Aditya Birla Fashion and Retail Ltd received a tax demand notice totaling ₹16.4 million from authorities, likely related to GST or income tax assessments. The company plans to challenge the order, maintaining no material financial impact amid robust festive season performance.
Notice Breakdown
Aditya Birla Fashion (ABFRL), a leading apparel retailer with brands like Pantaloons and ethnic wear labels, disclosed receipt of a ₹16.4 crore demand notice on December 9, 2025. The order pertains to routine tax scrutiny, common in retail amid complex supply chains and ITC claims. ABFRL, part of the Aditya Birla Group, asserts strong merits for appeal.
Key Highlights
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Demand Value: ₹16.4 million total liability across tax, interest, and potential penalty components.
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Regulatory Context: Follows similar notices in FY25; retail sector faces heightened GST audits on e-commerce and multi-state operations.
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Company Response: Evaluating appeal options; provisioned adequately with no expected P&L hit.
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Business Resilience: Q2 FY26 revenue up 15% YoY at ₹1,500 Cr+; EBITDA margins stable at 8-10%.
Strategic Outlook
ABFRL's focus remains on luxury expansion and digital sales growth, undeterred by procedural tax matters.
Sources: BSE/NSE Filings, Economic Times, Moneycontrol.