Aditya Birla Fashion and Retail Limited — Q2 FY26
ABFRL reported Q2 FY26 revenue of ₹1,908 crore, up 13% YoY, driven by strong like-to-like growth across segments.
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✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
71%Questions answered1Evaded / deflected12Questions auditedMixedNumbers vs filing
Answered
High priority
Cash consumption in H1 and need for additional capital
Asked by Devanshu Bansal, Emkay Global
Management gave specific cash figures and corrected the analyst's estimate.
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Question
Have we consumed about INR 900 crore of cash in first half from the balance sheet and this ballpark correct?
Ashish Dikshit, Managing Director
No Devanshu, we started my March cash was roughly INR 2,072 crore in ABFRL standalone which is today INR 1,600 crore. So roughly INR 500 odd crore.
Answered
High priority
Need for additional capital in ABFRL
Asked by Devanshu Bansal, Emkay Global
Management explained seasonality and stated no concern, though no explicit yes/no on capital raise.
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Question
At this run rate, do you think that we would need to raise additional capital going ahead in ABFRL?
Jagdish Bajaj, CFO
First half is when most of the inventory buildup happens. Second half cash collection is dramatically higher. At this point of time there's no cause of concern on that account.
Partial answer
High priority
Like-to-like growth for Pantaloons adjusting for festival preponement
Asked by Devanshu Bansal, Emkay Global
Management acknowledged the benefit but did not quantify the L2L growth, citing external disruptions.
no specific L2L number givenqualitative explanation only
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Question
I was checking if you could help me understand the underlying like-to-like L2L for Pantaloons because there must be some benefit of festive preponement to this quarter.
Sangeeta Tanwani, Director and CEO of Pantaloons Segment
Yes, there was a benefit with this being advanced. Unfortunately, the last seven or eight days that we saw a terrific amount of rain there and the disruption in Assam, a lot of that growth got wiped out.
Partial answer
High priority
Pantaloons margin drop despite good L2L and store closures
Asked by Devanshu Bansal, Emkay Global
Management explained the reason but did not provide the requested like-for-like margin comparison.
no like-for-like margin comparison givenattributed to marketing spend without quantifying margin impact
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Question
There is still a margin drop in Pantaloons. On a like-for-like for Pantaloons, can you help us understand what has been the margin performance this quarter versus last quarter?
Sangeeta Tanwani, Director and CEO of Pantaloons Segment
The margin impact has also been because of the significantly higher marketing investments versus last year. In terms of percentage, we have doubled our marketing investments.
Answered
High priority
TCNS overall growth and outlook
Asked by Devanshu Bansal, Emkay Global
Management explained the accounting change and provided comparable revenue figures, addressing the discrepancy.
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Question
While the L2L you reported very encouraging 19% but basic calculation shows a 15% decline in H1. Can you help us better understand if the calculation is right and what is the outlook ahead?
Jagdish Bajaj, CFO
We reported revenue last year was INR 254 crore approximately. The comparable of that would have been lower by INR 40 crore. Against that, there is a double-digit growth in TCNS, around INR 240 crore this quarter.
Answered
Medium priority
CapEx for H2 and store expansion plans
Asked by Gaurav Jogani, JM Financial
Management gave a specific CapEx range for H2.
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Question
What should be the CapEx for the H2 part of the business?
Ashish Dikshit, Managing Director
CapEx primarily will be in on around 30 stores and that's why around 30 stores. I don't think more than INR 100-220-25 crore will be spent on capex in these two businesses.
Partial answer
Medium priority
Profitability split of Ethnic business excluding TCNS losses
Asked by Gaurav Jogani, JM Financial
Management described the loss-making entities but did not quantify the profitability of the rest.
no specific profitability numbers givenqualitative only
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Question
What kind of profitability are we making in the other parts of the Ethnic piece of business?
Jagdish Bajaj, CFO
We have very marginal losses in TCNS now. Most of the losses are TASVA and some of the other smaller designer businesses. On an annual level, TCNS losses are significantly coming down. TASVA still has losses and rest of the business is profitable.
Partial answer
Medium priority
Sustainability of Pantaloons L2L growth and store performance divergence
Asked by Archana Menon, Morgan Stanley
Management expressed confidence but did not provide quantitative evidence or divergence data.
no specific numbers on store performance divergencedeferred conclusion
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Question
How do you think of this in terms of how it can sustain? Do you see a performance divergence between stores which have been renovated or the new stores versus the earlier ones?
Sangeeta Tanwani, Director and CEO of Pantaloons Segment
We feel pretty confident given the performance of the second half that we will continue to sustain our growth. On the stores, it's still early days, just been two, three months. We'd wait for another six odd months to kind of come to a conclusion.
Answered
High priority
Pantaloons full-year margin outlook with marketing spend
Asked by Archana Menon, Morgan Stanley
Management reiterated the previously guided margin range.
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Question
How should we be thinking of that for the full year versus last year when we also factored in the marketing as well as some losses from home?
Ashish Dikshit, Managing Director
We indicated when we met investors in the month of April that this segment margin should be in a range of around 15-17%. We will aspire to go to, you know, we like to maintain that.
Evasive
Medium priority
Brand perception gap leading to Pantaloons revamp
Asked by Tejash Shah, Avendus Spark Institutional Equities
Management avoided stating any gap or negative feedback, instead framing it as a strategic evolution.
denied a gap existedreframed as a journeyno specific feedback given
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Question
What was the gap or feedback that we found in the study that led us to do this massive revamp?
Sangeeta Tanwani, Director and CEO of Pantaloons Segment
It was not a question of lacking. It was a question of where we have been on the journey with Pantaloons. The insights that we got with the sharp definition of the consumer segment allowed us to identify white spaces in terms of positioning.
Partial answer
Medium priority
Store economics with new Pantaloons identity
Asked by Tejash Shah, Avendus Spark Institutional Equities
Management provided margin targets but did not address revenue per sq ft or inventory turns as asked.
no specific revenue per sq ft or inventory turns givenqualitative targets only
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Question
How should I think about store economics with this new identity? Revenue per sq ft, inventory turns, gross margin.
Jagdish Bajaj, CFO
Pantaloons margins are closer to 50%, not 25%. We would like it to be north of 50% gross margin. The business is operating in negative working capital. Store profitability needs to be closer to 25%.
Answered
High priority
TMRW losses increase and use of raised capital
Asked by Kunal Shah, Jefferies
Management acknowledged the higher losses and explained the cause.
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Question
The losses in that business have gone up in the last two quarters. Anything to read or there's some bit of seasonality here as well?
Jagdish Bajaj, CFO
The losses are a little higher than what we would have liked. We have been trying to push higher growth rate. The revenue to advertising spend has been slightly adverse. That is a journey that we'll go through.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| TCNS revenue last year INR 254 crore, comparable lower by INR 40 crore | ₹254 cr | ₹1,982 cr | Understated vs filing |
| TCNS revenue this quarter around INR 240 crore | ₹240 cr | ₹1,982 cr | Understated vs filing |
| TCNS like-to-like growth 13% for similar accounting | 13% | 13% | Matches filing |
| Pantaloons segment margin guided 15-17% | 15% | 3% | Overstated vs filing |
| Pantaloons gross margin aspiration north of 50%, currently just short | 50% | 3% | Overstated vs filing |
| Luxury retail segment grew 13% this quarter | 13% | 13% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.