(INCLUDING MANAGEMENT DISCUSSION AND ANALYSIS)

Dear Members,

Your Company's directors hereby present the 18^th Annual Report in the form of 2^nd Integrated

Report together with the audited financial statements of the Company for the financial year ended March 31, 2025 ("year under review/ FY 2024-25").

The year under review unfolded against a backdrop of moderate global economic recovery amidst inflationary pressures and geo-political instability. While inflation showed signs of easing; heightened geopolitical tensions, trade barriers, and policy uncertainties—exacerbated by major election cycles in key economies —added layers of unpredictability. Monetary policy, particularly interest rate adjustments, remained a central focus for several major economies.

According to the IMF's April 2025 World Economic Outlook, global GDP growth is projected at 2.8% for 2025 and at 3.0% for 2026, indicating a moderate but steady growth rate. Global inflation is expected to continue its downward trend, but geopolitical tensions and trade uncertainties remain significant risks to the global economy. Navigating this turbulent landscape shall demand strategic agility and resilience, and a keen focus on delivering consistent growth while adapting to shifting global currents.

Notably, India continues to outpace other major economies, reaffirming its position as the world's fastest-growing large economy amidst global headwinds. It has seen rise in consumer spending led by rate cuts, easing inflation and slew of government measures. However, discretionary spending patterns remain uneven, reflecting shifts in consumer priorities at different points in time and economic uncertainties.

India's economy exhibited strong resilience amid global headwinds, achieving an estimated real GDP growth of 6.5% in FY 2024 25, according to the Ministry of Statistics and Programme

Implementation. Growth was primarily driven by robust expansion in the services and construction sectors, alongside a recovery in manufacturing and domestic consumption.

India's economic outlook for FY 2025 26 remains broadly positive, with growth expected in the range of 6 7%, supported by resilient domestic demand, government capital expenditure and a strong services sector. The broader sentiment continues to be positive, despite some moderation in urban consumption and investment activity. Easing inflation, a positive monsoon outlook, and recent personal tax cuts/rebates have boosted consumer confidence, which is likely to spur household spending—a crucial driver of India's economic growth. Structural reforms and accommodative monetary policy are also expected to play a supportive role in sustaining economic momentum. In June 2025, the RBI cut the key repo rate to 5.5%, signaling a growth-oriented stance. Coupled with liquidity infusion measures, the move is aimed at boosting demand and encouraging investment. Ongoing reforms in infrastructure and labor markets, along with the government's focus on capital expenditure, are expected to support long-term growth.

Over time, rising urbanization, a growing middle class and increasing disposable incomes are expected to drive sustained consumption growth in India. Continued improvements in infrastructure, digital connectivity, and financial inclusion are expanding market access, particularly in semi-urban and rural areas. Additionally, investments in education and skill development are gradually enhancing productivity and supporting higher household incomes, laying a strong foundation for broad-based consumption-led growth.

Despite global uncertainties, India's economic outlook remains promising, supported by strategic policies, accommodative monetary measures and robust domestic demand.

The global apparel industry, valued at $1.84 trillion in 2025, demonstrated strong resilience, successfully navigating a year of economic headwinds and geopolitical uncertainties. Brands that embraced operational flexibility, diversified supply chains, and accelerated digital expansion outperformed competitors. Consumer preferences shifted towards value-for-money offerings, premiumization and multi-purpose apparel, fueling recovery across categories. Looking ahead, the industry is projected to grow to $1.9 trillion by 2026, driven by:

New consumption hotspots emerging in regions like South Asia, Southeast Asia, and South America

Sustained momentum in omni-channel retail

Rising demand for sustainable and ethically produced fashion

Increased preference for comfort-led, versatile designs

Brands that proactively align with these trends—prioritizing innovation, supply chain agility, and customer-centric strategies—will be best positioned to capture future growth and strengthen market leadership.

The Indian apparel industry experienced a moderate recovery in FY 2024 25, aided by easing inflation and a gradual uptick in consumption demand. However, the recovery remained uneven, with the sector continue to grapple with challenges such as inconsistent footfalls, reliance on occasion-driven purchases and subdued urban discretionary spending.

In response, retailers adopted a more structured approach to growth, focusing on store footprint optimization, enhancing omni-channel capabilities and tightening inventory management to preserve margins and reduce overstock risks. Consumer engagement strategies also evolved, with brands investing in personalized and narrative-driven merchandising and curated assortments to deepen brand affinity.

The Indian apparel market reached 9.3 lakh crore in FY 2025, registering a CAGR of 11% since FY 2019. The market is expected to surpass 14 lakh crore by FY 2030, fueled by rising disposable incomes, rapid urbanization, growing brand consciousness, and the continued expansion of organized retail and e-commerce—particularly across semi-urban and lower-tier cities. Technological advancements are also accelerating this growth trajectory. Innovations such as virtual try-ons, AI-driven product recommendations, and personalized shopping experiences are reshaping consumer interactions while helping brands improve operational efficiency, reduce returns, and drive conversion rates. As digital adoption deepens and consumer expectations evolve, brands that leverage technology, invest in innovation, and build agile supply chains with robust inventory and demand management capabilities will be best positioned to capture the next wave of growth in the Indian apparel sector.

The fashion industry can be categorized into five key themes, each driven by unique factors and poised for significant growth.

1. Western Wear: Sustained momentum driven by urbanization, rising workforce participation and global fashion influence.

2. Value Fashion: Strong relevance continues due to price-conscious consumers, wider retail reach, and efficient sourcing.

3. Ethnic Wear: Remains central to occasion-led demand, blending traditional preferences with modern design.

4. Luxury Fashion: Steady growth supported by rising affluence, aspirational buying, and digital access to premium brands.

5. Digital Fashion: Gaining early traction as virtual platforms evolve, with long-term potential in immersive retail and brand engagement.

Rising demand for quality, service consistency, and brand trust is accelerating the move from unorganized to organized retail, especially in Tier II & III cities. Organized players are expanding footprint aggressively, innovating better store formats, rolling outloyalty programs and driving omnichannel integration. This shift is also formalizing supply chains, improving compliance and driving higher customer lifetime value.

Young consumers are driving trend-led, expressive fashion, pushing brands toward faster product cycles, influencer collaborations, and cultural relevance. They demand authenticity, inclusivity, and real-time trend adoption, reshaping how brands design and communicate. Social commerce and creator-led content are now central to brand discovery and purchase decisions.

AI-powered recommendations, virtual try-ons, and personal shopping services are reshaping retail, offering tailored experiences and deeper loyalty. Brands are blending digital convenience with in-store personalization, creating hybrid experiences that drive engagement. Experiential retail is emerging as a differentiator, making shopping more immersive and interactive.

Technology is streamlining design-to-delivery with digital sampling, 3D prototyping, and demand forecasting—boosting agility and reducing waste. This enhances speed to market and minimizes inventory risk, critical in a fast-evolving fashion landscape. Data-driven merchandising is enabling smarter, more profitable decision-making at scale.

Brands are shifting from traditional marketing to story-driven, interactive digital engagement via social media, influencers and communities. Content creation is now two-way, with consumers co-creating trends and narratives alongside brands. Always-on digital marketing keeps brands relevant and constantly connected with consumers.

Sustainability is now a core business priority, with brands adopting eco-friendly sourcing, responsible production, and transparent ESG reporting. Consumers are actively choosing brands with visible sustainability credentials, forcing the industry to take tangible decisive steps towards sustainability.

Apparel players are diversifying into innerwear, footwear, accessories, and beauty, building broader lifestyle portfolios and unlocking new growth. This strategy enhances wallet share, reduces category dependency and creates ecosystem stickiness. Cross-selling and bundling are becoming integral to driving higher transaction values and customer retention.

A key strategic milestone in FY 2025 was the successful demerger of Aditya Birla Lifestyle Brands Limited (ABLBL) from Aditya Birla Fashion and Retail Limited (ABFRL), effective May 1, 2025. This transformative move resulted in the creation of two independent focused entities - ABFRL and ABLBL - each enabled to pursue a clear and distinct strategy and unlock differentiated value for stakeholders.

