ABFRL shares nosedive 10% as 6.2% equity change hands in block deal; Flipkart likely seller

ABFRL reported a consolidated net loss of Rs 23.55 crore

Shares of Aditya Birla Fashion & Retail (ABFRL) declined 10 percent to Rs 77 per share on June 4 as around 7.6 crore shares or 6.23 percent equity worth Rs 617 crore change hands at Rs 81 per share.

According to reports, Walmart-owned Flipkart was set to offload its entire 6 percent stake in ABFRL through a block deal estimated to be worth nearly Rs 600 crore and Goldman Sachs is reported to be the broker facilitating the transaction.

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Flipkart Investments is registered as a Category II foreign portfolio investor in India. The proposed exit is seen as part of Flipkart's broader strategic portfolio restructuring amid shifting priorities in India’s intensely competitive retail landscape.

In the March quarter, ABFRL reported a consolidated net loss of Rs 23.55 crore, significantly narrowing from a loss of Rs 266.36 crore in the same quarter last year. Revenue from operations rose to Rs 1,719.48 crore, up from Rs 1,575.12 crore a year earlier. Total expenses for the quarter stood at Rs 1,959.53 crore.

The company’s earnings before interest, tax and depreciation (EBITDA) grew almost sixfold to Rs 205 crore, as against Rs 35 crore in the March quarter of FY24. It was propelled by sharp margin expansion in its Pantaloons and ethnic segments. Further, its EBITDA margin expanded to 12 percent in Q4FY25, compared to 2.2 percent in the corresponding period last year.

As one of India’s leading fashion retailers, ABFRL’s portfolio includes well-known brands such as Pantaloons, Allen Solly, and several domestic and global labels. The company's performance is often seen as a barometer for the broader retail and apparel industry in India.

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