Adobe Stock
Aditya Birla Fashion and Retail Ltd (ABFRL) shares took a sharp hit on Wednesday (June 4, 2025), falling over 9 per cent to Rs 78.2, their lowest in a year.
The trigger? Flipkart sold its entire 6 per cent stake in the company via a Rs 582 crore block deal. The shares were offloaded at Rs 79.50 apiece, a steep discount to the previous close. That spooked the Street.
Why the sharp fall?
- Flipkart’s selloff: The e-commerce giant’s full exit raised eyebrows. Was it just a routine exit, or a signal that the e-commerce giant doesn’t see near-term upside?
- Bulk deal discount: This hurt investor sentiment, especially coming just after a major restructuring.
- Muted outlook: Despite margin improvement, losses continue and the company is still in turnaround mode.
Q4 FY25 results: Better, but still bleeding
| Metric | Q4 FY25 | Q4 FY24 | YoY change |
|---|---|---|---|
| Revenue | Rs 1,719 crore | Rs 1,581 crore | 8.7 per cent |
| Net loss | Rs 23.5 crore | Rs 266 crore | 91.2 per cent |
| EBITDA margin | 17.2 per cent | 6.5 per cent | 1.6 bps |
ABFRL’s ethnic and Pantaloons businesses also posted margin gains. But the full-year picture still looks grim: ABFRL posted a loss of Rs 456 crore in FY25.
What ABFRL does
Part of the Aditya Birla Group, ABFRL owns a strong portfolio of fashion brands including Louis Philippe, Van Heusen, Allen Solly and Pantaloons. It also holds licensing rights for global names like Ralph Lauren and American Eagle.
Here’s how its fundamentals look.
| Metric | Value |
|---|---|
| Market cap | Rs 10,492 crore |
| ROE | - 21.8 per cent |
| ROCE | 1.6 per cent |
| P/B ratio | 1.5 |
| Book value | Rs 55.8 |
| EPS | - Rs 5.2 |
Value Research Online ratings
According to Value Research Online, ABFRL doesn’t exactly scream quality right now.
- Overall: 2/5
- Quality: 2/10
- Growth: 6/10
- Valuation: 3/10
- Momentum: 4/10
This tells us the company still has a long way to go in proving it can deliver consistent performance.
Final word
The Flipkart exit has clearly shaken investor confidence. While ABFRL is showing some signs of recovery in its core businesses, consistent losses and restructuring moves keep it in the high-risk bucket.
Investors may want to wait for stability — and signs of sustainable profitability — before jumping in.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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