Together, the two entities comprehensively cover the entire fashion landscape—ABLBL driving growth in the western wear category, while ABFRL expands its leadership across masstige/ value retail, ethnic, luxury, and digitally-led brands. This dual-entity structure allows the Aditya Birla group to cater to diverse consumer segments, offering both established market-leading and emerging fashion brands.

Both businesses are now at a strategic inflection point, supported by a proven and successful playbook, with the following capabilities in place to drive their next phase of growth.

Post-demerger, ABLBL operates a robust portfolio of lifestyle brands, including market-leading names such as Louis Philippe, Allen Solly, Van Heusen, Peter England, and Simon Carter, alongside youth-focused American Eagle, sportswear brand Reebok, and innerwear business under Van Heusen Innerwear. The company's strategy is centered on scaling core brands, expanding product portfolios, and deepening distribution across channels—driving sustainable, long-term growth in the premium lifestyle space.

In the years leading up to the 2000s, Louis Philippe, Van Heusen, Allen Solly, and Peter England established a dominant presence in India's formal and premium office wear segment. Each brand successfully carved out a unique niche, strategically catering to distinct consumer needs. In 1999, the Aditya Birla Group (ABG) acquired Madura Garments, gaining ownership or exclusive licensing rights for all four brands. By 2004, the business transitioned from a wholesale-driven model to a retail-led strategy, rapidly expanding its exclusive brand outlet network and deepening direct consumer engagement. Over time, the brands expanded beyond their formalwear roots, entering casual wear, sportswear, kids wear, and women's apparel, broadening their relevance in everyday fashion. The group further ventured into the innerwear category with Van Heusen, building a trade-led distribution model, and later diversified into youth western wear and sportswear by adding global brands like American

Eagle and Reebok to its portfolio.

Today, Aditya Birla Lifestyle Brands Limited (ABLBL) operates as a formidable premium lifestyle platform, participating in a large and growing total addressable market (TAM) with a proven and scalable operating model.

Over the years, the business has achieved a leadership position, consistently delivering:

Steady revenue growth

Strong and stable profitability

Positive cash flow

High Return on Capital Employed (ROCE)

In addition to its core categories, ABLBL has strategically expanded into high-growth segments such as innerwear, sportswear, and youth casual wear, positioning itself for continued momentum.

Post de-merger and listing, ABLBL is set for the next phase of growth, suitably funded by internal cash generation. The Company is targeting to double its size over the next five years, aiming for double-digit CAGR alongside improved profitability. Having consistently delivered positive operating cash flows (pre-Ind AS), it now aspires to become a dividend-distributing entity soon and plans to achieve a debt-free status within next 2 3 years.

ABLBL stands today as India's most formidable premium lifestyle brand platform—built on the backbone of strong operational excellence perfected over years and powered by strong brands, innovation led culture and industry leading talent.

ABLBL continued to demonstrate a robust and profitable growth trajectory, with a marked improvement in performance during the second half of the year. The business delivered mid single-digit like-to-like retail growth, driven by consistently robust retail execution, continued product innovation, and a sharp focus on enhancing customer experience. At the same time, the company strategically rationalized low-margin channels and enhanced the overall quality of its distribution network. ABLBL reported normalized revenue of 7,830 crores with an normalized EBITDA margin of

16.2%, a 100-bps improvement over the previous year. Full year revenue under discontinued operations stood at 7619 Cr. As on March 31, 2025, ABLBL had a retail space spanning over 4.6 million sq.ft. across India, further a strong network of 3,253 brand stores and presence across 38,000+ multi-brand outlets and 7000+ shop-in-shop across departmental stores.

a) Lifestyle Brands

Your Company's Lifestyle Brands segment comprises four of India's most iconic apparel brands Louis Philippe, Van Heusen, Allen Solly, and Peter England. Each brand is uniquely positioned to cater to diverse consumer preferences across formal and casual wear categories, while consistently reinforcing their distinct value propositions:

Louis Philippe: Lead excellence in fashion, responsibly

• Van Heusen: Empower achievers to build a better world

• Allen Solly: Make dressing-up fun, responsibly

• Peter England: Make High-Quality Fashion affordable

With one of the strongest and most versatile brand portfolios in the Indian fashion industry, the Lifestyle Brands segment continues to set industry benchmarks and redefine market standards. Spanning multiple categories, price points, and consumer occasions, the brands have maintained deep-rooted consumer trust and aspirational appeal, reaffirming their salience amongst Indian shoppers.

In FY25, the Lifestyle Brands delivered a revenue of 6,575 crore and an EBITDA margin of 19.3%, reflecting both operational excellence and brand strength

Despite a challenging external environment, the Lifestyle Brands have retained leadership across core categories, driven by:

Timeless design and innovation

• Consistent product upgradation with modern blends and premium finishes

• A differentiated brand identity and strong customer recall

The brands have strengthened their portfolio by catering to a broad spectrum of price points, while actively pursuing product premiumization and category expansion. This includes deeper plays in casual wear, wedding collections and non-apparel segments, ensuring relevance across evolving consumer needs.

Aligned with a strategy of profitable expansion, the Lifestyle Brands undertook multiple initiatives in FY25:

Product premiumization to drive higher value per transaction

• Markdown management to protect margins and reduce discount dependency

• Rationalization of low-profitability channels and selective network optimization

These measures have contributed to robust like-to-like sales growth while continuously improving the profitability profile of the business.

As of March 31, 2025, the Lifestyle Brands network includes 2,900+ stores (including value stores), a franchisee-led expansion model supporting scalable growth and a robust omnichannel ecosystem, integrating offline and digital retail for seamless consumer engagement.

The Lifestyle Brands continue to stand as a testament to the Company's legacy of innovation, quality and customer-centricity. As India's fashion landscape evolves, these brands are well-positioned to lead the next phase of growth—shaping consumer preferences, redefining trends, and setting new standards for how India dresses.

*excluding value stores b) Emerging Brands

American Eagle has continued to strengthen its foothold in the Indian market, building on its global reputation for trend-driven, comfortable casualwear. The brand's positioning resonates deeply with India's young, aspirational demographic, quickly establishing it as one of the top choices for premium denim and casual fashion in the country. In FY25, the brand recorded impressive double-digit year-over-year growth, fueled by robust like-to-like retail performance and an expanding distribution footprint.

Today, American Eagle operates 68 stores across 30+ cities, alongside a growing presence in over 200 departmental stores and multi-brand outlets. This expanding geographic footprint reflects the brand's rising popularity and increasing traction among Indian consumers.

Reebok a globally recognized sportswear brand, continues to make strong strides in the Indian market with its high-performance footwear, apparel, and accessories. Since its acquisition in FY2022, Reebok has significantly strengthened the company's presence in the youth-oriented activewear segment, complementing the lifestyle portfolio with its rich heritage in fitness, innovation, and athleisure.

Operating on a well-established and profitable retail model, Reebok has witnessed renewed consumer interest, fueled by the rising adoption of active lifestyles and the growing focus on health and wellness across both urban and semi-urban markets. In FY25, the brand expanded its footprint by opening 25 new stores, taking its total presence to over 170 exclusive outlets nationwide.

Over the past year, Reebok has strategically diversified its product range across key categories such as walking, running, training, and lifestyle wear, while reinforcing its positioning in the fast-growing athleisure market. Innovations like MAXFOAM+,

SPACEFOAM for Women, ZIGNITION, FLOATZIG, and NANOGYM have further elevated its appeal amongst India's fitness-conscious and style-driven youth.

Van Heusen Activewear, Athleisure and Innerwear

Your company's foray into the innerwear and athleisure segment through Van Heusen

Innerwear & Athleisure has witnessed noteworthy success since its launch in 2016. The brand has rapidly scaled operations, driven by a sharp product strategy, continuous innovation and strong channel execution. Today, Van Heusen's innerwear and athleisure range is available across 36,500+ trade outlets and 100+ Exclusive Brand Outlets (EBOs), with an additional 1,500+ new counters added in FY25. The brand also maintains a strong presence across leading departmental stores and e-commerce platforms, driving comprehensive consumer coverage across channels.

