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Aditya Birla Fashion and Retail Limited (IN:ABFRL)
:ABFRL
India Market
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Aditya Birla Fashion and Retail Limited (ABFRL) AI Stock Analysis

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IN:ABFRL

Aditya Birla Fashion and Retail Limited

(ABFRL)

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Neutral 53 (OpenAI - 4o)
Rating:53Neutral
Price Target:
₹87.00
▲(1.46% 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 (ABFRL) vs. iShares MSCI India ETF (INDA)

Aditya Birla Fashion and Retail Limited Business Overview & Revenue Model

Company DescriptionAditya 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 MoneyABFRL 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
45
Neutral
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
55
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue114.99B73.77B64.41B124.18B81.36B52.49B
Gross Profit67.00B39.84B31.70B65.92B42.26B25.27B
EBITDA12.70B187.00M-1.88B5.63B3.35B-1.80B
Net Income-4.66B-3.76B-6.28B-360.00M-1.09B-6.73B
Balance Sheet
Total Assets0.00166.40B224.11B170.41B124.07B101.71B
Cash, Cash Equivalents and Short-Term Investments23.67B23.67B13.35B8.75B7.26B5.90B
Total Debt0.0050.17B94.51B65.73B41.00B35.99B
Total Liabilities-68.13B98.26B176.90B136.95B96.18B74.95B
Stockholders Equity68.13B68.12B40.34B33.43B27.73B26.44B
Cash Flow
Free Cash Flow0.0010.09B5.94B-451.20M6.03B9.43B
Operating Cash Flow0.0016.44B13.41B6.36B9.51B11.04B
Investing Cash Flow0.00-16.12B-29.92B-3.87B-5.51B-8.55B
Financing Cash Flow0.003.34B14.12B3.25B-5.27B-2.69B

Aditya Birla Fashion and Retail Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price85.75
Price Trends
50DMA
82.01
Positive
100DMA
80.99
Positive
200DMA
88.04
Negative
Market Momentum
MACD
0.90
Positive
RSI
49.35
Neutral
STOCH
32.80
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 85.75 is below the 20-day moving average (MA) of 88.42, above the 50-day MA of 82.01, and below the 200-day MA of 88.04, indicating a neutral trend. The MACD of 0.90 indicates Positive momentum. The RSI at 49.35 is Neutral, neither overbought nor oversold. The STOCH value of 32.80 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
₹34.19B22.400.36%30.23%4.59%
67
Neutral
₹49.72B24.820.05%25.62%10.55%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
55
Neutral
₹71.33B76.090.30%7.62%-124.65%
55
Neutral
₹54.08B73.4793.58%93.53%
53
Neutral
₹104.79B-19.17%37.41%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ABFRL
Aditya Birla Fashion and Retail Limited
85.75
-37.20
-30.26%
IN:ARVINDFASN
Arvind Fashions Ltd.
527.35
-68.21
-11.45%
IN:KKCL
Kewal Kiran Clothing Limited
545.45
-102.99
-15.88%
IN:RAJESHEXPO
Rajesh Exports Limited
181.70
-95.80
-34.52%
IN:RAYMONDLSL
Raymond Lifestyle Limited
1,175.00
-972.75
-45.29%
IN:RESPONIND
Responsive Industries Limited
182.30
-88.02
-32.56%

Aditya Birla Fashion and Retail Limited Corporate Events

Aditya Birla Fashion and Retail Opens Special Window for Share Transfer Requests
Jul 31, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 08, 2025