Aditya Birla Fashion and Retail Limited (ABFRL) engaged in designing, manufacturing, and retailing apparel and accessories nationwide, is a leading player in India’s fashion industry, with a wide range of well-known brands like Louis Philippe, Van Heusen, Allen Solly, and Pantaloons.
The unexpected 66 percent steep fall in share price in the day’s trade has drawn significant investor interest and sparked curiosity about the factors behind it. Let’s explore further.
During Thursday’s trading session, the shares of Aditya Birla Fashion & Retail opened at Rs.97.00 per share and further declined to Rs.88.8 per share, depicting a fall of 66.11 percent from its previous close of Rs.269.15 per share.
Reason For The Fall
Aditya Birla Fashion and Retail Limited (ABFRL) has gone through a demerger, leading to the formation of two separate listed companies aimed at better targeting their market segments. As part of this move, Aditya Birla Lifestyle Brands Limited (ABLBL) has been separated from ABFRL to cater to a different set of customers. Following the demerger, ABFRL shares experienced a sharp decline on Thursday, May 22.
Shareholders of ABFRL are entitled to receive shares of ABLBL on a one-to-one basis. According to the approved scheme, for every fully paid equity share of Rs.10 held in ABFRL, shareholders will be allotted one fully paid equity share of Rs.10 in ABLBL. The newly issued ABLBL shares are scheduled to be listed on both the Bombay Stock Exchange and the National Stock Exchange of India.
Brand Portfolio Post Demerger
ABFRL’s demerged portfolio features a diverse collection of leading fashion and lifestyle brands, each positioned for substantial growth by 2030. Pantaloons leads the segment with revenues exceeding Rs.5,000 crores. In the Rs.2,000-5,000 crores range, Style Up and TMRW are prominent. The Rs.1,000-2,000 crores category includes W, Aurelia, Sabyasachi, and The Collective, while Galeries Lafayette, Tasva, and Tarun Tahiliani fall within the Rs.500-1,000 crores bracket. Brands such as Jaypore, Shantnu & Nikhil, and Masaba are in the segment with revenues under Rs.500 crores.
The ABLBL portfolio is anchored by established brands in the Rs.2,000-5,000 crores range, including Louis Philippe, Van Heusen, Allen Solly, and Peter England. Van Heusen Innerwear and Reebok are positioned in the Rs.1,000-2,000 crores category, while American Eagle represents the Rs.500-1,000 crores segment. This structure highlights ABLBL’s focus on scaling well-known brands and fostering their evolution toward greater market presence and self-sufficiency by 2030.
According to its latest financial results, Aditya Birla Fashion and Retail Ltd (ABFRL) reported consolidated revenue of Rs.4,305 crores in Q3 FY25, reflecting a 3.3 percent year-on-year growth from Rs.4,167 crores in Q3 FY24. Sequentially, revenue rose by 18.1 percent from Rs.3,644 crores in Q2 FY25.
The company reported a net loss of Rs.42 crores in Q3 FY25, significantly narrowing from a loss of Rs.108 crores in the same quarter last year. On a sequential basis, the net loss also improved from Rs.215 crores in Q2 FY25, indicating better cost management and operational efficiency.
Written by: Siddesh S Raskar
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