The consolidated EBITDA for the quarter stood at ₹683 crore (~$81.96 million), up 13 per cent YoY, while EBITDA margin was 15.9 per cent, and profit after tax (PAT) remained negative, improving from -₹108 crore in Q3 FY24 to -₹42 crore in Q3 FY25, ABFRL said in a press release.
Aditya Birla Lifestyle Brands Limited (ABLBL) which consists of Lifestyle Brands, Youth Western wear Brand, Sportswear, and Innerwear posted double digit retail growth across its brands on a network of 3300+ stores driven by robust occasion-led shopping, ABLBL margin was 16.5 per cent, 90 basis points (bps) higher compared to last year.
Lifestyle Brands, such as Louis Philippe, Van Heusen, Allen Solly, Peter England, and Simon Carter saw growth at 12 per cent YoY, reflecting strong retail performance in Q3 FY25. The segment’s revenue stood at ₹1,817 crore (~$21 million)—retail at ₹1,071 crore (~$123.8 million), wholesale at ₹292 crore, and others segment at ₹511 crore. EBITDA for the business was ₹357 crore resulting in an EBITDA margin of 19.6 per cent, up 40 bps.
Lifestyle Brands continued to perform well, driven by increased casualisation, a consistent focus on premiumisation, and improved in-store experiences, offering a diverse range of merchandise for all age groups and occasions, thereby strengthening consumer engagement and brand appeal. Emerging growth businesses within ABLBL posted 5 per cent growth with improving EBITDA margins.
De-merged ABFRL, which includes Masstige and Value Retail, Ethnic Brands, Luxury Retail, and TMRW continues to drive growth. Ethnic businesses grew 7 percent YoY led by strong festive and wedding season. Excluding TCNS, the growth was 39 per cent YoY. TMRW’s portfolio grew 26 per cent YoY with strong organic performance. Luxury retail grew 13 per cent YoY.
Pantaloons recorded quarterly sales of ₹1,305 crore (~$156.6 million), with festive LTL growth at 6 per cent, driven by superior fashion forward merchandise. This marks the fifth consecutive quarter of margin expansion, reinforcing the business’s sustained impetus towards profitability momentum for Pantaloons. The segment’s EBITDA margin expanded by 170 bps to 19.3 per cent in Q3, fuelled by strong gross margin improvements and cost control measures. This marks the fifth consecutive quarter of YoY margin expansion, reinforcing the business’s sustained impetus towards profitability momentum. Style Up has expanded to 39 stores, steadily growing its portfolio by introducing new product categories.
The designer led ethnic portfolio, comprising brands such as Sabyasachi, Shantnu & Nikhil, House of Masaba and Tarun Tahiliani, grew 41 per cent YoY, driven by Goodview Fashion Private Limited’s (GFPL) addition. House of Masaba saw 117 per cent revenue growth, with its beauty business expanding over 4x YoY, fuelled by wider distribution and strong website sales.
In premium ethnic wear brand, Tasva's sales surged over 50 per cent YoY, supported by a strong festive season and 18 per cent LTL growth, strengthening its presence in wedding markets. TCNS is undergoing transformation, streamlining distribution and focusing on profitable channels, leading to positive LTL growth.
Luxury Retail, comprising the multi-brand format ‘The Collective’ and other mono brands maintained profitable growth, with 13 per cent YoY revenue growth. The total store network has expanded to 41 stores. TMRW’s digital-first brand strategy led to a 26 per cent YoY growth. Offline expansion accelerated with five new store openings, including three TIGC and two Bewakoof outlets this quarter.
The company successfully completed raising of $490 million through qualified institutional placement (QIP) and preferential issuance. The funds raise will be earmarked towards repayment of debt to make the company debt free.
ABFRL is successfully driving its transformation through portfolio enrichment, refinement of distribution strategy and structural cost alignment, which has led to consistent improvement in profitability in a challenging market environment. With this strong foundation in place, the company is well-positioned to reignite growth while sustaining profitability improvements, the release added.
The recent fundraise will make the proposed demerged ABFRL debt free and well-capitalised to fuel faster growth of its multiple high-potential segments. Proposed ABLBL, a strong cash generating company with access to its cash flow, will be able to drive accelerated distribution expansion. Post the strategic fund raise and the demerger, ABLBL and ABFRL will be well positioned to pursue a stronger growth plan and value creation trajectory.
ALCHEMPro News Desk (SG)
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