1. Opening Hook
When your wardrobe screams luxury but your P&L whispers “let’s keep it calm,” you’re probably Aditya Birla Lifestyle Brands. The quarter had it all — GST drama, early Pujo chaos, and an industry still wondering if the wedding season will finally swipe its card. Yet, management strutted down the earnings ramp with 12% EBITDA growth and a retail runway spanning 3,200+ stores.Margins tightened, suits sold, and Forever 21 was forever gone. It’s not flashy, but profitable slow fashion is in. Stick around — because the next few quarters might just redefine “outfit repeaters” in financial statements.
2. At a Glance
- Revenue up 4% YoY:Growth that’s more “business casual” than “festive couture.”
- EBITDA up 12%:Cost control is clearly the new black.
- EBITDA Margin 16.6% (+125 bps):Slimmer discounts, tighter stitches.
- PAT at ₹23 Cr (vs ₹59 Cr loss):Profit finally found its fitting room.
- Store Network: 3,250+ stores:Because more mirrors = more confidence.
- Lifestyle Brands up 7%:The OGs still pay the rent.
- Emerging Businesses down:Blame Forever 21 — it ghosted the base.
3. Management’s Key Commentary
“We delivered double-digit retail like-to-like growth.”(Translation: Same shirts, higher bills — that’s pricing power.)
“Lifestyle brands grew 7% YoY; EBITDA margin at 19.3%.”(Our suits are selling; our spreadsheets are tailored too.)
“Emerging businesses like Reebok, AE, and Innerwear showed 11% LTL growth.”(But Forever 21 exited faster than a Gen Z from Facebook.)
“EBITDA margin expanded 125 bps despite higher ad spends.”(Basically, influencers got paid — and it still worked.)
“Small-town India outperformed metros.”(Turns out tier-3 towns love blazers more than Bangalore techies.)
“We renovated 65 stores this quarter.”(Translation: 130 store-months of no sales, but prettier walls 😏)
“We’ll stay patient with innerwear — it’s habit-forming.”(In other words: still loss-making, but we’ll call it brand-building.)
4. Numbers Decoded
| Metric | Q2FY26 | Q2FY25 | YoY | Comment |
|---|---|---|---|---|
| Revenue | ₹2,038 Cr | ₹1,960 Cr | +4% | Weak base, GST drag |
| EBITDA | ₹338 Cr | ₹301 Cr | +12% | Cost discipline saves the day |
| EBITDA Margin | 16.6% | 15.3% | +125 bps | Rent leverage rocks |
| PAT | ₹23 Cr | (₹59 Cr) | NA | Back in black, finally |
| Lifestyle Revenue | ₹1,754 Cr | ₹1,640 Cr | +7% | Pujo + weddings = lift |
| Emerging Biz | ₹284 Cr | ₹320 Cr | -11% | Forever 21 breakup blues |
Note:Innerwear up 20% LTL at retail, still shy on profit. Reebok +10%, AE +9%. Forever 21? Dead weight removed.
5. Analyst Questions (Decoded)
- JM Financial:“Impact of Forever 21 exit?”Mgmt:“Growth would’ve been 1% higher.”(Translation: Not exactly forever, thankfully.)
- Morgan Stanley:“GST impact?”Mgmt:“Transition’s over; let’s see if suits still sell at 18% tax.”(GST is the new villain in fashion week.)
- Avendus Spark:“Consumer sentiment?”Mgmt:“Tier-3 towns vibing, metros meh.”(India Shining — but only up to district HQ level.)
- IIFL:“Why’s innerwear struggling?”Mgmt:“Because patience is the new elasticity.”(Also, athleisure costs more than confidence.)
6. Guidance & Outlook
Management expectsdouble-digit growth in H2, powered by festive + wedding demand and
