Aditya Birla Lifestyle Brands Gets CRISIL AA+ Rating As Revenue Rises To ₹6,222 Crore In FY26

· Free Press Journal

Mumbai: Aditya Birla Lifestyle Brands Limited has secured strong credit ratings from CRISIL, underlining its established position in India’s apparel retail market and the financial backing of the Aditya Birla Group.

CRISIL Ratings has assigned a CRISIL AA+/Stable rating to the company’s proposed Rs 500 crore non-convertible debentures. The agency also reaffirmed its CRISIL AA+/Stable rating on ABLBL’s bank facilities and CRISIL A1+ rating on its Rs 1,000 crore commercial paper programme. In addition, the rating on an earlier Rs 500 crore non-convertible debenture issue was withdrawn at the company’s request in line with CRISIL’s policy on rating withdrawals. The ratings reflect the company’s strong operating position, diverse brand portfolio, and financial flexibility within the Aditya Birla Group.

Revenue growth supports performance

During the first nine months of fiscal 2026, ABLBL reported revenue of Rs 6,222 crore, up about 6 percent from Rs 5,888 crore in the corresponding period of the previous year. Growth was supported by sustained expansion in the retail and wholesale channels of the lifestyle business, which recorded year-on-year growth of around 8 percent and 9 percent, respectively.

The company’s operating profitability also improved, with operating profit rising to Rs 1,054 crore from Rs 940 crore in the same period a year earlier. This translated into an operating margin of around 15.9 percent, supported by improved inventory management, closure of unviable stores, and improved profitability in the Reebok franchise business.

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Multi-brand strategy drives scale

ABLBL’s strong market position is supported by its portfolio of well-known brands, including Louis Philippe, Van Heusen, Allen Solly, Peter England, American Eagle, Forever 21, and Reebok. The Madura division remains the company’s core apparel business and continues to expand across multiple price segments and distribution channels.

As of December 2025, the company operated 3,315 brand stores across more than 785 cities and towns in India, with a retail footprint of about 4.8 million square feet. A significant portion of these outlets operates under a franchise model, helping maintain an asset-light business structure.

Strong financial profile and outlook

CRISIL said the company’s financial risk profile remains robust, supported by a healthy capital structure, strong cash generation, and comfortable debt protection metrics. Interest coverage stood at about 3.8 times during the first nine months of fiscal 2026 and is expected to remain between three and four times over the medium term.

The rating agency expects ABLBL to maintain stable operating performance, supported by its strong brand equity, expansion into new markets, and growth in segments such as innerwear and athleisure wear. ABLBL, which was recently demerged from Aditya Birla Fashion and Retail Limited, now houses lifestyle brands including Van Heusen, Louis Philippe, Peter England, and Allen Solly, along with other fashion labels such as American Eagle, Forever 21, and Reebok.

Disclaimer: This article is based solely on the credit rating rationale issued by CRISIL Ratings Limited and the regulatory disclosure made by Aditya Birla Lifestyle Brands Limited. No external sources have been used, and the information presented reflects only the contents of the referenced document.

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