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

• Market Cap: ₹99.65B
• Dividend Yield: N/A
• Average Volume (3M): 465.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: -19.17%
• EPS Growth: 37.41%
• Country: IN
• Employees: 26,965
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): -1.90
• Shares Outstanding: 1,220,266,700
• 10 Day Avg. Volume: 213,745
• 30 Day Avg. Volume: 465,145
• PEG Ratio: 2.34
• Price to Book (P/B): 2.79
• Price to Sales (P/S): 2.58
• P/FCF Ratio: 18.81
• 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: ₹90.33
• Price Target Upside: 9.66% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 53 Neutral
• Price Target: ₹87.00 ▲(5.62% Upside)

Aditya Birla Fashion and Retail Limited's overall stock score is driven by a mixed financial performance, with improvements in operational margins and cash flow but ongoing profitability challenges. Technical analysis suggests neutral momentum, while valuation concerns persist due to negative earnings and lack of dividends. The absence of earnings call data and corporate events limits further insights.

Positive Factors

Operational Efficiency

The improvement in EBIT margin indicates enhanced operational efficiency, which can lead to better profitability and competitive positioning over time.

Cash Flow Generation

Strong growth in free cash flow suggests robust cash generation capabilities, providing the company with flexibility to invest in growth opportunities and manage debt.

Balanced Debt Profile

A favorable debt-to-equity ratio indicates a sound balance between debt and equity, reducing financial risk and enhancing long-term stability.

Negative Factors

Revenue Volatility

Inconsistent revenue growth can hinder long-term planning and investment, posing challenges to maintaining market share and achieving sustainable growth.

Profitability Challenges

Persistent negative net profit margins indicate ongoing profitability challenges, which can limit reinvestment in the business and affect shareholder returns.

Equity Fluctuations

Fluctuations in equity levels suggest potential financial instability, which can impact investor confidence and the company's ability to raise capital.

Aditya Birla Fashion and Retail Limited Business Overview & Revenue Model

Company Description

Aditya Birla Fashion and Retail Limited designs, manufactures, distributes, and retails fashion apparel and accessories in India and internationally. It operates in two segments, Madura Fashion & Lifestyle, and Pantaloons. The company offers shirts, trousers, denims, t-shirts, dresses, suits and blazers, casuals, ceremonial, and party wear; shorts, joggers, track pants, sweatshirts, jackets, loungewear, biker t-shirts, polos, chinos, kurtas and bottom wear, occasion wear, festive ensembles, streetwear, classic shirts, logo T-shirts, casual pants, lehengas and kurta sets, ethnic bottom wear, athleisure wear, workwear, tops, sleepwear, crops tops, skirts, jeans, sportswear; accessories; and shawls, stoles, shoes, and lingerie, as well as home furnishings, footwear, handbags, bed linen, towels, smart table linen, dressy cushion covers, and others. It markets its products primarily under the Louis Philippe, Van Heusen, Allen Solly, and Peter England brands, as well as operates fashion store under the Pantaloons brand. The company also holds online and offline rights to the India network of California-based fashion brand Forever 21; and international brands portfolio, such as The Collective, Simon Carter, American Eagle, Ralph Lauren, Hackett London, Ted Baker, and Fred Perry. It operates 3091 brand stores and 377 Pantaloons stores, as well as 28,585 multi-brand outlets in approximately 900 cities in India. The company was formerly known as Pantaloons Fashion & Retail Limited and changed its name to Aditya Birla Fashion and Retail Limited in January 2016. Aditya Birla Fashion and Retail Limited was incorporated in 2007 and is based in Mumbai, India.

How the Company Makes Money

ABFRL primarily generates revenue through the sale of branded apparel and accessories across its retail outlets and online platforms. Its revenue model is driven by multiple streams, including direct sales from its flagship stores, e-commerce sales, and franchise partnerships. Key revenue streams include the sale of products under its owned brands, as well as through licensing agreements for international brands. Additionally, the company benefits from strategic partnerships with designers and collaborations that enhance brand visibility and consumer appeal, contributing to its overall earnings. The company's focus on expanding its retail network and enhancing its online presence also plays a significant role in driving sales growth.

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	114.99B	73.77B	64.41B	124.18B	81.36B	52.49B
Gross Profit	67.00B	39.84B	31.70B	65.92B	42.26B	25.27B
EBITDA	12.70B	187.00M	-1.88B	5.63B	3.35B	-1.80B
Net Income	-4.66B	-3.76B	-6.28B	-360.00M	-1.09B	-6.73B
Balance Sheet
Total Assets	0.00	166.40B	224.11B	170.41B	124.07B	101.71B
Cash, Cash Equivalents and Short-Term Investments	23.67B	23.67B	13.35B	8.75B	7.26B	5.90B
Total Debt	0.00	50.17B	94.51B	65.73B	41.00B	35.99B
Total Liabilities	-68.13B	98.26B	176.90B	136.95B	96.18B	74.95B
Stockholders Equity	68.13B	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: Negative
• Last Price: 82.37
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ABFRL, the sentiment is Negative. The current price of 82.37 is below the 20-day moving average (MA) of 83.97, below the 50-day MA of 84.18, and below the 200-day MA of 86.78, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 42.55 is Neutral, neither overbought nor oversold. The STOCH value of 45.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
RESPONIND	―	₹48.75B	24.12	―	0.05%	25.62%	10.55%
KKCL	―	₹32.80B	25.25	―	0.38%	28.67%	-20.77%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ARVINDFASN	―	₹69.29B	―	―	0.31%	7.62%	-124.65%
ABFRL	―	₹99.65B	―	―	―	-19.17%	37.41%
RAJESHEXPO	―	₹52.47B	71.29	―	―	93.58%	93.53%

Aditya Birla Fashion and Retail Limited Corporate Events

ABFRL Launches OWND! Brand for Gen Z

Aditya Birla Fashion and Retail Ltd. (ABFRL) has launched a new fashion brand, OWND!, targeting India’s Gen Z and trend-conscious consumers. This brand aims to resonate with the dynamic lifestyle of young India, with plans to convert existing StyleUp stores to OWND! and expand to 100 stores by the end of the financial year. The launch is a strategic move to strengthen ABFRL’s position in the value fashion category and drive exponential growth.

Aditya Birla Fashion and Retail Secures Strategic Investment to Boost Digital Ventures

Aditya Birla Fashion and Retail Limited, through its subsidiary Aditya Birla Digital Fashion Ventures Limited, has entered into agreements with ServiceNow Ventures Holdings, Inc. for a proposed investment of up to INR 437 Crore. This investment involves the issuance of non-cumulative, participating compulsorily convertible preference shares, subject to customary closing conditions and regulatory approvals. This strategic move is expected to enhance the company’s digital capabilities and strengthen its market position.

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.