On June 23, 2025, the Aditya Birla Group formally stitched a new chapter in India’s retail narrative as Aditya Birla Lifestyle Brands Ltd (ABLBL) made its standalone debut on the BSE and NSE. With this move, the Group now commands a combined fashion market capitalisation of nearly ₹30,000 crore — signalling not only the financial heft of the Aditya Birla Group’s fashion strategy but also the formal arrival of a new retail era on Dalal Street.
Spun off from Aditya Birla Fashion and Retail Ltd (ABFRL), the newly- listed ABLBL emerges with a focused identity — a consumer-first powerhouse in western wear, innerwear, and activewear, boasting iconic labels like Louis Philippe, Van Heusen, Allen Solly, Peter England, Reebok, and American Eagle. While ABFRL continues to scale ethnic, luxury, and D2C fashion portfolios, ABLBL is purpose-built for capital efficient growth, steady margins, and franchise-powered retail expansion.
| “The listing of ABLBL reinforces our commitment to value creation through focused, future-ready businesses.” “India stands at the cusp of a transformative growth phase, with consumption poised to be a primary driver. We aspire to build India’s first portfolio of billion-dollar brands in fashion and lifestyle.” – Kumar Mangalam Birla, Chairman, Aditya Birla Group |
The Business of the Split: From One Fashion Giant to Two Focused Engines
The demerger was first announced in 2023 and approved in 2024. But it was on June 23, 2025, that the transition became tangible for investors and industry watchers — with ABLBL hitting the markets at a valuation of ₹21,000 crore, while ABFRL continues to trade around ₹9,000 crore.
This two-brand strategy is now manifest in the numbers:
- ABFRL retains strong cash reserves of ₹2,350 crore, plans a ₹2,500 crore equity raise for expansion, and is home to premium ethnic, value retail, and luxury partnerships (Pantaloons, Sabyasachi, Tarun Tahiliani, Shantnu & Nikhil, Galeries Lafayette).
- ABLBL enters as a leaner, high-efficiency operation — focused on 700+ new store additions, 9% same-store sales growth, and strong EBITDA margins (~17%).
From FY25 results: ABLBL reported ₹7,830 crore in revenue, a 15% operating margin, and a net profit of ₹60 crore.
ABLBL: A Fashion-First Business Model for a New Era
With over 3,250 stores (most under franchise), a presence across metros and Tier 2/3 towns, and a high brand recall across price points, ABLBL is India’s first pure-play lifestyle fashion company on the stock exchange.
Key Features:
- Core Brands: Louis Philippe, Van Heusen, Peter England, Allen Solly
- Growth Drivers: American Eagle (youth segment), Reebok (sports), Van Heusen Innerwear
- Business Model: ~70% franchise-led, capital-light, scale-ready
- Target: Double revenue and triple cash profits in five years
“Over the next five years, we aim to more than double our scale and more than triple our cash profits. This growth will be strategic, disciplined and powered by strong cash flows,” said Ashish Dikshit, Managing Director, ABLBL.
Two of ABLBL’s brands already clock over ₹2,000 crore in annual sales, and two others over ₹1,000 crore.
The company will invest ₹300 crore per year — largely toward retail network expansion, with part allocated to technology and internal capability building.
“The last two years have been difficult for the industry, but fashion is cyclical, and we have navigated many such turns in our 25-year journey,” Dikshit added.
The company currently has no immediate acquisition plans, with a sharp focus on organic growth. Among its key bets are Reebok and Van Heusen Innerwear, identified as major growth drivers going forward.
In investor notes, Motilal Oswal has placed a neutral rating with a ₹190 target, projecting 10% CAGR from FY25–28, supported by strong brand equity and network expansion.
ABFRL: The Bigger Picture — Ethnic, Luxury & Digital-Led Fashion
While ABFRL may have shed Madura’s western wear legacy to ABLBL, it retains a diverse and high-potential portfolio:
- Ethnic brands: Jaypore, Tasva (Tarun Tahiliani), House of Masaba, Shantnu & Nikhil, and TCNS (W, Aurelia)
- Luxury alliances: Galeries Lafayette (Mumbai & Delhi), Christian Louboutin
- D2C & youth-first labels: TMRW house brands, Wrogn, Bewakoof, StyleUp
ABFRL’s recent Q4 FY24 performance shows strong operational recovery:
- Revenue: ₹1,719 crore (9% YoY)
- EBITDA: ₹295 crore (17.2% margin, up 3x YoY)
- Full-Year Revenue: ₹7,355 crore (+14%)
- EBITDA: ₹854 crore (+64%)
- Losses: Narrowed from ₹-907 crore to ₹-624 crore
With a ₹2,500 crore fundraise planned, ABFRL is sharpening its focus on premiumisation, offline scale, and profitability in high-margin categories like ethnic and experiential fashion.
| “We’ve built an organisation rooted in iconic brands, scale, and a deep connect with Indian consumers. ABLBL is now well positioned to unlock sustainable, profitable growth.” – Ashish Dikshit, Managing Director, ABLBL |
The Strategic Logic: Why the Split Made Sense
The separation creates sharper investor propositions:
- ABLBL is high-velocity, cash-generative, and operationally lean — appealing to investors seeking growth + stability.
- ABFRL is brand-rich, scale-heavy, and innovation-driven — suited for long-term bets on value migration and discretionary fashion.
Both companies also now enjoy separate balance sheets, with ABFRL holding ₹2,350 crore in cash (against ₹2,000 crore debt), and ABLBL carrying ~₹1,000 crore debt with strong operational cash flows and capex sustainability.
Fashioned for the Future
Together, ABFRL and ABLBL represent India’s first structured ₹30,000 crore fashion conglomerate on the stock exchange — diverse in positioning, yet unified in vision.
For retailers, franchise partners, and fashion entrepreneurs, this strategic clarity opens new avenues:
- Suppliers benefit from targeted brand partnerships.
- Franchisees can choose between ABFRL’s premium/luxury formats or ABLBL’s proven lifestyle staples.
- Investors can back distinct strategies — value fashion or experiential fashion.
What to Watch Next
- Will ABLBL’s market performance match its strong brand metrics?
- Can ABFRL’s ₹2,500 crore fundraise re-ignite investor sentiment and scale its luxury bets?
- How will consumer sentiment and discretionary spending shape each business’ Q1 FY26 earnings?
With one stroke of strategic clarity, the Aditya Birla Group has recast India’s fashion retail narrative — turning one giant into two focused powerhouses, each tailored for its own runway.
Both entities now walk independently, but with the shared ambition to define India’s next decade of fashion — whether through timeless staples or elevated experiences.
