ABFRL reports Rs 376.41 cr loss as operating profit nearly vanishes
A 0.65% operating margin lagged the sector median by 10.95 percentage points as management cited festive timing and expansion-related operating leverage.
Filed 05 Nov 2026, 17:27 IST · after market close · Aditya Birla Fashion & Retail Ltd (ABFRL)
Key takeaways
- On a consolidated basis, ABFRL reported a Rs 376.41 cr net loss after interest of Rs 151.70 cr and depreciation of Rs 369.37 cr outweighed operating profit of Rs 13.29 cr.
- The 0.65% operating margin was 10.95 percentage points below the 11.60% median for 237 Consumer Discretionary peers, placing ABFRL 26th from the bottom.
- Management attributed the pressure to late festive timing and negative operating leverage, while the company added more than 80 stores in H1.
Price around the results
A thin operating surplus turned into a deep loss
On a consolidated basis, Rs 2,016.74 cr of expenses left ABFRL with only Rs 13.29 cr of operating profit on Rs 2,030.03 cr of revenue. Interest of Rs 151.70 cr and depreciation of Rs 369.37 cr then pushed profit before tax to a Rs 454.49 cr loss. Other income of Rs 53.29 cr did not offset these costs, while the negative tax charge of Rs 78.08 cr reduced the reported net loss to Rs 376.41 cr.
Operating margin trails the consumer discretionary sector
ABFRL's 0.65% operating margin was 10.95 percentage points below the 11.60% median among 237 reported Consumer Discretionary peers. That placed the company 26th from the bottom, showing that the quarter's operating weakness was pronounced even within its sector.
Festive timing and store expansion shaped Q2
Management said late festive timing affected year-on-year growth, while the shift of Pujo to Q3 weighed particularly on the East region and Pantaloons. The company also said the festive shift caused negative operating leverage as newer businesses scaled. ABFRL added 35 gross stores in Q2 and more than 80 in H1; management said TMRW added more than 15 stores in Q2 and now has over 150 exclusive brand stores. Management said Pantaloons' e-commerce business grew 19% year on year and OWND grew 58%, while its premium ethnic portfolio was geared for the upcoming festive and wedding season.
The filing came after market close
The results were filed after market close on 5 Nov 2026. The market response should therefore be assessed from the next trading session rather than the filing day.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹2,030 cr |
| Other income | ₹53 cr |
| Expenses | ₹2,017 cr |
| Operating profit | ₹13 cr |
| Operating margin (%) | 0.65% |
| Interest | ₹152 cr |
| Depreciation | ₹369 cr |
| Profit before tax | ₹-454 cr |
| Tax | ₹-78 cr |
| Net profit | ₹-376 cr |
| EPS (₹) | ₹-2.82 |
Operating margin of 0.65% compares with a Consumer Discretionary sector median of 11.60% across 237 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Pantaloons' e-commerce business grew 19% year on year in Q2.
- OWND grew 58% year on year in the quarter and became available at 90 stores.
Guidance & outlook
- The premium ethnic portfolio is geared for the upcoming festive and wedding season.
Expansion
- The company added 35 gross stores across brands, led by TMRW, TCNS, and the masstige and value segment.
- The company added more than 80 new stores in the first half.
- TMRW added more than 15 new stores in Q2 and now has over 150 exclusive brand stores.
New products
- TIGC elevated its winterwear offering and Nobero introduced travel polos.
New initiatives
- Pantaloons is elevating its social media presence through trend-led, editorial storytelling.
- TMRW brands expanded into adjacent categories and elevated their product offerings.
Problems & risks
- Late festive timing affected year-on-year growth.
- Festive timing led to negative operating leverage, while newer businesses were scaling up.
- The shift of Pujo to Q3 primarily affected the East and overall Pantaloons performance.
What to watch
- Whether operating margin improves from 0.65% after the festive timing shift.
- Store additions against the 35 gross stores added in Q2 and more than 80 added in H1.
- Whether Pantaloons' e-commerce growth and OWND growth remain at 19% and 58% year on year, respectively.