Aditya Birla Fashion and Retail (ABFRL) plans to invest 500 crore in capital expenditures to turn around loss-making businesses, such as TCNS Clothing, which owns the ethnic women’s brand W, and digital-to-consumer company TMRW, for which it will also raise money.
With brands such as Pantaloons, Sabyasachi, and Collective, ABFRL reported Rs. 7,355 crore (US $ 861 million) in net sales and Rs. 624 crore (US $ 73 million) in net loss for 2024–2025.
Its lifestyle segment, which was formerly known as Madura Fashion, has been consolidated into Aditya Birla Lifestyle Brands (ABLBL), which is anticipated to go public on stock exchanges by the end of June.
The biggest increase in margins will come from turning around enterprises that are now losing money and decreasing their profitability, particularly those that are part of ethnic businesses. TCNS is the largest, followed by Tasva and TMRW. Investors were informed by Ashish Dikshit, managing director of Aditya Birla Fashion & Retail, that these companies are actually stifling the margins earned by other successful companies.
According to him, the group will be Ebitda positive next year, barring TMRW. Collectively, all other enterprises will turn a profit the next year, and each company will turn a profit on its own by FY ’27. The only company that could wait another year is TMRW.
Over the next five years, the company plans to double its profitability and triple its scale through rapid growth.
