The report says that this will be supported by its omnichannel presence and focus on profitable, consumer-led expansion
As Aditya Birla Fashion and Retail or ABFRL’s consolidated revenue grew on strong traction in ethnic and TMRW, Axis Securities has stated that with an early festive season, ABFRL is well-positioned to capture growth.
This will be supported by its omnichannel presence and focus on profitable, consumer-led expansion. Short-term challenges persist; meanwhile, post-demerger, near-term execution will be crucial to unlocking value. Axis Securities maintains a cautious stance and reiterate its hold rating.
The company’s capex for the current financial year is guided at around Rs 500 crore, including one-time investment for the gallery refined store slated to open by year-end. Excluding this one-time outlay, recurring capex across businesses is expected at around Rs 300 crore, as per the report.
“Its strategy of expanding the product lineup through new launches and acquisitions, strengthening brand positioning, and driving digital transformation to increase online sales, including next-generation, digital-first brands under the technology-driven ‘house of D2C brands’ venture, TMRW, should support long-term growth,” the report added.
Ecommerce sales grew 32 per cent YoY, supported by impactful digital campaigns, while Pantaloons continued to enhance consumer engagement through refreshed retail identity, curated assortments, and an integrated omnichannel experience. Pantaloon’s retail network now stands at 405 stores.
ABFRL’s ethnic portfolio delivered strong growth in Q1, led by designer brands and premium ethnic wear. Luxury retail, comprising The Collective and mono brands, posted modest single-digit YoY growth in a weak demand environment while sustaining double-digit profitability, the report highlighted.
