Motilal Oswal cuts Aditya Birla Fashion target to Rs 65 on debt drag, despite Q4 beat

Brokerage trims TP from Rs 70 to Rs 65 and stays Neutral. Pantaloons growth, TCNS loss reduction, and TASVA/OWND scale-up underpin a 13% revenue and 25% Ebitda CAGR through FY26-28E, but elevated net debt and unlikely pre-IND AS Ebitda breakeven by FY28 cap upside.

— Source publishedWed, 27 May, 2026, 11:03 IST·First seen Wed, 27 May, 2026, 11:42 IST·Source NDTV Profit

What happened

Aditya Birla Fashion and Retail (ABFRL) · Motilal Oswal trims Aditya Birla Fashion target to Rs 65 from Rs 70, citing higher net debt despite strong Q4.

Key facts

  • TP Rs 65 (from Rs 70)
  • 13% revenue CAGR FY26-28E
  • 25% Ebitda CAGR
  • 9x EV/Ebitda Pantaloons
  • 13x ethnic

Why this matters

Persistent debt overhang and delayed pre-IND AS Ebitda breakeven sharpen the case for portfolio rationalization or a strategic capital infusion to unlock the TASVA/OWND scale-up optionality.