for the second quarter (Q2) and half-year (H1) ended September 30, 2025. The performance this quarter demonstrates significant progress in our operational efficiency and profitability-focused strategies, coupled with steady top-line growth. Q2 FY26 Key Financial Highlights Improved Profitability: The company has substantially narrowed its consolidated net loss to ₹90.9 crore. This marks a significant improvement from a net loss of ₹195 crore reported in the corresponding quarter of the previous fiscal year (Q2 FY25). Revenue Growth: Revenue from operations saw a robust increase of 7.5% year-on-year, rising to ₹1,492 crore from ₹1,387 crore in Q2 FY25. Operational Expenses: Total expenses were maintained at ₹1,627 crore, showing only a marginal increase from ₹1,598 crore in the year-ago period, reflecting effective cost management relative to revenue growth. Cost Components: Finance costs for the quarter stood at ₹216 crore, with depreciation and amortisation at ₹252 crore. Half-Year (H1 FY26) Performance Summary The positive trajectory is consistent in the half-year results: H1 Net Loss: Reduced to ₹160 crore, a significant improvement from a loss of ₹347 crore in H1 FY25. H1 Revenue: Grew to ₹2,940 crore from ₹2,683 crore in the corresponding period last year. Strategic Update: Demerger Progress The Board of Directors has reviewed the progress of the strategic demerger of the Madura Fashion & Lifestyle (MFL) business. This plan, aimed at creating a separately listed entity, is proceeding as intended. The demerger is a pivotal step designed to unlock value. It will empower both the MFL business and the remaining ABFRL entity (comprising ethnic, luxury, and digital-first brands) to operate with independent, focused growth strategies and dedicated capital allocation.