Aditya Birla Fashion and Retail dropped to a day low of Rs 57.50 on Monday after its June quarter net loss widened despite higher revenue.

The trigger was the company’s Q1FY27 numbers, which showed a familiar pattern for ABFRL this year: sales are growing, but the bottom line keeps slipping further into the red.

Revenue from operations rose 10.6% year-on-year to Rs 2,025.56 crore. The consolidated net loss, though, widened to Rs 248.73 crore from Rs 233.73 crore a year earlier.

Total expenses climbed 11.5% to Rs 2,395.45 crore, growing faster than sales. Higher finance costs and depreciation also chipped away at profitability, and the EBITDA margin came in lower than a year ago.

Pantaloons remained the biggest driver of growth, with revenue up 10% to Rs 1,204.39 crore.

Its value-format chain OWND expanded fast during the quarter, though that expansion came at the cost of near-term margins.

Due to this year’s altered wedding schedule, the demand for ethnic clothing decreased, resulting in a more moderate 10.1% growth in the Ethnic and Others section to Rs 830.79 crore.

There were a few bright spots buried in the numbers. TMRW, the company’s digital-first brands platform, kept narrowing its losses as it scales up, with revenue up 11% for the quarter.

The luxury business, home to labels like Galeries Lafayette and The Collective, posted revenue growth of around 30%, though costs tied to expanding that business ate into its margins.

Aditya Birla Fashion and Retail also kept expanding its physical footprint, adding more than 45 stores during the quarter and pushing its total retail area past 7.9 million square feet.

That expansion is part of why costs are rising faster than the company would like, even as the store additions set up future sales growth.

As of 10:55 am, the stock was trading at Rs 58.26 on the NSE, down 8.01% for the day. Markets were still open at the time, so this reflects the live price rather than the day’s close.

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