Go Fashion (India) (GOCOLORS) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue was INR 223 crores (₹22,282.53 lakhs), broadly stable year-over-year, with gross profit at INR 140 crores and PAT at INR 22 crores, despite headwinds in the LFS channel and supply chain disruptions.

• 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, with a target of 120–130 net additions for FY26, focusing on Tier 2/3 cities.

• SSSG declined by 2% due to softer footfalls and supply chain delays, with some recovery during EOSS.

• Several Board appointments and re-appointments were made, including Independent Directors, Managing Director, Executive Director, and a new Secretarial Auditor.

Financial highlights

• Revenue for Q1 FY26: INR 223 crores (₹22,282.53 lakhs); gross profit: INR 140 crores; gross margin: 63%.

• EBITDA: INR 69 crores; EBITDA margin: 30.8%; PAT: INR 22 crores; PAT margin: 10%.

• Cash and equivalents: INR 247 crores as of June 30, 2025.

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

• Basic and diluted EPS for the quarter were ₹4.12.

Outlook and guidance

• Targeting 120–130 net store additions in FY26, with 60–70% in new tier 2/3 markets.

• Focus on achieving mid-single-digit SSSG in coming quarters and maintaining gross margin in the 62–63% range.

• Expansion in new categories (women's top wear, select men's wear) piloted in 10–15 stores.

• No external funding required for planned expansion; growth to be funded through internal accruals.

• The company will assess the impact of the Code on Social Security, 2020, once effective.