Van Heusen Innerwear offers a thoughtfully curated collection for men, women, and kids, blending stylish designs with advanced product features that prioritize comfort, fit, and everyday wearability. The brand continues to drive growth in this segment through fabric innovation, ergonomic fits and category expansion. Key product innovations include Classic+, Vitals, Layer Zero, and Invisibles, each catering to specific consumer needs while maintaining the brand's hallmark of sophistication and quality.

Marketing efforts have been significantly scaled up, with national television campaigns and strategic collaborations with influencers to amplify brand reach and deepen consumer engagement. These initiatives are crafted to enhance Van Heusen's visibility in tis category and strengthen its connect with India's evolving lifestyle-conscious audience.

By seamlessly combining style, comfort, and functionality, Van Heusen Innerwear &

Athleisure is well-positioned to capture the growing demand in India's premium athleisure lifestyle and fitness apparel market.

The demerged Aditya Birla Fashion and Retail Limited (ABFRL) is at a pivotal growth phase, with its diverse portfolio spanning both high-growth traditional categories such as ethnic and western wear, and emerging, previously underpenetrated segments like Gen Z fashion and luxury apparel. Each business vertical is steadily scaling towards its full potential, positioning the company to capture significant market opportunities across India's evolving fashion landscape.

In its new structure, ABFRL emerges as a high-growth fashion platform with a multi-vertical architecture, targeting diverse consumer segments: o Masstige & Value Fashion: Led by Pantaloons and Style Up, offering aspirational yet affordable fashion to a broad customer base o Ethnic Portfolio: India's most expansive ethnic wear collection spanning everyday wear to occasion wear—features exclusive collaborations with designers like Sabyasachi, Tarun Tahiliani, House of Masaba, and Shantnu & Nikhil, along with premium brands such as TCNS, TASVA, and Jaypore o Luxury and Super Premium: Rapidly scaling through The Collective, a curated set of luxury mono brands and the launch of Galeries Lafayette, marking a significant step in building India's luxury fashion ecosystem o TMRW: A pioneering digital-first platform nurturing a portfolio of emerging fashion and lifestyle brands, targeting digitally native, modern consumers.

With a sharpened brand portfolio, strong balance sheet, and consistent margin momentum,

ABFRL is evolving into one of India's most versatile and dynamic multi-format, multi-brand fashion platforms. In short span of time, we have successfully built

The largest ethnic wear portfolio

A leading luxury retail platform

A dominant masstige and value retail presence

The largest digital-first brands portfolio

The company's long-term vision is to achieve & strengthen its market leadership across all key segments in the next 5 10 years, firmly positioning itself at the forefront of India's growing fashion and lifestyle industry.

1) * FY25 PAT includes exceptional gain of Rs. 161.55 Crs.

2) Also, please note FY24 and FY25 financials are not comparable on account of De-merger and Merger in FY24 & FY25.

To support its ambitious growth plans and strengthen long-term financial health, ABFRL successfully raised 4,239 Cr during the year. This included a preferential issue of 2,379 Cr, led by the promoter group and a marquee foreign investor. The promoter's participation at a significant premium underscore their strong conviction in ABFRL's value creation potential. In addition, the Company raised 1,860 Cr through a Qualified Institutional Placement (QIP), which saw an overwhelming response from leading domestic and international investors, with the issue being ~2x oversubscribed. This reflects investors' confidence in both India's fashion industry growth and ABFRL's distinctive leadership position. The capital is being strategically deployed to drive business expansion and reduce debt, laying a strong foundation for sustained growth.

In FY25, ABFRL continued its strong growth trajectory, driven by a clear strategy of profitable scale-up across multiple business formats. Operationally, ABFRL delivered solid results in FY25, achieving revenues of 7,355 Cr, reflecting a 14% year-over-year increase. The company also reported a significant comparable EBITDA margin expansion of 220 basis points to 10.3%, despite navigating a challenging consumption environment. This improvement highlights effective cost management, operational efficiency and focused execution. a) Masstige Value and Retail

Pantaloons has cemented its position as one of India's most trusted and dynamic brands in the masstige fashion segment, offering an extensive and diverse portfolio of apparel, accessories, and footwear for men, women, and children. For over 25 years, the brand has catered to India's growing middle-class consumers, delivering a combination of affordability, fashion-forward designs, and quality across the length and breadth of the country.

In FY25, Pantaloons segment reported revenues of 4,373 crore, while delivering an EBITDA margin of 16.9%, marking a robust ~400 basis point improvement over the previous year.

The Pantaloons format delivered an operating margin of 18%, underscoring the success of disciplined retail execution, improved private label contribution, reduced markdowns, and stringent cost optimization. This performance reflects the brand's consistent ability to balance scale, affordability and fashion relevance in a dynamic and competitive market.

A core strength of Pantaloons lies in its robust portfolio of private labels, which span multiple categories and deliver trend-led, value-rich products. These private brands drive consumer loyalty, differentiation, and profitability, positioning Pantaloons as a one-stop destination for aspirational yet accessible fashion. The brand continues to innovate product offerings, enhance price-value propositions, and upgrade its retail identity to remain aspirational for the evolving Indian consumer.

As of March 31, 2025, Pantaloons' loyalty program boasts a 16.7 Mn member base, reflecting strong customer affinity and long-term engagement with the brand.

Pantaloons operates through a wide retail network of 405 stores across India. Over the past two years, the brand has rationalized and optimized its store network to align with evolving market dynamics, while recalibrating its growth strategy to focus on driving same-store sales growth and selective store expansion in targeted markets. Simultaneously, it has strengthened its supply chain and planning processes, resulting in improved inventory management, enhanced customer experience and better operational agility. Through digitized in-store experiences, the brand is creating a seamless, modern shopping journey focused on convenience, engagement and consumer delight.

The brand's youthful, contemporary, and vibrant imagery further reinforces its commitment to delivering accessible, stylish fashion to a broad and aspirational customer base. With its wide assortment of merchandise across private label and complimentary external brands, 16Mn+ strong loyalty members, agile supply chain, strong vendor base and best in class planning processes, Pantaloons is well-positioned to consolidate its leadership in India's masstige fashion segment.

Style Up, your company's strategic foray into the value fashion segment, continued to gain strong traction in FY24-25, evolving into a key growth lever within ABFRL's diversified brand portfolio. Targeted at aspirational, budget-conscious consumers, the brand bridges the gap between affordability and contemporary fashion, offering trend-driven products in a market space traditionally dominated by unorganized players. By combining sharp price points, quality merchandise, and fashion relevance, Style Up aims to elevate the value shopping experience, particularly for Gen Z and young consumers.

The brand's proposition is anchored in a carefully curated product range, delivered through elevated retail formats that go beyond typical value retail environments. Style

Up leverages backend integration with Pantaloons to drive operational efficiency and optimize supply chain processes, while a highly experienced team steers its execution strategy. This combination allows the brand to maintain a nimble and scalable business model focused on both customer experience and profitability.

In FY24-25, Style Up delivered a ~70% year-over-year growth, reflecting growing consumer acceptance. The brand also reported steady improvements in key performance metrics, including better sales per square foot, enhanced store-level profitability and an overall improvement in operating efficiency. With 40 50 additional stores planned for FY26, Style Up will continue to evaluate and refine its operating model before pursuing aggressive expansion in the years following FY26.

b) Ethnic wear Brands

The ethnic wear market is India's largest apparel category, and the share of the organized segment within this market is growing rapidly. Previously dominated by unorganized players, this shift offers significant opportunities for branded players. Additionally, there is a notable transition from tailored wear to ready-to-wear garments, which is driving this segment. To capitalize on these trends, your company had implemented a clear and distinct strategy for success in each segment. Consequently, your company built the most comprehensive ethnic wear portfolio through both organic and inorganic means, catering to various key occasions and price points. This comprehensive approach will help build a strong leadership position in future.

