1. Opening Hook
Fresh off a festive season where shoppers blamed rains, roads, planets, and maybe even their exes for not buying enough clothes, ABFRL walked into Q2FY26 with swagger — and a ₹295 crore loss. But fear not, management insists this is just “seasonality,” not “seriously-ality.”
Between launching a 90,000 sq. ft. luxury temple with Galeries Lafayette and a Gen Z brand namedOWND!(because vowels are optional now), ABFRL seems determined to prove it can do everything, everywhere, all at once.
Stick around — because the real plot twist lands when they explain why Pantaloons looks premium but margins look anaemic. This getsmuchmore fun.
2. At a Glance
- Revenue – ₹1,982 Cr, up 13%– Management says it’s pure growth. Excel sheets deny involvement.
- EBITDA – up 7%– The sidekick arrived but refused to sprint.
- EBITDA margin – 5.9%, down 30 bps– Blame marketing, brand building, and possibly astrology.
- PAT – ₹295 Crloss– Profits said “BRB,” never came back.
- Ethnic L2L – 20%+– Weddings never disappoint. Bank accounts do.
- Pantaloons L2L – 7%– Footfalls up. Rains said “not so fast.”
- OWND! revenue – up 43%– Gen Z buying fast fashion faster than we can spell it.
- Cash – ₹2,150 Cr– But approx ₹600 Cr evaporated. Management: “Chill, H2 fixes everything.”
3. Management’s Key Commentary
Quote:“Demand environment remained cautious across categories.”(Translation: Customers browsed, touched, tried… but didn’t buy.)
Quote:“Early onset of Pujo helped boost footfalls.”(Translation: Thank you, Bengal, for saving the quarter — until rains destroyed everything.) ☔😏)
Quote:“Pantaloons profitability is higher at store level.”(Translation: Headquarters burned the money on marketing instead.)
Quote:“OWND! is gaining strong traction with Gen Z.”(Translation: Teenagers love it. Their parents paying the bills… less so.)
Quote:“Ethnic business saw a 200 bps EBITDA margin expansion.”(Translation: Weddings remain India’s favourite stimulus package.)
Quote:“TCNS margin improved by nearly 900 bps.”(Translation: We finally fixed the problem child — mostly.)
Quote:“Luxury margins look choppy because Galeries Lafayette expenses started.”(Translation: Store not open. Costs very open. Earnings not happy.) 😬)
4. Numbers Decoded
+-------------------------------+-------------------+
| Metric | Q2FY26 |
+-------------------------------+-------------------+
| Revenue | ₹1,982 Cr |
| Revenue Growth | 13% YoY |
| EBITDA | ₹117 Cr (approx) |
| EBITDA Margin | 5.9% |
| PAT | -₹295 Cr |
| Pantaloons Revenue | ₹1,142 Cr |
| Pantaloons L2L | 7% |
| Ethnic Revenue | ₹505 Cr |
| Ethnic L2L | 20%+ |
| OWND! Revenue Growth | 43% YoY |
| Stores Added (Q2) | 30+ total |
| Consolidated Cash | ₹2,150 Cr |
+-------------------------------+-------------------+Side note:Tasva continues its cosmic journey of high growth + high losses. Ethnic revenues in H2 will be 70% of the year — aka the “Shaadi Ka Season Saves Us” model.
5. Analyst Questions (and the Translation)
Q:“Have you burned ₹900 Cr cash?”Mgmt:“No no… only ₹600 Cr.”(Translation: Don’t worry. Arre yaar.)
Q:“Pantaloons margins dipped despite L2L growth?”Mgmt:“Marketing doubled.”(Translation: We spent money to tell you we improved stores. Believe us.)
Q:“Is ethnic profit front-loaded?”Mgmt:“Absolutely not. H2 is where all the profits are.”(Translation: Trust the weddings.)
Q:“Why luxury margins dropped from 40%+ to 25%?”Mgmt:“Galeries Lafayette bills started.”(Translation: The rent is due. The sales aren’t.)
Q:“TMRW losses rising — why?”Mgmt:“We spent
