Nuvama Institutional Equities has recommended a ‘Buy’ rating on Aditya Birla Lifestyle Brands (ABLBL). The brokerage has a target price of Rs 162 on the stock, implying an upside of 23%. ABLBL reported a 3% revenue growth in the first quarter of FY26, while EBITDA decreased by 2% and profit before tax by 15%, which were affected by a 19% drop in Lifestyle Brand’s e-commerce channel, modest 6% wholesale growth, retail store closures, and the exit of Forever21.
Nuvama on Aditya Birla Lifestyle Brands: Retail LTL grew
On a positive note, Lifestyle Brands’ retail LTL (Like-to-like) expanded 15% while Reebok scaled up well. Also, the company’s management expects low double-digit growth in core Lifestyle brands through LFL (Like-for-like) gains and store expansion, with Youth and Innerwear likely to grow strongly.
“We are forecasting FY25–28E revenue/EBITDA CAGR of 8.7%/9.7%, valuing the business at 25x Q1FY28 EV/EBITDA,” said Nuvama in a research note.
Nuuvma on Aditya Birla Lifestyle Brands: Retail leads growth, e-commerce a drag
In absolute terms, Lifestyle Brand’s revenue was Rs 1,488 crore and delivered a fourth consecutive quarter of strong positive LTL (Like-to-like). The e-commerce channel contracted 19% YoY due to focus on profitable growth, whereas the wholesale channel posted 6% growth due to one-off effects of partner consolidation.
However, youth brands and innerwear revenue inched down 2% YoY to Rs 320 crore, affected by the closure of Forever 21. The company expects to break even by FY27 and posted 10% LTL growth.
EBITDA margins logged a drop of 77 basis points YoY to 14.3%. EBITDA margins were hurt by 280 bps on the back of higher brand investments and amplified brand-building efforts across brands during IPL.
Aditya Birla Lifestyle Brands Q1 results
The Aditya Birla Group’s lifestyle company posted a 4.92% increase in its consolidated net profit to Rs 24.06 crore for the first quarter of FY26. It posted a net profit of Rs 22.93 crore in the April-June period a year ago, which was formed after the demerging of the business of Madura Fashion and Lifestyle. This is the first quarter result of ABLBL, which was listed on the bourses on June 23, 2025, following the demerger.