Our ethnic wear business has firmly established itself as a powerful growth engine within

ABFRL's portfolio. Today, we house the largest and most comprehensive ethnic brand portfolio in the Indian fashion industry, spanning designer led and premium segments. This scale, combined with sharp execution and deep consumer resonance, has enabled us to consistently deliver double-digit growth across quarters. i) Designer-Led Brands

Sabyasachi continues to redefine Indian luxury by blending intricate heritage craftsmanship with contemporary design, offering a curated portfolio of bridal wear, men's wedding attire, occasion wear, jewelry, and accessories. In FY25, the brand continued its strong growth momentum, delivering solid double-digit profitability and reinforcing its dominant position in the luxury segment. The brand also celebrated its 25th anniversary, unveiling a collection of western wear, jewelry, and accessories—further evolving its portfolio with a more contemporary edge. Domestically, Sabyasachi expanded its footprint with the launch of an exclusive apparel and accessories store in Hyderabad. Internationally, the brand reinforced its global luxury presence through collaborations with the MET Gala, Printemps Doha, and Bergdorf Goodman, while also operating exclusive stores in New York and Dubai.

With this momentum, Sabyasachi continues to solidify its status as a leading Indian-inspired global luxury brand, combining cultural authenticity with global aspiration.

Tarun Tahiliani, one of India's most celebrated designers, is renowned for blending rich Indian craftsmanship with contemporary silhouettes, creating timeless couture and occasion wear. ABFRL increased its stake to 51% in the brand, adding another marquee name to its luxury ethnic portfolio, reinforcing its leadership in India's premium and luxury fashion landscape. In FY25, the brand delivered ~40% revenue growth over last year, along with strong double-digit profitability, further strengthening its position in the luxury fashion segment. The couture collection is available across six exclusive stores, while the brand expanded into the affordable luxury space with the launch of its first pret label, ‘OTT by Tarun Tahiliani,' store in

Gurugram, capturing a broader aspirational audience.

House of Masaba a young, aspirational, and digitally native brand, is rapidly redefining the affordable luxury space across fashion and beauty. In FY25, the brand delivered

65% revenue growth. A strong digital-first strategy contributed to over 45% of total sales, while the brand's retail footprint expanded with 5 new stores, taking the total to 20. Bridal wear, launched recently, has been gaining steady traction and now accounts for an increasing portion of brand's fashion portfolio. Its beauty and personal care line, ‘Lovechild', scaled to 4x over the previous year as it continued to broaden its portfolio with innovative products and significantly expanded its offline presence, being available now in 40+ outlets/kiosks nationwide. House of Masaba is growing quickly, attracting strong consumer interest and staying committed to offering trendy, affordable luxury—making it a standout name in both fashion and beauty.

Shantnu & Nikhil have established a strong presence in contemporary and luxury fashion with a portfolio that spans designer ceremonial wear for men and women, now available across 21 stores. Their couture line is complemented by S&N by Shantnu Nikhil, an affordable luxury pr?t label recognized for its superior product quality and value. Further diversifying their offering, the Shantnu Nikhil Cricket Club (SNCC) introduces a unique sport-inspired lifestyle collection under the S&N brand, merging fashion with athletic influence to engage a wider audience. Together, these brands create a balanced aspirational ecosystem with clear brand and product segmentation, while leveraging multiple growth channels including e-commerce and wholesale to expand market reach. Strong brand storytelling focused on product excellence and fashion-forward aesthetics continues to reinforce Shantnu & Nikhil's position as leaders in India's contemporary and luxury fashion landscape.

TASVA introduced in FY22 through a strategic partnership with Tarun Tahiliani, marked your Company's foray into the premium men's ethnic wear market. The brand offers a distinctive blend of exquisite craftsmanship and contemporary design, providing high-quality ceremonial wear for Indian men at accessible price points. Since its inception, TASVA has rapidly scaled to around 70 stores across India, achieving 44% growth over last year, driven by a strong 12% like-to-like growth. In addition, TASVA has successfully established a strong foothold in the top wedding markets across major metro cities and remains focused on expanding its presence in key wedding destinations nationwide. Continuous product innovation, at the back of customer feedback and market insights, has further enhanced TASVA's value proposition. To build brand salience and deepen consumer engagement, the brand launched high-impact multimedia campaigns, invested in targeted marketing and actively collaborated with the broader wedding ecosystem. This has resulted in growing preference of the brand amongst Indian consumers.

TCNS Clothing Ltd became part of ABFRL in FY25, after ABFRL acquired a 51% controlling stake in September 2023, significantly strengthening its position in the women's ethnic and fusion wear market. TCNS houses a diverse portfolio of brands—W, Aurelia, Wishful, Folksong, and Elleven—that collectively cater to a broad range of consumer needs, from everyday ethnic wear to premium occasion-driven fashion. The company has also extended into adjacent lifestyle categories such as footwear, jewelry, and cosmetics, further strengthening its market relevance. Today, TCNS operates through a robust retail network of around 500 exclusive brand outlets, along with extensive distribution via large format stores, multi-brand outlets, and digital platforms. The business did face certain operational and structural challenges during the transition; however, several of these have already been resolved. While TCNS saw a revenue decline during the year due to a planned distribution rationalization, the strategy is now nearing completion. Despite the transitional phase, the business achieved 4% like-to-like growth, signaling growing consumer acceptance for the brands. The business made a strategic pivot in product development, introducing refreshed and updated merchandise. The launch of new fusion and occasion wear collections for Spring-Summer 2025 has received a positive market response, further reinforcing brand salience. With a revitalized portfolio, optimized distribution and improving consumer momentum, TCNS is well-positioned to deliver sustainable, profitable growth, with significant EBITDA improvement expected in the years ahead.

Jaypore is India's leading premium artisanal brand, offering a curated collection of apparel, jewelry, and accessories that celebrate the country's rich and diverse cultural heritage.

With a presence across 29 exclusive stores in 10+ cities, complemented by a robust e-commerce platform, Jaypore provides a seamless omnichannel shopping experience, blending tradition with modern retail convenience. In FY25, the brand delivered ~14% year-over-year revenue growth, with retail sales rising over 20%, driven by expanding consumer demand and improving store productivity. This growth, coupled with scale-driven operating leverage, has led to steady improvements in profitability. To further strengthen brand engagement, Jaypore launched influencer-led campaigns throughout the year, significantly enhancing visibility and aspiration amongst its consumers. These initiatives have reinforced Jaypore's leadership in the premium artisanal space, successfully housing heritage craftsmanship within contemporary retail environment.

c) Super Premium and Luxury Retail

The super-premium and luxury market in India continues to expand, fueled by the rising per capita, secular trend of premiumization and the rise of experience-driven consumer purchases. Despite broader market fluctuations, demand for high-end products has remained relatively resilient, as affluent consumers increasingly prioritize quality, exclusivity and immersive retail experiences.

Your company's luxury portfolio includes The Collective, one of India's largest multi-brand luxury and bridge-to-luxury retailers, alongside select mono-brand partnerships with global icons such as Ralph Lauren, Fred Perry, Ted Baker, and Hackett London. As luxury consumption matures across new geographies, the total addressable market for super premium and luxury fashion is poised for significant expansion. The Collective continues to deliver sustainable and profitable growth, offering a curated selection of exclusive global brands under one roof, supported by a best-in-class retail experience. The brand's e-commerce platform, thecollective.in, is fast evolving into a leading online destination for luxury and bridge-to-luxury fashion, expanding accessibility and catering to a wider, digitally savvy audience. A comprehensive collection of accessories—including watches, shoes, ties, belts, bags, wallets, jewelry, and sunglasses—further enriches the portfolio, offering customers a complete luxury lifestyle experience. In FY25, the super-premium and luxury segment grew by 13% year-on-year, driven by strong e-commerce momentum (15%+ growth) and expansion into new cities and markets, taking the total store count to 41. Strategic investments in novelty styles, womenswear, and accessories have further strengthened the brand's relevance and growth.

Your company remains focused on delivering exceptional customer experiences, from the discovery and trial journey to personalized service and relationship-building, reinforcing loyalty in this high-value segment.

