CLSA has retained its underperform rating on Aditya Birla Fashion & Retail (ABFRL) with a target price of ₹58 after the company posted a 9% year-on-year growth in consolidated revenue for the first quarter of FY26, coming in 5% above the brokerage’s estimates despite a higher number of wedding dates compared to last year. The growth was largely supported by a 25% rise in ethnic business sales and a 38% increase in TMRW revenues, while Pantaloons recorded a 1% decline year-on-year.
The company’s overall EBITDA margin improved to 6.1% from 5.4% in the same quarter last year, translating into a 24.6% year-on-year growth in EBITDA. However, ABFRL noted that demand conditions continue to remain muted. The stock last closed at ₹74.50.
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