Aditya Birla Fashion and Retail (ABFRL) saw consolidated net loss widen to Rs 152 crore in the December quarter (Q3FY26) on implementation of the new labour code. The net loss booked in Q3 was higher than analysts’ estimates of Rs 121 in terms of net loss for the period. A year ago, the company had reported a net loss of Rs 51 crore.
Labour Code Costs
Despite the challenges on the bottomline front, Q3 consolidated revenue was up 8% year-on-year to Rs 2,374 crore and in line with street estimates of Rs 2,385 crore for the period amid a wedding, festive and GST 2.0-led uptick in spending. Consolidated earnings before interest tax depreciation and amortisation (Ebitda) saw a marginal growth of 2.3% year-on-year to Rs 309 crore in the third quarter, which is ahead of street estimates of Rs 272 crore for the period. The company pointed to financial discipline and operational efficiencies for staying positive on the Ebitda front.
Ebitda margins though were flat for the third quarter at 13% versus 13.7% reported last year. Analysts had also forecast operating margins to remain in the 13% region in the third quarter. Rivals such as Trent have reported higher Ebitda margins of 20.2% in Q3 amid fiscal prudence measures.
Wedding Bells & Digital Shifts
For the nine months ended December 31, 2025, ABFRL’s revenue grew 10% year-on-year to Rs 6,187 crores, while Ebitda grew 17% to Rs 655 crores with margin improvement of 70 basis points to 10.6%.
Ethnic businesses led growth in Q3 with 20% YoY expansion due to the wedding season. While new businesses including TMRW (+29%) and luxury retail (+27%) showed strong momentum, supported by retail network expansion of 50 stores, bringing total retail space to over 7.7 million square feet. The e-commerce channel sustained momentum with over 15% year-on-year growth, enabled by stronger omni-channel capabilities and faster fulfillment, the company said.