ABFRL's partnership with Galeries Lafayette marks a significant new chapter in its luxury strategy playbook. The upcoming flagship store in Mumbai, currently under development, will feature over 200 global luxury brands, establishing itself as a world-class destination for luxury shopping in India. The store is set to open to customers by the end of the year.

d) TMRW: A portfolio of digital-first brands

The Indian e-commerce market is on track to reach USD 350 billion by FY30, driven by robust fundamentals such as a growing affluent consumer base, rising internet and smartphone penetration fueled by low data costs, and cost-effective logistics infrastructure. Further accelerating this growth are digital payments, easy credit access, and the convenience of online shopping, all of which have led to the rise of numerous digital-first brands across categories.

To capitalize on this rapidly expanding market, your company launched TMRW in April 2022, with the vision of building digital-native consumer brands tailored for Gen Z and millennials. TMRW operates on a ‘Brand Builder' model, leveraging proprietary data science-led technology to provide centralized growth platform for its brands. This platform delivers end-to-end support in design, product innovation, operations, sourcing, branding, marketing, and community building, ensuring that each brand is well-positioned for scale and long-term success.

The TMRW portfolio not only targets large, established categories but also focuses on emerging high-growth segments such as athleisure, activewear, expressive wear, and accessories. In FY25, the portfolio achieved 55% growth year-over-year. The growth was fueled by category and channel expansion, premiumization of offerings, and high-impact marketing campaigns and collaborations.

A key growth driver has been the scaling of offline presence in select, curated locations.

Brands like Bewakoof, The Indian Garage Co (TIGC), and Nobero expanded into physical retail. TMRW now operates 16 stores across 7 cities. Additionally, this year TMRW added WROGN to its portfolio through a minority stake, diversifying its brand portfolio. Operational excellence remains at the core of TMRW's strategy, with a tech-led on-ground execution model driving continuous improvements in supply chain efficiency, sales performance metrics, and customer experience. These efforts are gradually building a scalable, next-generation platform poised to create dynamic, youth-centric brands that cater to the evolving preferences of India's digital-first consumers.

1. Accelerate growth of core brands and expand market share

Our Lifestyle Brands continue to execute a multi-pronged growth strategy, expanding across diverse product categories and consumer segments. While men's wear remains the core, we've made strong strides into casual wear, women's wear, kids wear, wedding wear, accessories, and non-apparel, broadening our portfolio to attract new consumers and enhance customer lifetime value. A key focus remains on expanding into untapped and high-potential markets, complemented by efforts to deepen consumer engagement through compelling storytelling and community-building initiatives. Simultaneously, investments in strengthening brand.com platforms with hyperlocal, personalized experiences are set to elevate the digital journey, enabling stronger consumer connections and driving sustained growth.

2. Build Powerful Brands in targeted New High Growth Segments

Our strategic approach is aimed towards building a leadership position in large total addressable markets and high growth segments through strong and distinct brands. We have identified key growth areas including innerwear, sportswear and denim wear, where we have already established a meaningful presence via brands Van Heusen, Reebok and

American Eagle.

Reebok is set to drive rapid retail expansion in India while continuously innovating in high-performance products. American Eagle will prioritize expanding its distribution network through Exclusive Brand Outlets (EBOs) and Large Format Stores (LFS). Van Heusen Innerwear will continue to expand its trade network while scaling a profitable retail model.

We are well-positioned to have a significant play in casual wear segment through our diverse brand portfolio of leading brands.

3. Expand our Distribution Footprint

We have built a comprehensive and robust distribution network that spans both offline and online channels, ensuring widespread accessibility of our brands across the country.

Our offline presence is among the largest in the western branded apparel space, with a growing number of exclusive brand outlets strategically located nationwide. As of March 2025, our retail network includes 3250 stores, covering ~4.6 Mn sq.ft. Additionally, our brands are present in various multi-brand outlets and shop-in-shops within large-format departmental stores, enabling deep market penetration and visibility.

Having established a strong footprint in our core markets, we are now focused on expanding into newer geographies, particularly those with rising fashion aspirations and growing consumer spending. Our brand equity, combined with high customer recall and loyalty, serves as a strong foundation as we enter untapped regions. Tier II and III cities represent a significant growth opportunity. These markets are benefiting from steady improvements in infrastructure, lifestyle and digital adoption, making them increasingly relevant to India's consumption story.

4. Continue to Focus on Product Innovation and Upgradation in Established and Emerging Categories

We continue to place strong emphasis on product innovation and enhancement to ensure our offerings remain high-quality, trend-right, and aligned with evolving consumer expectations. This focus spans both our well-established categories and high-growth emerging segments, supported by consistent investments in research and development to create functional, stylish, and comfort-driven products.

Our Lifestyle Brands are leading the way in introducing new, trend-forward product extensions. For instance, Indo-fusion collections offer a fresh, modern reinterpretation of traditional wedding attire—bridging the gap between ethnic aesthetics and contemporary styling. Peter England has ventured into sports-inspired collections, seamlessly blending athletic functionality with everyday fashion. Reebok, known for its performance-driven apparel, continues to push boundaries with innovative gear tailored for both fitness enthusiasts and casual wear. Van Heusen Innerwear's ‘Air Series' emphasizes lightweight, breathable comfort. Across all our brands, there is a strong focus on youth-centric designs, ensuring they remain relevant and appealing to today's fashion forward consumers. From occasion wear to casual and formal apparel, every brand under ABLBL is committed to offering something unique and tailored to its target market, ensuring they maintain a leadership position across diverse fashion segments.

5. Technology and Digital-Led Continual Improvement in Operating Efficiency

A core pillar of our growth strategy is the continued deployment of technology-driven solutions to enhance operational efficiency and improve customer experience across both retail and e-commerce ecosystems.

By leveraging predictive analytics and AI, we are automating critical functions such as

Assortment planning, Buying decisions and Markdown and pricing optimization. We are investing in Product Lifecycle Management (PLM) systems to streamline operations, reduce lead times, and improve supply chain agility. Our demand-driven auto-replenishment models and next-generation warehouse management systems support the scalable growth of offline & online operations and ensure prompt, omnichannel fulfillment.

We are scaling initiatives such as Buy Online, Ship-from-Store and multi-warehouse fulfillment optimization, building a faster, more reliable and cost-effective delivery network. Through this ongoing digital transformation, we are creating a tech-enabled, customer-centric retail organization that is agile, scalable and well-positioned to thrive in the rapidly evolving fashion and retail landscape.

1. Scale the well-crafted portfolio across key fashion consumption themes

We have established a strong presence across key themes in the fashion industry masstige and value fashion, digital, luxury and ethnic wear—each offering distinct opportunities for growth. Backed by a diverse portfolio of brands and retail formats, we are uniquely positioned to cater to a wide spectrum of consumer preferences and needs.

The time is now to capitalize on the strength of the portfolio and leverage the unique growth drivers within each segment. By building market leadership across these themes, we can unlock sustained growth, improve profitability and achieve higher market multiples.

2. Accelerate Growth of established brands within the portfolio

In the masstige segment, Pantaloons continues to be a powerful growth engine, serving the evolving needs of aspirational and value-conscious consumers. The brand's refreshed retail identity and the introduction of new private labels have further sharpened its appeal, while its commitment to delivering trend-led, quality fashion at affordable price points reinforces its position as a modern and accessible fashion destination for India's growing middle class. Looking ahead, Pantaloons will focus on strategic store expansion, delivering a seamless and distinctive store experience to elevate consumer engagement and strengthen brand loyalty. At the same time, the brand is focused on optimizing processes across the value chain, refining its revenue-cost model, and building a sustainable and efficient business model poised for long-term success.

Our acquisition of TCNS Clothing has bolstered our leadership in premium women's ethnic wear, where brands like W and Aurelia command strong consumer recall and distribution strength. Following the acquisition, the business is undergoing a strategic transformation aimed at building a strong foundation to unlock substantial growth opportunities in the future.

