What: Aditya Birla Fashion and Retail's net loss worsened to 2.15 billion rupees in the second fiscal quarter, despite a 13% increase in revenue.

Why it is important: The company's growing losses, driven by higher depreciation and interest costs, underscore the challenges of managing acquisitions and debt, even as sales continue to rise, reflecting broader pressures in the retail sector.

Aditya Birla Fashion and Retail reported a net loss of 2.15 billion rupees (USD 25.46 million) for the fiscal second quarter, an increase from previous losses. This was attributed to higher depreciation and amortisation expenses following the acquisition of TCNS Clothing Co, as well as increased interest costs due to elevated borrowings. Despite this, the company's revenue grew by 13% to 36.44 billion rupees (USD 431.6 million), with EBITDA rising 11% to 4.1 billion rupees (USD 48.56 million). The company's lifestyle brands and Pantaloons segment both saw modest sales growth of 3%. Aditya Birla Fashion and Retail operates a vast network of 4,538 stores across nearly 38,000 multi-brand outlets.

Aditya Birla Fashion and Retail reports increased loss despite revenue growth