Post by Amrit Bansal

“My portfolio houses over 25+ brands.” 💸 That is the kind of claim only a true fashion powerhouse can make. This is Legacy to Listed : Fashion Financials EP-2 If I had to start a fashion industry article with a family owned business that knows the actual nerves of the Indian fashion, Aditya Birla Fashion and Retail Ltd. (ABFRL) appears to be the most compatible choice, carrying the prestigious 'Aditya Birla' in its name the company lies under the massive Aditya Birla Umbrella that itself encompasses more than 25 different entities spanning across multiple sectors. Although ABFRL was founded in the year 2015 but it was surely not the beginning of the Birlas into the fashion industry. The history of Aditya Birla Group's fashion business started from a humble cotton trading business that was started by Shri Seth Shiv Narayan Birla in Pilani all the way back in 1857 !!! (which also marked the beginning of the conglomerate Birla group.) [You can check the history/timeline of Aditya Birla clothing business in the picture attached along with.] As of March 31, 2026, Aditya Birla Fashion and Retail Limited (ABFRL) operates a retail network of 1,273 stores across the country boasting a massive variety of brands such as Pantaloons, Style Up, OWND!, Sabyasachi and many more. In May 2025, the company conducted a crucial demerger separating the lifestyle western segment from the ABFRL to form a new entity called Aditya Birla Lifestyle Brands Ltd (ABLBL). Talking about ABLBL, which showcases brands such as Louis Philippe, Van Heusen, Allen Solly, and Peter England etc. the entity holds a vast network of 3,348 exclusive brand outlets alongside its multi-brand presence. Though the financials of ABFRL tell a mixed story, (as of FY26) The revenue is as strong as INR 8177 crores. A YoY growth (revenue) of 11% Improved EBITDA margins yet, The company has incurred a net loss of INR 830 crores ( a solid 10.15% of the revenue) Though this loss feels alarming but that's not the case, as the company is rapidly expanding , for example they added over 180 new stores during FY26 and continue to invest heavily in newer, unique brands expanding their portfolio and to service the debt required for this expansion the company takes a hit at its finance costs that weakens the bottom line. However, the fashion industry constantly faces margin pressures and demand volatility that makes the burn inevitable, the one who sails the longest, survives ! In the next episode we will try to dive deeper into the business strategies of the company. #Finance #LinkedIn #EquityResearch #fashion #LegacyToListed #100DaysWithTVS The Valuation School | Parth Verma |