💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 4% YoY to INR 2,038 Cr in Q2 FY26. Lifestyle Brands grew 7% YoY to INR 1,754 Cr, while Emerging Businesses declined 10% YoY to INR 292 Cr, primarily due to the exit from the Forever 21 business.

Geographic Revenue Split

Not disclosed in available documents, though the company operates in 785+ cities and towns across India with 3,250 stores.

Profitability Margins

Gross margin improvement led to a 125 bps expansion in EBITDA margin to 16.6% in Q2 FY26. Lifestyle Brands margin stood at 19.3% (+80 bps YoY), while Emerging Business margin improved 130 bps to 1.5%.

EBITDA Margin

Consolidated EBITDA margin was 16.6% in Q2 FY26, up from 15.3% YoY. Absolute EBITDA grew 12% YoY to INR 338 Cr, driven by top-line momentum in Lifestyle Brands and cost discipline.

Capital Expenditure

Net Block (including CWIP) stood at INR 1,156 Cr as of September 2025. The company added 75+ stores in Q2 FY26 and 125+ in H1 FY26, indicating significant ongoing investment in retail expansion.

Credit Rating & Borrowing

Net Debt increased to INR 993 Cr in September 2025 from INR 781 Cr in March 2025, primarily due to inventory build-up for the festive season. Finance costs decreased to INR 98 Cr in Q2 FY26 from INR 109 Cr YoY due to effective borrowing management.

⚙️ Operational Drivers

Raw Materials

SPECIFIC raw material names like cotton or fabric are not listed; however, 'finished goods prices' and 'feed stock availability' are cited as critical operational factors impacting the cost structure.

Capacity Expansion

Current retail footprint is 4.7 million square feet across 3,250 stores. The company added 75+ stores in Q2 FY26 and plans steady net additions going forward.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but management noted that gross margin improvements were a key driver for the 125 bps EBITDA margin expansion in Q2 FY26.

Manufacturing Efficiency

The integration of ABGL manufacturing operations into the Lifestyle Brands segment was completed to reflect operational synergies.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

Growth will be achieved through aggressive retail expansion (75+ stores per quarter), maintaining double-digit retail like-to-like (LTL) growth (12% in Q2), and strengthening brand leadership through celebrity associations and product innovation.

Products & Services

Apparel (shirts, trousers, suits), Innerwear, Footwear (Reebok), and accessories sold through 3,250 retail stores and wholesale channels.

Brand Portfolio

Louis Philippe, Van Heusen, Allen Solly, Peter England, Reebok, American Eagle, and Innerwear.

New Products/Services

New celebrity associations and high-impact Go-To-Market (GTM) strategies blending lifestyle narratives with product innovation are expected to drive brand affiliation.

Market Expansion

Targeting smaller towns with 550+ stores already established; total network spans 785+ cities with a focus on opening larger format stores.

Strategic Alliances

Strategic partnerships include licensing/distribution for Reebok and American Eagle in the Indian market.

🌍 External Factors

Industry Trends

The industry is shifting toward larger store formats and premiumization. ABLBL is positioning itself by opening larger stores and using celebrity associations to drive brand salience.

Competitive Landscape

Competitors include other major apparel retailers; ABLBL competes through brand salience and a deep retail footprint in both urban and small-town India.

Competitive Moat

Moat is built on a powerful brand portfolio (Louis Philippe, Van Heusen) and a massive distribution network of 3,250 stores, which provides significant rent leverage and sales-per-square-foot advantages.

Macro Economic Sensitivity

Highly sensitive to consumer spending cycles, wedding seasons, and festive periods like Pujo, which provided a healthy boost to demand in Q2.

Consumer Behavior

Shift toward branded retail and lifestyle-led product narratives; demand is heavily influenced by localized events like Pujo in East India.

Geopolitical Risks

Global demand-supply conditions and feedstock prices are noted as factors that could impact operations.

⚖️ Regulatory & Governance

Industry Regulations

Operations are affected by GST transitions and BIS (Bureau of Indian Standards) sourcing regulations for footwear (Reebok).

Taxation Policy Impact

The effective tax rate for Q2 FY26 was approximately 25.8% (INR 8 Cr tax on INR 31 Cr PBT).

Legal Contingencies

The company notes potential impacts from litigation and labor negotiations, but specific case values are not disclosed.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the consumer response to revised prices following the GST transition and the impact of localized issues in East India on overall momentum.

Geographic Concentration Risk

The company has a broad national presence across 785+ cities, reducing regional concentration risk, though localized issues in the East were noted in Q2.

Third Party Dependencies

Dependency on international brand partners for Reebok and American Eagle, and supply chain dependencies for feedstock.

Technology Obsolescence Risk

The company is mitigating digital risks by implementing automatic replenishment software and upgrading IT systems for GST compliance.