Neutral Aditya Birla Fashion and Retail; target of Rs 90: Motilal Oswal

Neutral

Motilal Oswal's research report on Aditya Birla Fashion and Retail

Aditya Birla Fashion and Retail (ABFRL) reported a weak 2Q as higher A&P spends (up 200bp YoY) and losses in TMRW led to a 14% decline in reported EBITDA (37% miss). Pre-Ind AS EBITDA for 1HFY26 declined ~12% YoY. Pantaloons delivered 7% LFL growth, driven by the boost from early festive, revamped retail identity and growth in OWND (+43% YoY, on a low base). However, EBITDA margin declined 120bp YoY due to higher A&P spends and continued losses in OWND.

Outlook

We ascribe EV/sales multiples of 1x/0.9x/1.5x to ABFRL’s premium ethnic/TMRW/Luxury Retail portfolio to arrive at our revised TP of INR90. Reiterate Neutral rating.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Aditya Birla Fashion and Retail_06112025_Motilal Oswal