Shares of Aditya Birla Fashion and Retail Ltd (ABFRL) tumbled sharply on June 4, 2025, after reports of multiple block deals in the counter, wherein Flipkart has likely offloaded a significant portion of its stake in the company.
According to CNBC TV-18, 10.66 crore shares of the Aditya Birla Fashion and Retail changed hands via block deals, amounting to 8.75 per cent of the total outstanding equity.
The retail major’s stock dropped as much as 8.9 per cent intraday to touch a low of ₹78.30 on the BSE, nearing its 52-week low of ₹77.25 recorded in March 2025.
Media reports last evening suggested that Flipkart Investments Private Ltd, a subsidiary of e-commerce giant Flipkart, is looking to exit approximately 6 per cent of its holding in ABFRL through a clean-out block trade. Goldman Sachs is reportedly acting as the investment banker facilitating the transaction.
According to sources familiar with the matter, the floor price for the deal has been set at ₹79.5 per share—marking a 7.6 per cent discount to the previous closing price. The estimated size of the block deal stands at about $68 million (approximately ₹600 crore).
ABFRL’s financials
The timing of Flipkart’s stake sale has caught investor attention, especially given ABFRL's ongoing efforts to turn around its financials. In its March quarter (Q4FY25) earnings, ABFRL reported a narrowed consolidated net loss of ₹23.55 crore, a significant improvement from a loss of ₹266.36 crore in the same period last year. The company’s revenue from operations grew to ₹1,719.48 crore, up from ₹1,575.12 crore a year ago. Total expenses for the quarter stood at ₹1,959.53 crore.
However, ABFRL noted that the Q4 results are not fully comparable year-on-year due to the demerger of its Madura Fashion & Lifestyle business.
Despite these challenges, ABFRL remains a prominent player in the Indian retail landscape, housing an array of marquee brands across various segments. These include mass-market labels like Pantaloons, premium and ethnic fashion under TCNS Clothing, designer lines such as Sabyasachi and Tarun Tahiliani, and international luxury formats like The Collective and the soon-to-be-launched Galeries Lafayette.
Looking ahead, the company’s management is eyeing a revenue compound annual growth rate (CAGR) of 20 per cent between FY25 and FY30. It also aims to deliver a positive EBITDA margin of 7 per cent by FY30, a significant shift from current negative margins.
Stock performance under pressure
ABFRL’s stock has seen considerable volatility in recent months. After posting modest gains of 5.8 per cent and 2.8 per cent in March and April 2025, respectively, the stock fell 10.6 per cent in May. Over the past year, the scrip has lost more than 19 per cent. The current price movement places it close to its 52-week low, well below the 52-week high of ₹121.74 hit in September 2024.
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