Aditya Birla Lifestyle Q2: consolidated PAT doubles YoY to ₹53 Cr as margins expand
PAT +126.32% YoY · revenue +11.17% · margins expanding
₹2,265.61 Cr
+11.17% YoY
₹53.05 Cr
+126.32% YoY
2.31%
+1.2pp YoY
₹0.44
Aditya Birla Lifestyle Brands' consolidated PAT rose 126.3% YoY to ₹53.05 Cr (from ₹23.44 Cr) on revenue from operations up 11.2% YoY to ₹2,265.61 Cr — profit growing far faster than revenue, the hallmark of margin expansion rather than a topline-led print. Sequentially, PAT was up 82.8% QoQ and revenue 10.7% QoQ against Q1 FY27 (₹29.02 Cr PAT, ₹2,045.74 Cr revenue). No verified Q2-specific street estimate could be found — results were filed today and had not yet been previewed by brokerages; full-year FY27 consensus (where available) pegs EPS growth near 32.6%, well below the pace this quarter alone implies, so this print reads ahead of that run-rate. On guidance, management's Q1 FY27 call flagged 'margin expansion through productivity & cost offsets' for FY27, and this quarter delivered on exactly that: consolidated net profit margin expanded to 2.34% from 1.14% YoY (1.41% QoQ).
Q2 FY-2027 vs prior quarters
The expansion is a fixed-cost leverage story, not a gross-margin one. Combined cost of materials, stock-in-trade purchases and inventory change held flat at ~42.3% of revenue (42.28% vs 42.26% YoY), so sourcing/pricing was a non-factor. The gain instead came lower down: employee cost fell to 10.5% of revenue from 10.8% YoY, rent to 7.0% from 7.4%, depreciation to 9.9% from 10.3%, and finance cost to 4.2% from 4.8% — the finance-cost improvement lines up with the ₹150 Cr commercial paper repayment the company made in September 2026. Standalone PAT grew a slightly slower 121.8% YoY to ₹50.16 Cr versus consolidated's 126.3%, a >3pp gap, with subsidiary Aditya Birla Garments Ltd providing the incremental lift on consolidation — both bases tell the same expansion story, just at slightly different magnitudes.
The stock went into the print at ₹71.08, down 7.7% over the past month of trading.
What the summary numbers don't show
No exceptional items this quarter or in either comparison quarter — margin gain is organic, unlike FY26's full-year ₹49.03 Cr one-off
FY27: 300+ store gross additions (net 150–200), targeting ~7% steady-state retail LTL, margin expansion through productivity & cost offsets, 3–4% cost inflation expected H2 (Q2–Q3), Reebok target: double from ₹500Cr in 3.5 years.
— This quarter: met
Other developments this quarter: ICICI Prudential MF crossed a 5% stake in the company on October 9, 2026, and the board approved an ESOP Scheme 2026 in August alongside the routine trading-window closure ahead of this result. No standalone press release was available to cross-check management's own framing of the quarter's drivers.
W1
Management guided 3-4% cost inflation for Q2-Q3 FY27 on the Q1 call — this quarter shows no margin pressure from it yet; Q3 FY27 print is the real test
W2
FY27 store-network guidance of 300+ gross additions (net 150-200) not disclosed in this statement — last known count ~3,362 stores as of Q1 FY27, needs confirmation via investor presentation/concall
W3
Reebok target to double from its ₹500 Cr base within 3.5 years — no segment disclosure this quarter (single reportable segment under Ind AS 108); watch for concall commentary
No exceptional items in Q2 FY27, Q1 FY27 or Q2 FY26 (unlike the FY26 full-year column, which carried a ₹49.03 Cr consol / ₹48.97 Cr standalone one-off) — growth is clean. Store-count/LTL guidance metrics are not disclosed in this financial statement (last known store count ~3,362 as of Q1 FY27 per press reports).
Informational and educational content only. Not investment advice.