Aditya Birla Group is sharpening its play in India’s fast-evolving fashion business, splitting its retail operations into two listed entities to capture a wider slice of the market. Addressing shareholders of Aditya Birla Fashion and Retail Ltd (ABFRL), Chairman Kumar Mangalam Birla said the group now operates with “dual growth engines” after completing the demerger of Aditya Birla Lifestyle Brands Ltd (ABLBL), which was listed in June.
India’s per capita GDP is projected to climb from 2,500 dollars to more than 4,000 dollars in the next five years, Birla noted, adding that this surge in aspirational consumption would accelerate the shift from unorganised to organised retail. That, he said, will create new demand across fashion categories and push the creation of brands at scale.
ABLBL, which houses labels such as Louis Philippe, Van Heusen, Allen Solly, Peter England, Reebok and American Eagle, has outlined a target of consistent double-digit revenue and EBITDA growth over the next five years. Over 250 new stores are planned for FY26, with a mix of franchise-led and company-owned outlets.
ABFRL will focus on Pantaloons, its mass retail brand, alongside ethnic labels like Sabyasachi, Shantnu & Nikhil, Masaba, Tarun Tahiliani, Jaypore, Tasva and TCNS. In the short term, Pantaloons will prioritise profitability, with an EBITDA margin improvement of 300 basis points targeted over the next five years. The chain plans to add 20–25 stores annually, each expected to turn profitable within a year.
To strengthen its balance sheet, ABFRL has raised 490 million dollars through a mix of QIP and preferential issue. Birla said the focus will now be on organic growth, profitability and building presence across all major consumption themes shaping India’s fashion future.
