Aditya Birla Fashion doubles down on TMRW, chases scale over profits

BENGALURU: Aditya Birla Fashion and Retail Ltd (ABFRL) is increasing investments in TMRW, its fast-growing portfolio of digital-first lifestyle brands, by prioritizing scale over short-term profitability.

TMRW sees the next two years as “foundation years” as it scales brands, categories and channels ahead of a larger profitability push in fiscal 2020, said Prashanth Aluru, co-founder and CEO of TMRW. Mint in an interview.

The strategy comes even as TMRW continues to make losses despite rapid growth. The business recorded 29% year-on-year revenue growth. ₹242 crore in the December quarter, while EBITDA (earnings before interest, tax, depreciation and amortization) losses narrowed marginally ₹57 crore ₹62 crore a year ago.

“We continue to invest in new channels and new categories,” Aluru said. “We are investing some of our profitability growth back into the business.”

In the nine months to December TMRW’s revenue increased by 31% compared to the previous year ₹662 crore, but EBITDA losses widened ₹182 crore. In its December quarter investor presentation, ABFRL said TMRW’s losses had “now peaked” and margins had increased by around 900 basis points year-on-year. A basis point is one hundredth of a percentage point.

The company is aggressively expanding its omnichannel presence through private label outlets, direct-to-consumer platforms and newer distribution experiments such as express commerce. Aluru said four TMRW brands – Bewakoof, Wrogn, The Indian Garage Co and Nobero – have already entered offline retail and the company ended FY26 with around 125 stores across brands.

Mumbai-based fashion retail chain reports consolidated net loss ₹An increase of 137 crore in the December quarter ₹103 crore a year ago was under pressure due to the impact of TMRW’s losses.

ABFRL’s push for TMRW is significant as the broader brand house model, once seen as the next big wave in consumer startups, now faces increasing scrutiny globally and in India.

“The model itself is a zero-sum game,” said Ankur Bisen, senior partner at retail consultancy The Knowledge Company. “So far there are no conclusive examples of the model working.” In its latest earnings presentation, ABFRL noted that the overall demand environment throughout the period was weak, while accelerating commerce and omnichannel retail emerged as key drivers of growth.

At 13:08 on Tuesday, ABFRL shares traded at: ₹62.79 per capita on BSE, up 1.3%.

Multi-channel approach

TMRW argues that its strategy is fundamentally different from previous brand aggregators because it focuses entirely on fashion and lifestyle and develops long-term operating capabilities rather than simply bundling brands together.

“We always believed that a few big brands would create lasting value,” Aluru said.

The company currently has three brands in the market. ₹300 crore range and other three as well ₹75-200 crore range according to Aluru. His basic thesis is that young digital-first brands often struggle to scale beyond a certain point because they lack the operational strength needed for expansion.

TMRW believes it can solve this problem through centralized investments in technology, artificial intelligence (AI), supply chain, product development and omnichannel distribution. raised ₹437 crore from ServiceNow Ventures in August 2025 to scale technology capabilities.

“We have always felt that it is more advantageous to invest horizontally in multiple brands rather than a single brand being able to get there,” Aluru added.

The company is increasingly prioritizing direct-to-consumer channels and private label outlets over market-driven growth. Aluru said marketplaces remain important, but the focus is on building stronger consumer loyalty and repeat purchases through owned channels.

While about 70% of Bewakoof’s business now comes through the app, he said some other brands are also rapidly scaling their app-focused businesses.

Community-led engagement has also become central to TMRW’s strategy. While Bewakoof leans heavily on fandom and pop culture, Nobero focuses on travel and sports communities, Wrogn positions itself around sports, fitness and youth identity beyond the celebrity appeal of cricketer Virat Kohli.

The company is also identifying newer growth opportunities in the fashion space. Aluru noted that activewear and “minimalist mainstream fashion” are significant growth opportunities, especially for consumers looking for affordable alternatives among global premium brands and mass-market players.

Technology is another important area of ​​focus. AI is increasingly shaping everything from demand sensing and product launches to marketing, coding and operational automation, Aluru said. “We want to be a leading player in fashion technology,” he said.

increased skepticism

Even as TMRW expands, industry experts remain unconvinced about whether the brand house model can work sustainably at scale in India.

Knowledge Company’s Bisen argued that the most successful brand house businesses have historically emerged from digital-first ecosystems with strong online consumer acquisition engines, giving them a structural advantage over legacy offline retailers that will enter the space later.

“If you’re an offline-first player, then you start with a handicap,” he said.

He also questioned whether ABFRL had a different “right to win” in the category, especially as competition from platforms like Myntra, Nykaa Fashion and Reliance Retail intensified.

The biggest challenge, according to Bisen, is consumer stickiness. “The most important criterion will be repeatability,” he said. “Are consumers coming back?”

This challenge is particularly acute in youth fashion, where trends move quickly and loyalty remains weak. Bisen also added that macroeconomic uncertainty and pressure on discretionary spending could make scaling premium fashion businesses even more difficult over the next few years.