Aditya Bir. Fas. Q1 FY27 Results (NSE: ABFRL)
Signal: Loss widened
The read
The revenue recovery remains operationally weak: consolidated revenue grew 10.6% YoY to ₹2025.56 Cr, but EBITDA fell 1.3% to ₹172.95 Cr, EBIT loss widened to ₹176.78 Cr and Ethnic and Others lost ₹188.54 Cr; the gross-margin expansion to 59.1% did not convert into earnings because employee costs rose 14.0% and finance costs rose 21.0%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,025.56 Cr | 10.6% | +1.8% |
| EBIT | ₹-176.78 Cr | -25.9% | N/A |
| Net profit | ₹-215.24 Cr | -1.5% | N/A |
| EPS | ₹-1.77 | -1.7% | N/A |
| EBIT margin | 8.5% |
P&L walk
Revenue increased 10.6% YoY to ₹2025.56 Cr, but EBITDA declined 1.3% to ₹172.95 Cr and EBIT loss widened 25.9% to ₹176.78 Cr as the Ethnic and Others segment generated a ₹188.54 Cr loss.
Segments
Ethnic and Others is the clear drag: its revenue grew 10.1% YoY to ₹830.79 Cr but segment loss widened to ₹188.54 Cr, while Pantaloons produced a ₹3.48 Cr profit versus a ₹3.67 Cr profit YoY.
Key positives
- Consolidated revenue increased 10.6% YoY to ₹2025.56 Cr, with Pantaloons revenue up 10.1% to ₹1204.39 Cr.
- Consolidated gross margin expanded approximately 408bps YoY to 59.1%, with material-related costs declining to 40.9% of revenue from 45.0%.
- Pantaloons remained profitable at ₹3.48 Cr despite a 12.6% sequential improvement from its prior-quarter loss of ₹26.44 Cr.
- The company reports excess liquid investment and cash over debt, although the absolute net cash balance is not disclosed.
Key concerns
- Consolidated EBITDA declined 1.3% YoY to ₹172.95 Cr despite 10.6% revenue growth, leaving EBITDA margin at 8.5%.
- Ethnic and Others generated a ₹188.54 Cr loss, worsening from ₹178.82 Cr YoY and ₹8.13 Cr in the prior quarter.
- Employee costs rose 14.0% YoY to ₹345.92 Cr and finance costs rose 21.0% YoY to ₹137.09 Cr, both outpacing revenue growth.
- Standalone PAT loss widened 77.5% YoY to ₹106.35 Cr, materially weaker than the consolidated loss of ₹215.24 Cr and highlighting the drag from subsidiaries and associates.
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