Aditya Birla Fashion And Retail Share Price Target: Brokerage Sets Upside At Rs 280 - Here’s Why

Aditya Birla Fashion & Retail Ltd. (ABFRL) received an 'ADD' rating from Emkay Global Financial Services, with a revised share price target of Rs 280 (current market price: Rs 264), following insights from ABFRL’s recent Investor Day.

The brokerage cited a sharper focus on organic growth, operational profitability, and sufficient capital buffers as key factors behind its bullish stance.

‘ABFRL’s ‘investor day’ highlighted focus on profitable organic growth with no further acquisitions and need for capital raise,’ as mentioned in the report by Emkay. 

ABLBL to Drive Mid-Teen EBITDA Growth
Emkay notes that ABFRL’s new entity, Aditya Birla Lifestyle Brands Ltd. (ABLBL), is set to deliver ~11% CAGR over FY24-30, accompanied by a 300 bps EBITDA margin expansion. This will be enabled by improved core business margins, discontinuation of loss-making Forever-21 operations, and robust performance from Innerwear, Reebok, and American Eagle.

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"ABLBL is a self-sustaining business with a strong return profile of over 70%," Emkay stated, adding that the lifestyle segment is targeting 250 brand stores annually, aggressive digital campaigns (including IPL -2025), and deeper retail penetration. Legacy brands like Louis Philippe, Van Heusen, Allen Solly, and Peter England are realigning to strengthen their positions across formal, casual, premium, and sub-premium wear categories.

Remnant ABFRL Sees Turnaround Plans
The remaining ABFRL business is targeting a high-teen revenue CAGR and a turnaround from losses to 7% EBITDA margin by FY30. The recent Rs 4,240 crore capital raise is expected to leave ₹7 billion in debt with ABLBL and Rs 13 billion cash in remnant ABFRL—adequate for expansion in segments like Style-Up, Tasva, TCNS, and Galeries Lafayette.

Pantaloons and Style-Up: Value with a Premium Spin
Pantaloons, now repositioned from value to premium masstige retail, is undergoing a brand reimaging phase. With ~400 stores, the brand will add 20–25 new outlets annually, expand into beauty, jewelry, and footwear, and push private labels to contribute ~80% of sales. Inventory turns are expected to improve from 2x to 3x with enhanced backend efficiencies and inter-store stock transfers.
 

Style-Up, ABFRL’s value fashion brand aimed at Gen Z, is seeing strong traction and will see ~50 annual store additions, offering affordable fashion-forward products with a premium shopping experience. The format leverages the integrated supply chain shared with Pantaloons.

Ethnic and Luxury Bets: Tasva, TCNS, Sabyasachi and More
ABFRL is also betting big on the ₹30 billion ethnic menswear market through Tasva, targeting 250 stores by FY30, up from ~70 now. Tasva differentiates with better fabrics, premium fit, and a high-end store experience.

In women’s ethnic wear, TCNS Clothing is expected to bounce back with portfolio corrections, inventory rationalization, and renewed store expansion—doubling count over five years while aiming to restore double-digit EBITDA margins.

Luxury ethnic labels like Sabyasachi, Tarun Tahiliani (TT), Shantanu & Nikhil (S&N), and House of Masaba (HOM) are also delivering strong top-line and margin growth. TT has tripled revenue, while Sabyasachi has doubled over 3–4 years. HOM is driving digital-first expansion, with 20% of sales from its website and new categories like bridal, men’s, and beauty (Lovechild).

Final Word
“We strongly believe that execution along guided lines offers re-rating potential, but we will keep a look-out for sustained improvement trends before turning constructive. We maintain ADD with TP of Rs280," Emkay concluded.