3. Build Powerful Brands and Retail Concepts in Identified New High Growth Segments

Our growth strategy is anchored in building a strong presence across large, high-growth addressable markets, backed by a portfolio of distinct and purpose-led brands. We are actively expanding into key segments such as luxury fashion, ethnic wear, value retail and the direct-to-consumer (D2C) ecosystem — all of which represent compelling long-term opportunities.

Ethnic and Occasion Wear

Ethnic wear accounts for approximately 27% of India's total apparel market, with the organized segment expected to grow significantly faster than the overall category (Source: Wazir Report). Our diversified ethnic wear portfolio is well-positioned to capitalize on this trend. Through strategic partnerships with renowned Indian designers and in-house brands, we are capturing demand across premium and value formats. o Our designer brands are well positioned to take advantage of the large and growing luxury wedding and occasion wear market through its product offerings across apparel, accessories, jewelry and beauty. o Brands like Wishful, Folksong and Elleven within the TCNS portfolio are currently focused on evaluating their respective markets and establishing a stable foundation. Once this is achieved, they plan to scale and expand beyond their current footprint. o TASVA is poised for aggressive expansion with plans to reach 250+ stores by 2030, with a compelling value proposition centered on refined products offered in an elevated retail environment. The brand is set to scale rapidly, aiming to capture a significant share of the wedding and festive wear markets.

• Value Segment

India's value segment is undergoing rapid formalization, driven by urbanization, rising incomes, aspirational consumption and a growing preference for branded apparel, where consumers increasingly seek premium design at accessible price points. Style Up, our play in value fashion space, is gaining traction and is positioned for faster scale-up. Our distribution capabilities, planning processes, focus on quality and strong customer loyalty programs reinforce our ability to make branded fashion accessible to millions across India.

• TMRW: Direct to Consumer (D2C)

IThrough TMRW, we are building a house of digital-first brands that address both emerging and large online-first categories in the fashion space. TMRW's portfolio spans diverse consumer needs, with each brand sharply focused on evolving fashion needs of young consumers.

TMRW's portfolio brands are expected to drive the next phase of growth through continued channel and category expansion. The brands will scale further across both D2C platforms and online marketplaces, complemented by a widening offline retail presence. Growth will also be fueled by the launch of new product categories and a premiumization strategy, focusing on high-value offerings to enhance brand equity and margins.

To support this expansion, TMRW is expected to raise external funding ensuring it is well-capitalized to meet the growth ambitions of both the platform and its portfolio brands.

• Luxury and Super Premium Fashion

India's luxury market is witnessing robust growth, led by increasing disposable incomes and a shift in lifestyle aspirations. Our premium and luxury portfolio has emerged as one of our fastest-growing verticals, driven by both online and offline expansion. o Our multi-brand retail format, The Collective, along with select mono-brand stores, has achieved consistent double-digit growth with improved profitability.

Growth will be driven by the expansion of womenswear and accessories, a stronger e-commerce presence and deepened consumer connections. o To further strengthen our luxury presence, we have entered into a landmark partnership with Galeries Lafayette, the iconic French department store chain.

This collaboration will see the launch of flagship stores in premium locations across India, offering a curated multi-brand experience spanning fashion, accessories, beauty and lifestyle.

Our strategic focus across these high-opportunity segments — supported by targeted brand positioning, retail innovation and omnichannel engagement — reinforces our ambition to build category-leading platforms and future-ready fashion businesses at scale.

4. Expand our Distribution Footprint

We have a robust distribution network spanning both offline and online channels. As of March 2025, the de-merged ABFRL network comprises 451 Masstige and Value Retail Stores, 659 Ethnic Brand Stores, 41 Luxury Retail Stores and 16 TMRW Brand Stores (excluding WROGN stores). In addition to these formats, the company maintains a significant presence through 1,632 shop-in-shop counters in departmental stores and 276 multi-brand outlets (MBOs). ABFRL's total retail footprint has expanded to 7.3 million sq. ft., reflecting its continued growth and strong presence across diverse retail formats.

Several of our brands are in the early stages of their growth journey and are poised for expansion into new markets and geographies. These upcoming brands will be strategically scaled to capture growth opportunities in both existing territories and untapped regions. Following the completion of its distribution rationalization, TCNS is set to embark on its next phase of expansion. The focus will be on strengthening its presence in the right locations within current core markets, while also venturing into new markets, particularly in semi-urban and lower-tier cities, to broaden its consumer base.

Similarly, both Style Up and TASVA are gearing up for accelerated growth. With rising consumer traction and increasing brand loyalty, both brands are preparing for aggressive store expansion to deepen market penetration and cater to evolving customer demand.

TMRW brands are gearing up for strategic offline expansion, with a focused approach to entering key markets through select retail formats, aimed at deepening consumer reach and strengthening brand presence across high-potential regions.

Additionally, our portfolio of designer and luxury brands will continue to expand their footprint both in domestic and international markets, focusing on key high-potential locations to reinforce their luxury positioning and capture global demand for Indian luxury fashion.

5. Leverage Synergies from our Portfolio

The strength of our portfolio lies in the seamless integration of interconnected capabilities, enabling us to build a more agile and efficient operational framework. By harnessing synergies across business divisions, we drive enhanced sourcing efficiency, cross-utilization of manufacturing facilities, streamlined planning, and stronger negotiation leverage—allowing us to achieve cost-effectiveness and precision at scale. Additionally, by leveraging enriched customer insights from a unified data ecosystem, we can make smarter, real-time decisions and deliver personalized consumer experiences that foster deeper engagement and long-term brand loyalty. This synergy-driven approach positions us to deliver superior value, drive sustainable growth, and maintain a competitive edge in an increasingly dynamic retail and fashion environment.

6. Strategic capital allocation

De-merged ABFRL operates in multiple high-growth segments, featuring brands that are still in the early stages of development. These emerging brands will require significant capital investment to fuel their growth, scale operations, navigate the competitive landscape and achieve their full potential. The objective is to nurture these brands through, providing them with the resources needed to accelerate their growth journey. By investing strategically in these high-growth opportunities, the goal is to transform these developing brands into robust, cash-generating assets in the future. This balanced capital allocation strategy not only will support the sustained growth of mature brands, but also ensures that emerging brands are positioned to contribute significantly to the portfolio's long-term financial health and value creation plans.

A challenging consumption environment, our businesses have demonstrated strong resilience, delivering on our strategy of driving profitable growth. With the demerger now complete, we stand as two focused, well-capitalized entities, each strategically positioned to embark on its own high-growth journey.

We remain highly optimistic about the future of India's fashion and apparel sector, supported by a robust economic outlook, rising per capita GDP, growing discretionary spending, and the accelerated shift from unorganized to organized retail. These powerful tailwinds will continue to drive sustained sectoral growth in the years ahead.

Our "where to play" strategy is now fully in place, executed through a combination of organic and inorganic initiatives, and centered around five high-growth consumption themes. We have built a comprehensive portfolio that includes:

The largest western wear portfolio in India

The largest ethnic wear portfolio

A leading luxury retail platform

A dominant masstige and value retail presence

The largest digital-first brands portfolio

With meaningful presence across key strategic fashion spaces, our focus is now on "how to win." This entails driving organic growth, maintaining a strong balance sheet and improving operating performance while reinforcing the foundational competitive strengths that will help us create long-term value.

ABLBL, backed by a robust brand portfolio, a network of 3,200+ stores, and healthy free cash flows, is well-positioned to double in scale and expand margins over the next few years. Simultaneously, ABFRL, with a well-diversified brand portfolio, a comprehensive presence across all key high-growth segments, and a gross cash balance of 2,350 crores, is set to unlock its next phase of growth over the next five years.

ABFRL continued on its overall digital and technology transformation roadmap during the current FY25. The major projects include:

Consolidation of the Pantaloons earlier version of SAP instance along with the ABLBL SAP instance into a single instance of S4 Hana Fashion Vertical Business (FVB) across ABFRL, hosted on public cloud environment. This now enables the base platform to streamline and optimize various supply chain and finance processes across the company

Completion of the systems standardization across all designer-wear subsidiaries on a common ERP/ POS platform

D365 Point-of-sale (POS) is being implemented across all the newly added businesses such as Reebok and TCNS

Ethnic wear brands Jaypore and Tasva launched their Ecommerce business with own website and in marketplaces, on the ABFRL E-commerce platform Building extensive data analytics and AI capabilities remains a top priority, with initiatives including:

Implementing demand forecasting models to enhance merchandise planning and sourcing efficiency.

