Transcript of Q1FY27 Earnings call of the Company

August 13, 2026 BSE Limited National Stock Exchange of India Limited Scrip code: 535755 Symbol: ABFRL Sub.: Transcript of Q1FY27 Earnings Call of the Company Ref.: 1. Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and 2. Our intimation dated August 4, 2026 Dear Sir/ Madam, With reference to the captioned subject, the transcript of Q1FY27 Earnings Call held on Monday, August 10, 2026 is enclosed herewith. The above details along with the audio recordings of the Earnings Call are being made available on the website of the Company i.e., www.abfrl.com. Thanking you, Sincerely, For Aditya Birla Fashion and Retail Limited Rajeev Agrawal Company Secretary & Compliance Officer ACS 18877 Encl: as above ADITYA BIRLA FASHION AND RETAIL LIMITED Registered Office: Piramal Agastya Corporate Park, Building ‘A’, CIN: L18101MH2007PLC233901 Website: www.abfrl.com 4th and 5th Floor, Unit No. 401, 403, 501, 502, Tel.: +91 86529 05000 E-mail: secretarial@abfrl.adityabirla.com L.B.S. Road, Kurla, Mumbai - 400 070 Fax: +91 86529 05400 “Aditya Birla Fashion and Retail Limited (ABFRL) Q1 FY27 Earnings Conference Call” August 10, 2026 MANAGEMENT: MR. ASHISH DIKSHIT – MANAGING DIRECTOR – ADITYA BIRLA FASHION AND RETAIL LIMITED MR. SURAJ BAHIRWANI – CHIEF EXECUTIVE OFFICER, PANTALOONS MR. JAGDISH BAJAJ – CHIEF FINANCIAL OFFICER – ADITYA BIRLA FASHION AND RETAIL LIMITED Page 1 of 18 Aditya Birla Fashion and Retail Limited (ABFRL) August 10, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the First Quarter Earnings Conference Call of Aditya Birla Fashion and Retail Limited. The call will begin with a brief discussion by the company's management on the Q1 FY 2027 performance, followed by a question-and-answer session. As a reminder, all participant lines will be in the listen-only mode. Should you need assistance during this conference call, please signal an operator by pressing star, then zero on your touch- tone phone. Please note that this conference is being recorded. We have with us today Mr. Ashish Dikshit, Managing Director; Mr. Suraj Bahirwani, CEO, Pantaloons; and Mr. Jagdish Bajaj, CFO. I want to thank the management team on behalf of all the participants for taking their valuable time to be with us. I must remind you that today's discussion may include certain forward-looking statements and therefore must be viewed in conjunction with the risks that the company faces. Please restrict your questions to the quarter performance and to the strategic questions only. Housekeeping questions can be dealt separately with the IR team. With that, I would now like to hand the conference over to Mr. Jagdish Bajaj. Thank you, and over to you, sir. Jagdish Bajaj: Thank you. Good evening, everyone. Thank you for joining us today for the Q1 FY 2027 earnings call of Aditya Birla Fashion and Retail Limited. From a demand perspective, the environment remained broadly stable and largely in line with trends seen over the last few quarters. Within the period, consumer traction was relatively better in May, while June reflected the market dynamics in the lead up to the market-wide end of season sale. Overall, consumption trends remained steady across categories and channels. Occasion-led consumption, however, saw some moderation as Adhik Maas impacted the peak wedding season and consequently led to lower wedding-related purchases. Against this backdrop, ABFRL sustained its double-digit growth momentum with healthy traction across key businesses, underscoring the resilience and strength of our diversified portfolio. Our retail channel, in particular, remained strong across the portfolio, supported by upgraded merchandise, sharper assortments, improved in-store experience, and sustained consumer engagements. Now moving to the financial performance of the quarter. ABFRL reported revenue of INR2,026 crores, registering an 11% Y-o-Y growth. Over the years, ABFRL has built a large, diverse portfolio comprising both large established businesses and newer growth platforms. Our established portfolio includes businesses such as Pantaloons, the TCNS, our designer-led brands, and The Collective and Mono-Brand businesses. Alongside these, over the last 4 to 5 years, we have incubated and scaled several new businesses, including TMRW, Galeries Lafayette, OWND, and Tasva. Page 2 of 18 Aditya Birla Fashion and Retail Limited (ABFRL) August 10, 2026 Viewed through this lens, both our established and newer businesses contributed meaningfully to growth during the quarter. Our established businesses delivered steady high-single digit growth. Importantly, this growth was accompanied by margins that remained broadly stable compared with the same period last year, reflecting the underlying strength and resilience of these businesses. At the same time, our newer businesses continued to scale strongly, delivering around 30% Y- o-Y growth, supported by the expansion of the retail footprint and continued investment in building these businesses for the long term. Moving to profitability, EBITDA for the quarter stood at INR167 crores with a margin of 8.2%. The Y-o-Y decline largely reflects lower treasury income, along with continued investment in scaling our newer businesses. Excluding treasury income, EBITDA increased Y-o-Y, reflecting better operating performance on a comparable basis. At a segment level, the ethnic businesses maintained broadly stable EBITDA, while TMRW continued to demonstrate improvement in its profitability trajectory with Y-o-Y EBITDA losses narrowing during the quarter. Reported loss for the quarter stood at INR249 crores, compared to a loss of INR234 crores in the corresponding period last year, primarily due to higher Ind AS depreciation and finance costs associated with new store openings. Coming to the balance sheet and cash position. At the standalone level, we ended the quarter with gross cash of approximately INR1,000 crores. The deployment of this cash remained broadly in line with priorities and framework that we outlined during the previous investor call. We are confident that this cash is enough for us to fund the businesses for next 2 years, with annual cash funding requirement of INR500 crores to INR550 crores. And by FY 2029 and '30, we expect the business to be FCF positive. On our retail network expansion, we continued to follow a calibrated and measured approach to expansion. At the end of the quarter, our portfolio comprised 1,286 stores, spanning more than 7.9 million square feet of retail space. During the quarter, we added more than 45 stores across the portfolio, with expansion focused on markets and brands where we continue to see attractive long-term growth opportunities. Now let me brief you on the performance of individual segments. Coming to the Pantaloons segment. Revenue for the quarter stood at INR1,204 crores, registering a 10% Y-o-Y growth. EBITDA margin came in at 15.9%, lower than the previous year, largely reflecting the continued scaled up of OWND. The Pantaloons business delivered another solid quarter, with revenue growing 7%, supported by a healthy 4% like-to-like growth. The Pantaloons strategy continues to progress well, with sharper merchandise, improved fashion relevance, and the new retail identity driving better consumption traction. Digital momentum remained healthy, further extending the overall omni-channel proposition. OWND delivered 55% Y-o-Y growth, primarily led by network expansion and increasing consumer traction. Page 3 of 18 Aditya Birla Fashion and Retail Limited (ABFRL) August 10, 2026 During the quarter, we added 10 new stores across the segment, comprising 1 Pantaloons store and 9 OWND stores as we continue to expand the network in key markets. Turning to our ethnic portfolio, it is one of the most comprehensive portfolios with annual revenue more than INR2,200 crores. This business in Q1 reported revenue of INR454 crores, registering a [Showing first 8,000 characters — download PDF for full document]