Aditya Birla Lifestyle Brands Limited (ABLBL) is a part of the Aditya Birla Group, commanding a retail space of 4.7 million sq. ft. across India, with a network of 3,305 brand stores and presence across 37,000+ multi-brand outlets and 7000+ shop-in-shops across departmental stores. The company emerged as an independent entity following the demerger plan approved by the board in 2024, under which shareholders of Aditya Birla Fashion will receive one share in Aditya Birla Lifestyle for every share held in the former entity, with the demerger ratio being 1:1.
ABLBL made its stock market debut on BSE at ₹167.75 and on NSE at ₹167, with a discovered price of ₹171 per share. The company commanded a total market capitalization of close to ₹20,500 Crore at listing. The strategic demerger was executed to create two focused companies with distinct business models and growth opportunities, enabling both entities to pursue their specific growth trajectories.
Aditya Birla Lifestyle will include well-known brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England, and Reebok, along with casual wear labels like American Eagle and Forever 21, and the innerwear line under Van Heusen. The western wear legacy brands, growth brands like Reebok, American Eagle, and Van Heusen innerwear are all housed under the demerged entity, which also houses Madura Fashion, Louis Philippe, Van Heusen, Allen Solly, and Peter England.
The company operates through multiple segments covering lifestyle brands, youth western fashion, activewear, athleisure innerwear, and sportswear. ABLBL's comprehensive portfolio spans across various consumer segments, from premium western wear to casual lifestyle clothing, positioning it as a comprehensive fashion destination for Indian consumers.
ABLBL has a market capitalization of ₹19,460 Crore with revenue of ₹7,830 Crore and profit of ₹59.6 Crore, with promoter holding at 46.6%. For the quarter ended March 2025, lifestyle brands revenue grew 5% to reach ₹1,639 Crore with EBITDA of ₹328 Crore, resulting in an EBITDA margin of 20%, representing a 50 bps gain versus the previous year.
Retail LTL (Like-to-Like) for the quarter was at 9%, led by strong initiatives to drive productivity, with the brands consistently evolving, focusing on elevated design, innovative features, and a broader range of high-quality products that cater to diverse age groups, aligning with the shift towards premium and casual lifestyles. Other businesses within ABLBL posted 3% growth in Q4 with positive EBITDA, with these brands available across ~350 stores, while the innerwear business bolstered its reach by adding 1500+ MBOs to exit with 36,500+ trade outlets.
After the demerger, ₹1,000 Crore of the ₹3,000 Crore debt of ABFRL was shifted to ABLBL, enabling cleansing of balance sheets for both companies, while ABFRL will also raise ₹2,500 Crore within the next 12 months, backed by promoters, for future growth. The company will be left with a debt of ₹700-800 Crore now, which it aims to repay in the next two to three years.
The new structure gives each company independent capital paradigms and allows for more pointed strategic direction. The demerger positions ABLBL to focus on achieving stable growth and healthy profitability while leveraging its strong brand portfolio for expansion.
Kumar Mangalam Birla, Chairman, Aditya Birla Group, stated: "This moment marks both a recognition of the progress we have made and a clear signal of the scale of opportunity that lies ahead. India stands at the cusp of a transformative growth phase, with consumption poised to be a primary driver. ABLBL's foundation is built on enduring strengths that set it apart in a competitive market. Our ambition is clear: To build India's first portfolio of billion-dollar brands in fashion and lifestyle."
The ABLBL portfolio comprises India's leading lifestyle brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England, youth western wear (American Eagle), activewear & innerwear (Van Heusen innerwear), and sportswear (Reebok). Lifestyle brands are expected to witness stable growth rate, led by network expansion and mid-single digit SSSG growth, while other brands like Reebok and Van Heusen Innerwear will drive future growth.
Global brokerage firm Bernstein projected a fair value between ₹185-215 for Aditya Birla Lifestyle Brands, the demerged entity. JM Financial expects the ABLBL value to be ₹186 (23 times EV/EBITDA to lifestyle brands and 10x EV/EBITDA to other business on March 2027).
The company's strategic positioning in India's growing fashion and lifestyle market, combined with its strong brand portfolio and extensive retail network, positions it well for capitalizing on the country's consumption-driven growth phase. With independent operations and focused strategic direction, ABLBL is set to pursue aggressive expansion while maintaining operational efficiency and margin improvement.
