According to Kumar Mangalam Birla, Chairman of the Aditya Birla Group, the luxury retail sector in India is experiencing a turning point due to factors such as greater disposable income, more exposure to the outside world, changing customer goals, and an increase in the desire for high-end experiences.
According to Aditya Birla Fashion and Retail’s (ABFRL) integrated annual report, the luxury goods market is growing beyond traditional metropolitan areas, which presents a long-term opportunity for organised players that have strong brand partnerships, unique retail formats, and a lot of knowledge about their customers.
“Your company has established a strong presence in the super-premium and luxury market through its partnerships with The Collective, Mono Brands, and Galeries Lafayette,” he said.
According to Ashish Dikshit, Managing Director of ABFRL, the company’s luxury division kept growing in FY26 thanks to a portfolio that includes brands including Galeries Lafayette, The Collective, Fred Perry, Polo Ralph Lauren, Ted Baker London, Hackett (Mono Brands), and Polo Ralph Lauren. The Collective and Mono Brands both had positive like-to-like growth and contributed to a 9 percent increase in profitable revenue for the year.
Additionally, eight new stores were added to the company’s portfolio. According to the MD, Galeries Lafayette is just starting out, therefore right now ABFRL is concentrating on raising brand recognition, developing stronger alliances, improving the business model, and establishing Galeries Lafayette as a serious contender in the Indian luxury retail space.
With yearly revenue of Rs 2,227 crore, representing 14% year-on-year growth, the ethnic segment had a solid performance in FY26. The 5.60 basis point increase to 10.8% in the earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin is really impressive. Also, the company’s like-to-like growth rate for the year was 16%.
With the acquisition of more than 80 stores last year, our ethnic portfolio reached over 680 locations in strategic markets. “Our expanding reach allows us to cater to customers for all kinds of events, from weddings and celebrations to modern ethnic and casual wear,” the MD remarked.
Additionally, the premium ethnic brands portfolio, which includes TASVA, Jaypore, and TCNS, had a promising year. Both the quarterly and annual like-to-like growth for TASVA were in double digits, demonstrating the company’s continued growth pace. As the MD noted, the company will continue to expand carefully in high-potential locales, and its network already stands at 94 outlets. Strategic store development and excellent momentum across its online platforms drove significant double-digit growth for Jaypore.
