Go Fashion (India) (GOCOLORS) investor relations material

Executive summary

• Q1 FY26 revenue was INR 223 crores, broadly stable year-over-year, with gross profit at INR 140 crores and PAT at INR 22 crores; gross margin improved to 63% due to easing raw material costs and favorable product mix.

• Store network expanded by 27 new stores, reaching 803 total across 187 cities, with international expansion beginning in Dubai and positive initial traction.

• Same-store sales growth (SSG) declined by 2% due to softer footfalls, LFS business de-growth, and supply chain delays, though recovery was noted during EOSS.

• Unaudited Q1 FY26 results and key Board re-appointments, including a new director and secretarial auditor, were approved; a director resigned for professional reasons.

• Employee costs rose 9% due to new store additions and annual increments, with revenue remaining flat.

Financial highlights

• Q1 FY26 revenue: INR 223 crores; gross profit: INR 140 crores; gross margin: 63%; EBITDA: INR 69 crores (30.8% margin); PAT: INR 22 crores (10% margin).

• Cash and equivalents: INR 247 crores as of June 30, 2025, including mutual funds and FDs.

• ROCE: 17.3%; ROE: 13.5% as of June 2025.

• Basic and diluted EPS for Q1 FY26 were INR 4.12, compared to INR 3.68 in Q4 FY25 and INR 5.30 in Q1 FY25.

• Working capital days increased to 134 as of June 2025 from 102 in March 2025.

Outlook and guidance

• Targeting 120–130 net store additions in FY26, focusing on tier 2/3 markets and aiming for 80% of revenues from EBOs.

• Aiming for mid-single digit SSG in coming quarters, with focus on product innovation, marketing, and omni-channel engagement.

• Gross margin expected to remain in the 62–63% range.

• Expansion to be cautious, prioritizing unit economics, cash flow, and no external funding required.

• Positioned to benefit from branded women's bottom-wear market growth at 20.5% CAGR through FY25.