Enhancing the markdown management system across brands to optimize discounting strategies

Leveraging Generative AI models to assist designers in rapidly developing new product designs, fostering greater design diversity and reducing time-to-market.

Automating attribute data generation and product descriptions for e-commerce catalogues using Visual AI and Generative AI Language models.

Launching clienteling tools for store associates to engage effectively with customers, leveraging insights into their profiles, past purchases, and personalized product recommendations.

The focus going forward will be on leveraging the new generation technology platforms to drive business process automation and optimization with focus on delivering business value. The key initiatives planned include

Setting up the ERP/ POS/ E-commerce systems for the launch of the Galeries Lafayette business with implementation of a new Product Life Cycle management and Supply

Chain management tools in the ABLBL business

Scaling down legacy on-premise data centre along with migration to public cloud and scaling down support services

Enhancing omnichannel capabilities by enabling in-store services like hyperlocal quick-commerce and self-service checkout

Focus on E-commerce growth and cost optimization by leveraging analytics, marketing automation

Implementation of RFID for merchandise management in Pantaloons and international business

Driven by the Group Purpose of building trust and enriching lives, our vision is"to passionately fulfil consumer needs in fashion, style, and value across wearing occasions in apparel and accessories through solid brands and a high-quality consumer experience, with the ultimate purpose of delivering superior value to all our stakeholders".

The corner stone of delivering the vision is to build an organisation and culture wherein people are obsessed with delivering value to all stakeholders and live by the ABG Values. Our People Vision is ‘To nurture a trust and impact led culture that enriches lives'. This vision inspires us to build a workplace where trust is the foundation, individuals feel empowered, and every contribution drives meaningful impact. We are deeply committed to building a workplace where talent thrives, ideas flourish, and individuals are empowered to grow.

1. Talent Management and Career Growth o Internal Talent Mobility: Several of our employees transitioned to new roles & open positions, reflecting our commitment to nurturing internal talent o Young Talent Development: In line with our vision of nurturing emerging talent, we welcomed 70 Striders on 24th June 2024 through our Stride Young Talent Management Training Programme o Talent Councils: These forums actively review our talent pipeline, succession plans, and development interventions to ensure robust leadership development.

2. Learning and Development o At ABFRL, we are deeply committed to nurturing the potential of our people by fostering a culture that prioritises employee experience, well-being, and continuous learning. As part of this commitment, we follow Aditya Birla Group's dedicated

Continuing Education Policy (CEP) that supports our employees through continuous learning. This initiative reflects our Employee Value Proposition offering "A World of

Opportunities" to our managerial cadre. o Capability Building Academy: Mentorship at ABFRL is structured as a developmental journey, offering guided growth experiences for employees. Learning is further anchored by our internal capability-building ecosystem. Our internal academy supports learning through programs like ACE (Aligning Career Aspirations with Functional Development) and Digital Academy (focusing on digital marketing, SEO, and AI). These platforms host a variety of leadership development programmes tailored to different career stages.

3. Rewards and Recognition o Total Rewards Approach: We maintain a balanced approach to compensation and benefits, incorporating fixed pay, variable incentives, long-term benefits and recognition programs. Our performance appraisal process is supported by two dedicated HRMS platforms, each tailored to the needs of distinct employee groups. o Non-Discrimination: Ensuring fairness in pay decisions based on performance, potential, and market standards, with specific measures for scenarios like maternity leave and talent mobility. o Employee Recognition Celebrating success through platforms like the Aditya Birla

Awards, ABFRL Awards and business specific awards, recognizing outstanding contributions across the organization

4. Enrich Your Life o Work-Life Balance: Policies such as flexible work arrangements, work-from-home options, and supportive leave policies contribute to a healthy work-life balance. o Employee Wellness: Initiatives under the ABFRL Wellness Studio (ABW) promote physical, mental and financial well-being. The ABW app ‘Multiply' offers a comprehensive suite of wellness solutions such as Wellness Saver Cards, Active

Age programmes, stress assessments, free counselling services with doctors, and complimentary gym memberships.

5. Communication and Engagement o Social Media Engagement: Achieved 700k followers on LinkedIn and 24k on

Instagram (@lifeatabfrl), enhancing our digital presence and employee engagement o Internal Communication: Utilizing platforms like town halls, internal journals, and surveys to foster open communication and gather employee feedback These initiatives underscore our commitment to creating a supportive and enriching workplace environment at ABFRL, where every employee can thrive and contribute to our shared success.

Through continuous improvement and strategic HR initiatives, we aim to sustain our growth momentum and reinforce our position as an employer of choice in the industry.

As a responsible consumer-centric organisation guided by the Aditya Birla Group's key principles since its inception, sustainability has been deeply ingrained in your company business strategy and is fundamental to ABFRL's endeavours. As the market leader, your company prioritises meeting consumer demands by striving to deliver products with better environmental and social footprints.

Your company believes that economic growth must be achieved in synergy with environmental and societal interests. Thus in 2013, your company embarked on a structured sustainability programme, ‘ReEarth for our Tomorrow' which comprised of 10 Missions namely Energy, Carbon Footprint, Green Building, Water, Waste, WASH Pledge, Safety, CSR, Packaging and Sustainable Products with annual targets, clear responsibilities and timelines. ReEarth is a movement to give back more than we take from the ecosystem.

After achieving significant milestones in 2021, your company embarked on ‘ReEarth 2.0', shifting focus from being process-led to product-led with a 2025 agenda that emphasises product design and development, customer-centricity, and supply chain sustainability. Your company has put in place a strong governance mechanism that effectively oversees its sustainability agenda and goes beyond just meeting compliance requirements. The Management Committee periodically reviews sustainability strategy and initiatives, while the Risk Management and Sustainability Committee (RMSC) monitors and reviews the risk management plan and other delegated functions related to sustainability. Organisational risk and governance practices are mapped in-line with the Task Force on Climate-related Financial Disclosures (TCFD) and Committee of Sponsoring Organisations (COSO), globally accepted climate risk framework and Enterprise Risk Management framework respectively.

Your company is committed to transition to sustainable fashion by building adaptable and flexible high-performance business models, promoting life cycle thinking, sourcing responsibly, embracing circular economy principles, and ultimately mitigating or eliminating negative impacts on the environment caused by the use of fossil fuels. ‘Zero Waste to Landfill' has been achieved across operations and going forward, your company is exploring innovative ways to reuse production line waste in inhouse products, thereby reducing ever increasing demand for raw materials. ABFRL maintained the water positive status across our own operations and 75% of water recycled in own facilities. In Occupational health and safety your company archive zero fatality and successfully conducted 19,549 man-days of safety trainings. In Product stewardship your company achieved 94% sustainable packaging and 93% of garments have at least one sustainability attribute. Your company also participates in and collaborates with various global platforms and ESG indices, such as CAIF, UNEP, SAC, ZDHC, SU.RE, CII, FICCI, IACC, and S&P Global. These strategic collaborations and participations have helped your company stay relevant by ensuring alignment with global as well as national sustainability agendas. Across the years, your company's sustainability journey has been widely appreciated and has garnered global recognition and accolades. This year too, your company received accolades from prominent forums and organisations. Some of the notable instances include:

Integrated Reporting: Released first Integrated Annual Report (IR), showcasing commitment to transparency as per national and international standards. The IR undergo third-party type II (Moderate) assurance of non-financial data through British Standards

Institution in line with Assurance Standard (AA1000AS) and Business responsibility and Sustainability Report (BRSR) core with reasonable assurance.

S&P Global CSA Score: Achieved an S&P Global - DJSI CSA Score of 83, ranking highest in India and 4th globally in the retail sector.

MSCI ESG rating upgraded from BBB to AA rating.

