ABLBL profit falls 46.77% QoQ as operating margin narrows
Revenue fell 5.91% sequentially, while costs declined more slowly and other income accounted for 47.13% of pre-tax profit.
Filed 01 Aug 2026, 19:05 IST · after market close · Aditya Birla Lifestyle Brands Ltd (ABLBL)
Key takeaways
- Consolidated net profit fell 46.77% sequentially to Rs 29.02 cr as operating margin narrowed 1.15 percentage points.
- Expenses declined 4.62% sequentially, slower than the 5.91% revenue drop, while the tax rate rose 3.32 percentage points.
- Other income contributed 47.13% of profit before tax, limiting the quality of the Rs 29.02 cr consolidated profit.
Price around the results
Sequential slowdown cuts operating profit
Aditya Birla Lifestyle Brands reported consolidated revenue of Rs 2,045.74 cr in Q1FY27, down 5.91% from Q4FY26, and operating profit fell 12.56%. The sharper decline in operating profit than revenue pushed operating margin down 1.15 percentage points to 15.06%. Profit before tax fell 44.38% and net profit declined 46.77% sequentially.
Costs outpaced revenue on the way down
Expenses declined 4.62% sequentially, less than the 5.91% fall in revenue, so operating margin narrowed despite lower interest and depreciation costs. The tax rate increased 3.32 percentage points to 25.91%, adding to the pressure on net profit. Other income rose 26.18% and represented 47.13% of profit before tax, making reported earnings less reflective of operating performance.
Margin remains above the consumer discretionary median
ABLBL's 15.06% operating margin was 0.52 percentage points above the 14.54% median for the 54 Consumer Discretionary peers that had reported the quarter. The sequential decline from 16.21% marks a weaker quarter, although the available trend shows only one prior quarter and does not establish a longer run of deterioration.
Management points to sentiment and wholesale pressure
Management said inflation continued to affect consumer sentiment, while the presentation said lower primary sales affected wholesale performance. The company said it used hyperlocal activation and a broader product catalogue to support its own e-commerce business. It also highlighted Crafted Knits and other brand-level launches as additions intended to broaden the portfolio and reach new customer segments.
Results were filed after market close
The consolidated results were filed after market close on 1 August 2026. The release therefore does not include a trading-session reaction to place against the stock's past results history.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹2,046 cr | ₹2,174 cr | -5.91% |
| Other income | ₹18 cr | ₹15 cr | +26.18% |
| Expenses | ₹1,738 cr | ₹1,822 cr | -4.62% |
| Operating profit | ₹308 cr | ₹352 cr | -12.56% |
| Operating margin (%) | 15.06% | 16.21% | — |
| Interest | ₹83 cr | ₹86 cr | -3.52% |
| Depreciation | ₹204 cr | ₹210 cr | -2.92% |
| Profit before tax | ₹39 cr | ₹70 cr | -44.38% |
| Tax | ₹10 cr | ₹16 cr | -36.20% |
| Net profit | ₹29 cr | ₹55 cr | -46.77% |
| EPS (₹) | ₹0.24 | ₹0.45 | -46.67% |
Operating margin of 15.06% compares with a Consumer Discretionary sector median of 14.54% across 54 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New products
- The company introduced Crafted Knits, a premium flat-knit offering across silhouettes and textures.
- New product launches across brands broadened the portfolio and attracted new customer segments.
New initiatives
- The company used hyperlocal activation and an enhanced product catalogue to support its own e-commerce business.
Problems & risks
- Inflation affected consumer sentiments.
- Wholesale performance was impacted by lower primary sales.
What to watch
- Whether operating margin recovers from 15.06% after the sequential decline of 1.15 percentage points.
- Whether other income remains a large contributor after accounting for 47.13% of profit before tax.
- Whether revenue momentum improves from the 5.91% sequential decline as wholesale and e-commerce initiatives develop.