Motilal Oswal's research report on Aditya Birla Fashion and Retail
Aditya Birla Fashion and Retail (ABFRL) delivered a better-thanexpected operational performance in 1QFY26, with revenue growth of 9% YoY (strong performance in Ethnics and TMRW) and EBITDA growth of 25% YoY (~22% beat,) driven by 16-24pp improvement in profitability for Ethnics and Luxury Retail. TMRW raised ~INR4.4b from ServiceNow Ventures for ~11% stake, valuing the company at ~INR40b. The funds would be used to accelerate growth through increased branding activities and offline expansion for key brands.
Outlook
We value ABFRL on the SoTP basis. We assign EV/EBITDA multiple of 11x to Pantaloons and EV/sales of 1x to other businesses of ABFRL (demerged) on Sep’27E. We reiterate our Neutral rating with an unchanged TP of INR85.
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