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    Aditya Birla Lifestyle Brands Q1 FY27 earnings call

    ABLBL
    Consumer Services·3 Aug 2026
    Management Summary

    Aditya Birla Lifestyle Brands Limited reported a strong Q1 FY27 with consolidated revenue growing 11% to ₹2,046 crores and PAT increasing 21% to ₹29 crores. This performance was driven by double-digit growth in both Lifestyle and Emerging Brands, supported by healthy retail like-to-like and e-commerce growth. While cost pressures are expected in H2 FY27, management plans to mitigate them through productivity and price adjustments, maintaining a cautious but confident outlook.

    Highlights

    5

    • ABLBL revenue grew 11% Y-o-Y to Rs. 2,046 crores, demonstrating strong top-line performance.

    • Consolidated EBITDA increased 14% Y-o-Y to Rs. 327 crores, with EBITDA margin expanding 50 bps to 16%.

    • PAT grew significantly by 21% Y-o-Y to Rs. 29 crores, indicating improved profitability.

    • Emerging Brands, including Reebok and Innerwear, showed robust growth of 19% Y-o-Y to Rs. 332 crores.

    • Retail like-to-like growth remained healthy at 8% for Lifestyle Brands and over 11% for Emerging Business, extending sustained momentum.

    Concerns

    4

    • Wholesale channel growth was modest at only 5% this quarter, though underlying secondary growth was in early double-digits.

    • A slight marginal delay in the festive period pushed primary billing for wholesale into the second quarter.

    • Management anticipates a 3-4% cost increase in H2 FY27 due to raw material, logistics, and labor costs, requiring mitigation efforts.

    • Gross margin contracted by approximately 150 basis points this quarter, primarily due to channel mix and provisioning.

    Key financials

    Single quarter

    04 metrics
    1. 01Revenue₹2,046 Cr+11%YoY
    2. 02EBITDA₹327 Cr+14.0%YoY
    3. 03EBITDA Margin16%
    4. 04PAT₹29 Cr+21%YoY

    Segment breakdown

    • Lifestyle Brands₹1,725 Cr83.9%
    • Emerging Brands₹332 Cr16.1%
    Donut· Share of Revenue

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    ₹300 stores

    Guidance & targets

    6
    CategoryTargetPriority
    Store Expansion
    Gross Store Additions
    more than 300 stores
    		High
    Store Expansion
    Net Store Additions
    150 to 200 stores
    		Medium
    Costs
    Cost Increase
    3% to 4%
    		High
    Growth
    Reebok Growth Rate
    closer to 20%
    		Medium
    Revenue Mix
    Small Town Revenue Share
    more than 20%
    		Medium
    Network Expansion
    Van Heusen Innerwear Network Addition
    about 20%
    		Medium

    What to watch in Q2 FY27

    4

    Wholesale Channel Growth

    Next quarter (Q2 FY27)
    Current5% Y-o-Y in Q1 FY27
    TargetStronger growth, evening out with Q1+Q2 combined

    Why it matters

    To confirm if Q1's low growth was indeed a timing issue related to festive periods and not a structural slowdown in the wholesale channel.

    I think the primary difference was slight marginal delay in the festive period this time, which pushes a lot of primary billing into the second quarter. It is a shift of 10-15 days. So, when you look at Quarter 2, you will find the Quarter 1 plus Quarter 2 in as strong a place as rest of the channels.

    Risks & concerns

    3
    RiskSeverity

    Inflation Impact on Demand

    Management is cautious about potential demand moderation in H2 FY27 due to broader inflation affecting consumer wallets. — Management acknowledged

    medium

    Cost Increase in H2 FY27

    Expected 3-4% increase in costs (raw materials, logistics, labor) in H2 FY27, requiring active mitigation. — Management acknowledged

    medium

    BIS-related issues for Reebok

    BIS approval remains an ongoing problem, but the company has diversified sourcing and BIS-enabled factories to manage the risk. — Management acknowledged

    low

    Q&A highlights

    8

    “I think the primary difference was slight marginal delay in the festive period this time, which pushes a lot of primary billing into the second quarter. It is a shift of 10-15 days.”

    Clarifies that the lower wholesale growth in Q1 was a timing issue related to festive periods, not a structural weakness, with expectations for it to normalize in Q2.

    asked by Archana Menon

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Performance Highlights

    Aditya Birla Lifestyle Brands Limited (ABLBL) delivered a strong Q1 FY27, marking its third consecutive quarter of double-digit growth. Consolidated revenue increased 11% year-on-year to Rs. 2,046 crores. This growth was accompanied by improved profitability, with consolidated EBITDA rising 14% year-on-year to Rs. 327 crores, and the EBITDA margin expanding by 50 basis points to 16%. Net profit (PAT) also saw a significant increase of 21% year-on-year, reaching Rs. 29 crores.

    02

    Segmental and Channel Growth Drivers

    The Lifestyle Brands segment contributed Rs. 1,725 crores to revenue, growing 10% year-on-year, with an EBITDA margin of 18.5%, up 40 bps. The Emerging Brands segment, comprising Reebok, Van Heusen Innerwear, and American Eagle, demonstrated even stronger growth at 19% year-on-year, reaching Rs. 332 crores. Retail channels continued their robust performance with 10% growth and an 8% like-to-like growth for Lifestyle Brands, extending a seven-quarter momentum. E-commerce also saw strong growth of 23% overall, with the company's own digital platform growing over 50%.

    03

    Store Expansion and Network Footprint

    In Q1 FY27, ABLBL opened 65 new stores across its portfolio, expanding its retail footprint to 3,362 stores, covering nearly 5 million square feet across more than 800 cities. The company aims for an aggressive expansion, targeting over 300 gross store additions for the full fiscal year. Net store additions are projected to be between 150 to 200 stores for FY27, reflecting a strategic rationalization of the existing network alongside new openings.

    04

    Cost and Margin Outlook

    While Q1 FY27 experienced marginal cost pressure, management anticipates a 3-4% cost increase in the second half of the fiscal year, particularly in Q2 and Q3, driven by raw material prices, logistics, and labor costs. The company plans to mitigate this through productivity improvements, cost rationalization, and smaller, targeted price hikes across its portfolio. The 150 bps gross margin contraction in Q1 was attributed to channel mix and provisioning, which management expects to normalize over the year.

    05

    Emerging Brands: Reebok's Strong Performance

    Reebok, a key brand within the Emerging Business portfolio, exhibited the highest like-to-like growth in the network, achieving mid-teen-double-digit growth for several consecutive quarters. This indicates strong organic momentum. Management is confident in Reebok's long-term potential, targeting a 20% growth rate. The brand is currently underpenetrated with around 200 stores compared to 500-700 for other premium brands, offering significant runway for retail expansion, including into smaller towns with differentiated product propositions.

    06

    Market Dynamics and Consumer Trends

    Domestic demand conditions remained broadly consistent, with healthy consumer traction across categories and channels. Although a modest moderation was observed due to 'adhik maas' temporarily impacting peak wedding season demand, this was largely viewed as a timing shift. Small towns (Tier 3/4) continue to outperform, growing in excess of 15%, while metros (Tier 1) are growing closer to 10%. The company also noted a continued increase in the share of casual wear, growing by 2-3 percentage points annually.

    This is an AI-generated summary of a publicly available earnings call transcript.