Circularity Leadership: Released a Circular Guideline and Manifesto through the GIZ-ABFRL develoPPP project, focusing on sustainable textiles in India.

SBTi target Validation: Became the first Indian retail company with validated near-term carbon reduction targets via SBTi.

ABFRL sustainability case study published in Harvard Business Publishing Education ‘Aditya Birla Fashion and Retail: Stitching Sustainability'.

Green Initiatives: Received CII IGBC Gold Score for green village model

Transitioning to achieve net-zero emissions is an essential component of your company's 2030 and 2050 agenda. Over the years, adopting various initiatives across Scope 1 & 2 emissions and initiating dialogues with stakeholders to mitigate Scope 3 emissions across the ecosystem has been the prime focus.

Your company is near the conclusion of 2025 goals, the next phase is a future-facing, impact-led framework designed to meet the scale and urgency of today's challenges. It sharpens the strategic intent, deepens the ESG integration, and aligns transformation journey with global imperatives. It will encourage to use sustainability thinking to explore opportunities, improve operations, and support long-term value creation.

As your company transition to Sustainability 3.0, we are redefining boundaries, setting ambitious goals, and embracing our responsibility to shape a sustainable future. Our vision for 2030 isn't just aligned with global climate goals—it is a bold declaration of our intent to lead with purpose and impact, focusing on below key areas: Net-Zero & decarbonisation, Circularity by design, empowered communities, Health safety & well-being, Technology & Digitisation.

At ABFRL, sustainability and fashion are not a paradox, and over the years, sustainability has been integrated into the brand and embedded in the business core. Your company is committed to maintain its unwavering focus on sustainable fashion and plans to leverage innovation and technology as catalysts for the journey ahead.

Your Company recognizes the importance of a robust governance structure and effective risk management in ensuring sustained performance and growth. An integrated approach has been adopted, combining the COSO framework with the Task Force on Climate-related

Financial Disclosures (TCFD), to strike a balance between financial, social, and environmental priorities. This approach aligns risk management with performance and strategy, delivering long-term value to stakeholders.

To oversee the identified risks and mitigation plans, a dedicated Risk Management and

Sustainability Committee (RMSC) has been established. The committee, supported by the Chief

Risk Officer, Head of Sustainability, and Risk Management Committees, continuously monitors and evaluates risks from strategic, operational, financial, environmental, and compliance perspectives. Internal and external business environments are carefully monitored to identify potential risks and opportunities.

Periodic assessments by the established committees and internal functions ensure ongoing evaluation of risks. Mitigation plans are implemented to manage key risks and minimize residual risks, safeguarding the company's interests. This proactive risk management approach provides the foundation for effective decision-making and resilience in the face of evolving challenges.

1. Navigating through a low demand phase

Fluctuations in domestic demand, coupled with inflationary pressures and rising household debt, have impacted consumer sentiment and purchasing behavior.

Despite these headwinds, your company's diversified portfolio spanning occasions, categories, and price points—allows it to serve a wide customer base. Continuous innovation and trend-driven designs keep offerings relevant and engaging, helping to retain or grow market share even in a subdued economic environment.

2. Adapting to Evolving Consumer Behavior

Changing consumer preferences, driven by shifting lifestyles and technological advancements, are reshaping purchasing habits. The growing fashion consciousness across diverse socio-economic segments is poised to significantly influence future consumption trends.

In response, your company has expanded its portfolio by launching new product lines and category extensions, tailored to different use-cases, consumer segments, and price brackets—ensuring relevance across a wide spectrum of shoppers.

3. Ensuring Data Security and Resilience

Greater reliance on digital technologies introduces risks such as cyberattacks, data breaches, system downtime and other vulnerabilities, posing both financial and reputational threats.

To mitigate these risks, your company has implemented robust measures including

Disaster Recovery (DR), Business Continuity Planning (BCP), Data Loss Prevention (DLP), and Security Information and Event Management (SIEM) systems. Ongoing monitoring, employee training, and a strong incident reporting framework further reinforce cybersecurity.

4. Building and Retaining a Thriving Workforce

As the company scales across multiple verticals—design, retail, marketing, e-commerce, and more—there is an increasing need for skilled talent. In India's competitive fashion retail sector, attracting and retaining top professionals is a key challenge.

To address this, your company has embraced industry-leading HR practices and developed a structured talent strategy. Through focused retention programs and leadership development initiatives, the company nurtures future leaders while maintaining a motivated workforce.

5. Managing Retail Space Constraints and Costs

The availability of premium retail spaces is increasingly constrained due to rising demand from other retail sectors. This has led to higher rental costs and tougher negotiations. Your company proactively builds strong partnerships with mall owners and developers to secure long-term leases. Additionally, efforts to revamp retail identity, refresh stores and improve customer navigation contribute to an enhanced in-store experience and better space utilization.

6. Competing in a Highly Dynamic Market

India's fashion market is characterized by intense competition from both domestic and international brands, leading to pricing pressure, heavy discounting, and risks of market share erosion.

To stay ahead, your company focuses on continuous product innovation, delivering differentiated customer experiences, and strengthening brand equity. These efforts, tailored to consumer needs, help build long-term relationships and secure a competitive edge in the market.

(Amount in Rs. Crore)

* Includes other income of 77 Crore (Previous year: 100 Crore) in standalone Financial Statements ("FS") and

78 Crore (Previous year 100 Crore) in consolidated FS and excludes exceptional items in both.

(Amount in Rs. Crore)

Notes:

(1) Includes other income of 198 Crore (Previous year: 121 Crore) in standalone FS and 196 Crore (Previous year:

138 Crore) in consolidated FS and excludes exceptional items in both.

(2) Net working Capital

(Amount in Rs. Crore)

(3) Investments includes 2,302 Crore towards investments in Subsidiaries and Joint Venture (Previous year:

1,790 Crore).

(4) As on March 31, 2025, goodwill (after testing for impairment in accordance with the Ind AS - 36 issued by the Institute of Chartered Accountants of India) stands at 1,995 Crore.

(5) In current year, Assets and Liabilities relating to discontinued operations have been transferred to Aditya Birla Lifestyle Brands Limited. Hence, current year numbers are not comparable with previous year.

During the financial year, your Company reported revenue of 5,609 Crore from Continuing Operations (previous year 5,202 Crore), recording a growth of ~8% over the previous year.

The EBITDA of the Company from Continuing Operations is 958 Crore (previous year 642

Crore). The EBITDA margin for the Company improved from 12.35% to 17.08% during the year.

The average borrowing cost for the Company increased to 7.55% (prior to demerger) as compared to 7.42% in the previous year. The finance cost of the Company is 447 Crore

(previous year 454 Crore), marginal decline on account of repayment of borrowing towards the end of financial year.

In view of accumulated losses, your Directors have not recommended payment of any dividend for the year under review.

Borrowings have decreased from 3,836 Crore in the previous year to 758 Crore. The Company has raised 3,160 Crore through fresh borrowings and have repaid borrowings of 5,387 Crore during the year. The Company has transferred 851 Crore to Aditya Birla Lifestyle Brands Limited ("ABLBL") during the year (pursuant to the Scheme of Arrangement between the

Company and ABLBL) with average borrowing cost at 7.55% (prior to demerger).

CRISIL Limited and ICRA Limited has assigned a new credit rating i.e. CRISIL AA+ and ICRA AA+ respectively, on Non-Convertible Debentures. The details of Credit rating as on March 31,

2025 are disclosed in the ‘General Shareholder Information' forming part of this Integrated

Annual Report.

The details of outstanding NCDs as on March 31, 2025 are disclosed in the ‘General Shareholder

Information' forming part of this Integrated Annual Report.

*Company has excess liquid Investment and cash over Its debt.

**For the purpose of calculating ratios for the periods upto March 31, 2025, all relevant amounts pertaining to continuing and discontinued operations have been considered.

The formulae used in the computation of the above ratios are as follows:

*Finance cost/interest comprise of interest expense on borrowing and excludes interest on lease liabilities and interest charge on fair value of financial institution.