Aditya Birla Fashion and Retail: Ambitious Plans to Triple Revenue by 2030

Aditya Birla Fashion and Retail Limited (ABFRL), part of the Aditya Birla Group, is one of India’s largest apparel retail companies. With a diverse portfolio spanning mass and value retail, luxury fashion, ethnic wear, and digital-first brands, the company has announced an aggressive growth strategy for the next five years.

A Diverse Brand Portfolio Driving Growth

ABFRL operates across multiple segments of the fashion market:

• Mass & Value Retail: Pantaloons, StyleUp
• Luxury Fashion: The Collective
• Ethnic Wear: Sabyasachi, Shantanu & Nikhil, House of Masaba, Tarun Tahiliani, Tasva, Jaypore
• Digital-First Brands: TMRW

Expansive Store Network

The company’s reach is strengthened by its widespread retail presence:

• 451 stores in the mass and value segment
• 659 ethnic brand stores
• 41 luxury retail stores
• 16 TMRW brand stores

This footprint allows ABFRL to serve a wide spectrum of customers, from budget-conscious shoppers to luxury fashion enthusiasts.

Shifting Shareholding Pattern

According to recent data:

• Foreign Institutional Investors (FIIs): 17.6%, down from 22.2% in the previous quarter
• Domestic Institutional Investors (DIIs): 12.1%, a decline of 251 basis points
• Public Shareholders: 23.3%, up from 16.3%

The increase in public shareholding suggests rising retail investor interest, even as institutional stakes have decreased.

Strong Revenue Growth but Profitability Challenges

In the latest financial results, ABFRL reported:

• Revenue: ₹73.6 billion, up 14% year-on-year
• Loss After Tax: ₹6.2 billion, a 31% improvement from the previous year

Revenue Breakdown by Segment

• Pantaloons: 59%
• Ethnic Wear: 26%
• TMRW: 9%
• Others: 7%

While the revenue growth is encouraging, losses are still being driven by negative margins in emerging businesses like TMRW and some ethnic wear brands.

Five-Year Growth and Profitability Targets

ABFRL has set ambitious targets for the next five years:

• Revenue Goal: Triple the current revenue
• Margin Goal: Double operating margins from 9% to 18%
• Profitability Plan: Turn all loss-making divisions — including TCNS Clothing, Tasva, and TMRW — into profitable businesses

Timeline for Profitability

• Ethnic wear brands and Tasva: Expected to be profitable by FY27
• TMRW: Target profitability by FY28

Cash Reserves to Fund Expansion

The company currently holds ₹23.5 billion in cash, which will be used to expand store networks, invest in technology, and strengthen brand visibility. This strong liquidity position gives ABFRL the flexibility to pursue its growth ambitions without excessive debt pressure.

Strategic Outlook for Investors

With a robust brand portfolio, wide retail reach, and a clear profitability roadmap, Aditya Birla Fashion and Retail appears well-positioned to capture growth in India’s fast-expanding fashion retail sector. However, the company’s ability to turn loss-making segments around will be key to achieving its 2030 goals.

Key Takeaways

• Diverse fashion portfolio catering to multiple customer segments
• Aggressive five-year growth plan: triple revenue, double margins
• Significant cash reserves for expansion
• Profitability in all divisions targeted by FY27–FY28
• Rising public shareholding amid declining institutional stakes

Company Overview

• Parent Group: Aditya Birla Group
• Segments:
  • Mass & Value Retail: Pantaloons, StyleUp
  • Luxury Retail: The Collective
  • Ethnic Brands: Sabyasachi, Shantanu Nikhil, Masaba, Tarun Tahiliani, Tasva, Jaypore
  • Digital-First Brands: TMRW
• Store Count:
  • Mass & Value: 451 stores
  • Ethnic: 659 stores
  • Luxury: 41 stores
  • TMRW brands: 16 stores

Shareholding Pattern (Recent Change)

• FIIs: 17.6% (↓ from 22.2%)
• DIIs: 12.1% (↓ 251 bps)
• Public: 23.3% (↑ from 16.3%)

Financial Performance

• Revenue: ₹73.6 bn (+14% YoY)
• Loss After Tax (PAT): ₹6.2 bn (↓ 31%)
• Revenue Mix:
  • Pantaloons: 59%
  • Ethnic: 26%
  • TMRW: 9%
  • Others: 7%
• Margins: Current 9%, target 18% in 5 years
• Loss Drivers: Negative margins in emerging TMRW and certain ethnic brands

Growth Plan

• Goal:
  • Triple revenue in 5 years
  • Double margins from 9% → 18%
• Profitability Targets:
  • Ethnic brands (TCNS, Tasva) and TMRW to be turned profitable
  • All businesses profitable by FY27, except TMRW (FY28)
• Expansion Capability:
  • Cash reserves of ₹23.5 bn

    (Disclaimer: This article is for informational and educational purposes only. It does not constitute financial advice or a recommendation to buy or sell any securities. Please consult with a qualified financial advisor before making any investment decisions.)