Aditya Birla Lifestyle Brands Faces 5% Drop After Demerger: What This Means for Investors

Shares of Aditya Birla Lifestyle Brands Ltd (ABLBL) started trading on the stock market this week after its spin-off from Aditya Birla Fashion and Retail. The company saw a rollercoaster trading day, with its stock quickly hitting both upper and lower limits.

On its debut, ABLBL opened at ₹167.75 and experienced a brief surge, reaching a high of ₹176.10 on the Bombay Stock Exchange (BSE). However, by the end of the day, it closed at ₹159.40, reflecting a 4.97% drop. On the National Stock Exchange (NSE), it opened at ₹167 and also closed at ₹159, marking a 4.79% decrease.

ABLBL includes popular lifestyle brands like Louis Philippe, Van Heusen, Allen Solly, and Peter England, in addition to newer names like Van Heusen Innerwear, Reebok, and American Eagle. The company emerged from the demerger that occurred in May 2025. Shareholders of Aditya Birla Fashion and Retail received one share of ABLBL for every share they owned, incentivizing those invested in its parent company.

Motilal Oswal Financial recently gave ABLBL a Neutral rating with a target price of ₹190. They predict that due to less discounting and a better channel mix, ABLBL’s gross and EBITDA margins could grow significantly by FY28. They estimate a cumulative free cash flow of ₹1,100 crore for the years 2025 to 2028, which may allow ABLBL to be a cash-positive company in the near future.

However, there are some clouds on the horizon. A lack of consumer demand could slow down their store expansion plans and affect same-store sales growth. Other risks include rising rental and labor costs and the potential for poor investment decisions.

In a related note, the stock of Aditya Birla Fashion and Retail (ABFRL), which closed at ₹74.65 on the BSE, increased by 1.21%.

As the market evolves, these developments highlight the need for investors to stay informed about shifts in consumer behavior and economic conditions that can impact retail performance.

For more on emerging trends in the retail sector, you can explore reports from reliable sources like Nielsen or McKinsey & Company.

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