Aditya Birla Fashion and Retail Limited (ABFRL) AI Stock Analysis

• Market Cap: ₹100.32B
• Dividend Yield: N/A
• Average Volume (3M): 886.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -19.17%
• EPS Growth: 37.41%
• Country: IN
• Employees: 26,965
• Sector: Consumer Cyclical
• Sector Strength: 80
• Industry: Apparel - Manufacturers
• EPS (TTM): -1.90
• Shares Outstanding: 1,220,266,700
• 10 Day Avg. Volume: 1,985,556
• 30 Day Avg. Volume: 886,766
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹70.00
• Price Target Upside: -15.18% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: ₹83.00 ▲(0.57% Upside)

The overall stock score of 54 reflects a balance of mixed financial performance and positive technical indicators. While the company shows operational improvements, ongoing losses and revenue volatility are significant concerns. The stock's technical strength provides some optimism, but the negative P/E ratio and lack of dividend yield weigh heavily on its valuation.

Positive Factors

Capital Investment

ABFRL's QIP of Rs 42 Bn is a positive, as the freed-up cash can bring growth and hopefully profitably.

Legacy Brands

AB Lifestyle Brands has strong legacy brands like Louis Philippe, Van Heusen, Allen Solly, Peter England, and Reebok.

Negative Factors

Demerger Challenges

The demerger creates challenges such as product and target customer overlap, leading to competition among the brands.

Growth Forecast

Aditya Birla Fashion and Retail Limited suffers from a lack of growth with a forecasted growth of 0%.

Strategic Concerns

This value unlock requires belief in the management's strategic choices and capital allocation discipline, preferring to wait for more evidence.

Aditya Birla Fashion and Retail Limited Business Overview & Revenue Model

Company Description

Aditya Birla Fashion and Retail Limited (ABFRL) is a leading player in the Indian fashion and retail sector, operating a diverse portfolio of brands catering to various market segments. The company encompasses a range of fashion formats, including branded apparel, footwear, and accessories, through both exclusive brand outlets and multi-brand outlets. Some of its prominent brands include Louis Philippe, Van Heusen, Allen Solly, and Pantaloons, which cater to different consumer needs from formal and casual wear to ethnic and fast fashion.

How the Company Makes Money

ABFRL generates revenue through a multi-channel retail strategy, leveraging both physical stores and e-commerce platforms to reach a broad customer base. The company's key revenue streams include sales from its extensive network of branded outlets, department stores, and partnerships with third-party online retailers. Additionally, ABFRL benefits from economies of scale in sourcing and supply chain management, which help in optimizing costs and improving margins. Strategic collaborations, such as exclusive partnerships and licensing agreements with global brands, also contribute significantly to its earnings. The company continuously invests in expanding its brand portfolio and retail network to enhance its market presence and capture a larger share of the growing Indian fashion market.

Aditya Birla Fashion and Retail Limited Financial Statement Overview

Summary

Aditya Birla Fashion and Retail Limited shows a mixed financial picture. While recent improvements in operational margins and cash flow generation are promising, consistent losses and revenue volatility pose challenges. The company maintains a balanced debt profile, but fluctuating equity levels suggest potential financial instability.

Income Statement

Aditya Birla Fashion and Retail Limited shows volatility in its income statement with a positive gross profit margin of 56.8% for 2025. However, the company has been struggling with profitability, as evidenced by negative net profit margins over the years, with -5.1% in 2025. Revenue growth has been inconsistent, with a decrease from 2024 to 2025. The EBIT margin improved to 38.5% in 2025, indicating some operational efficiency gains.

Balance Sheet

The balance sheet reveals a stable equity position with an equity ratio of 40.9% in 2025. The debt-to-equity ratio is favorable at 0.74, indicating a sound balance between debt and equity. However, the company has shown fluctuating stockholders' equity over the years, potentially pointing to financial instability.

Cash Flow

The cash flow statement highlights a healthy operating cash flow to net income ratio, indicating good cash generation relative to reported losses. Free cash flow has grown significantly in recent years, with a growth rate of 69.8% from 2024 to 2025. However, the company has experienced periods of negative free cash flow in past years, reflecting challenges in maintaining consistent cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	130.96B	73.55B	139.30B	124.18B	80.93B	52.13B
Gross Profit	66.84B	41.78B	33.96B	68.66B	43.49B	26.30B
EBITDA	18.77B	13.17B	17.00B	16.16B	12.37B	6.53B
Net Income	-4.16B	-3.76B	-6.28B	-360.00M	-1.09B	-6.73B
Balance Sheet
Total Assets	166.40B	166.40B	224.11B	170.41B	124.07B	101.71B
Cash, Cash Equivalents and Short-Term Investments	23.67B	23.67B	13.35B	9.55B	7.26B	7.88B
Total Debt	50.17B	50.17B	94.51B	65.73B	41.00B	35.99B
Total Liabilities	98.26B	98.26B	176.90B	136.95B	96.18B	74.95B
Stockholders Equity	68.12B	68.12B	40.34B	33.43B	27.73B	26.44B
Cash Flow
Free Cash Flow	0.00	10.09B	5.94B	-451.20M	6.03B	9.43B
Operating Cash Flow	0.00	16.44B	13.41B	6.36B	9.51B	11.04B
Investing Cash Flow	0.00	-16.12B	-29.92B	-3.87B	-5.51B	-8.55B
Financing Cash Flow	0.00	3.34B	14.12B	3.25B	-5.27B	-2.69B

Aditya Birla Fashion and Retail Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 82.53
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ABFRL, the sentiment is Positive. The current price of 82.53 is above the 20-day moving average (MA) of 76.20, above the 50-day MA of 75.92, and below the 200-day MA of 91.14, indicating a neutral trend. The MACD of 1.12 indicates Negative momentum. The RSI at 68.30 is Neutral, neither overbought nor oversold. The STOCH value of 88.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:ABFRL.

Aditya Birla Fashion and Retail Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KKCL	71 Outperform	₹32.23B	11.70		0.39%	30.23%	83.60%
RESPONIND	68 Neutral	₹52.64B	26.84		0.05%	25.62%	10.48%
ARVINDFASN	65 Neutral	₹70.19B	76.09		0.30%	7.62%	-124.65%
Sector *	61 Neutral	$17.75B	12.56	-5.49%	3.02%	1.43%	-14.12%
ABFRL	54 Neutral	₹100.32B	―		―	-19.17%	37.41%
RAJESHEXPO	―	₹52.22B	54.97		―	―	―
RAYMONDLSL	―	₹70.33B	169.02		―	―	―

Aditya Birla Fashion and Retail Limited Corporate Events

Aditya Birla Fashion and Retail Opens Special Window for Share Transfer Requests

Aditya Birla Fashion and Retail Limited has announced a special window for the re-lodgement of transfer requests for physical shares, in line with a SEBI circular. This initiative, running from July 7, 2025, to January 6, 2026, aims to assist shareholders who missed previous deadlines by allowing them to transfer their securities in demat mode, thereby enhancing investor rights and facilitating ease of investment.