ABFRL trims Q4 losses as Pantaloons keeps fashion in vogue

MUMBAI: Fashion may be seasonal, but recovery stories never go out of style. Aditya Birla Fashion and Retail Limited (ABFRL) stitched together a stronger revenue performance in the fourth quarter of FY26, even as the company continued to battle losses amid aggressive expansion and investment-led growth. The fashion retailer reported a consolidated net loss of Rs 163.81 crore for the March quarter, a modest improvement from the Rs 170.64 crore loss recorded in the corresponding quarter last year. While profitability pressures lingered, the company’s revenue growth painted a far more upbeat picture, driven by strong momentum across Pantaloons, ethnic wear and digital commerce.

Revenue from operations rose 15.7 per cent year-on-year to Rs 1,990.13 crore in Q4 FY26, compared to Rs 1,719.48 crore in the same quarter last fiscal. For the full financial year, ABFRL clocked operating revenue of Rs 8,176.92 crore, underlining the company’s continued scale-up despite a challenging retail environment.

The star performer of the quarter was once again Pantaloons, which emerged as the company’s biggest growth engine. The value fashion chain delivered an 18.5 per cent jump in quarterly revenue to Rs 1,048.26 crore, while annual revenue from the business stood at Rs 4,560.49 crore. In a market where consumers continue balancing aspiration with affordability, Pantaloons appears to have found the sweet spot between value and trend-driven fashion.

ABFRL’s ethnic and other businesses division also added fresh sparkle to the quarter. Revenue from the segment climbed to Rs 950.21 crore from Rs 846.99 crore a year ago, signalling sustained consumer appetite for occasion wear and traditional fashion categories.

The company also reported a sharp improvement in operational performance, with EBITDA for the quarter rising 57 per cent year-on-year to Rs 311 crore. The numbers suggest ABFRL’s efforts around cost management, scale efficiencies and omnichannel integration are beginning to show results beneath the surface, even as headline losses remain elevated.

Digital commerce continued to flex its fashion muscles as well. ABFRL said its ecommerce business grew more than 30 per cent year-on-year, powered by stronger omni-channel capabilities and faster fulfilment infrastructure. In an increasingly convenience-driven retail market, the company appears to be betting heavily on blending physical stores with seamless online shopping experiences.

And the store expansion story is far from slowing down. ABFRL added more than 180 gross stores during FY26, with around 120 of those openings taking place in the second half of the year alone. The rapid retail footprint expansion reflects the company’s continued push to strengthen visibility across metros as well as emerging consumption markets.

Meanwhile, ABFRL’s ethnic menswear brand Tasva continued its upward march. The company increased its stake in subsidiary Indivinity Clothing Retail Private Limited which operates Tasva from 85.54 per cent to 89.29 per cent through a rights issue involving over 3.65 crore equity shares. Tasva itself delivered 33 per cent year-on-year sales growth during the quarter, aided by strong like-to-like growth and network expansion.

The quarter also brought a reshuffle at the top. In March 2026, ABFRL announced several senior leadership appointments, including Suraj Bahirwani as CEO (Designate) of Pantaloons, Marco Agnolin as CEO of OWND! and SMP, and Nikhil Modha as CFO (Designate) and SMP.

For the full year, however, the broader balance sheet still reflected the cost of transformation. ABFRL’s consolidated losses widened sharply to Rs 829.89 crore in FY26, up 82 per cent from Rs 455.82 crore in FY25. Yet, behind the red ink sits a company clearly leaning into scale, category expansion and digital acceleration hoping today’s investments become tomorrow’s wardrobe essentials for Indian consumers.