Go Fashion (India) (GOCOLORS) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was INR 21,759.40 lakh, down 3% YoY, and PAT was INR 896.59 lakh versus INR 2,180.42 lakh; EBITDA before exceptional expenses was INR 56 crore.

• H1 revenue was INR 44,043.27 lakh, down 1.5% YoY, and PAT was INR 2,545.58 lakh; EBITDA before exceptional expenses was INR 123.4 crore.

• FY27 priorities include positive full-year SSG, larger store formats, product and brand refresh, daily wear expansion and LFS recovery; management says execution is on track.

• Larger stores are outperforming smaller stores, which management views as the main growth headwind; the format shift will take time to affect results.

Financial highlights

• Q2 gross profit was INR 132 crore, down 6% YoY; gross margin was 60.8%, down 180 bps, with higher raw-material costs contributing to pressure.

• H1 gross profit was INR 272 crore, down 3% YoY, with a 61.8% gross margin, down 100 bps.

• Q2 total income was INR 22,402.13 lakh, total expenses INR 21,188.69 lakh and PBT INR 1,213.44 lakh; H1 PBT was INR 3,416.93 lakh.

• H1 advertising spend rose to INR 12.63 crore from INR 7.85 crore; store-closure write-offs were INR 9.87 crore versus INR 1.73 crore in H1 FY26.

• Cash, mutual funds and FDs totaled INR 211.4 crore at H1-end; H1 operating cash flow was INR 125.5 crore reported, or INR 52.6 crore pre-Ind AS 116.

Outlook and guidance

• Management targets positive FY27 SSG; Q3 and Q4 are expected to deliver good numbers, with festive trading described as decent so far.

• Calibrated price increases have begun on selected products, with further increases planned post-festive; gross margins are expected to stabilize over two quarters and recover over time.

• Q3 store closures were projected at 15–20 based on current visibility; management expects fewer closures than in H1 and lower closure-related pressure.

• Retail area could nearly double over five years, through selective expansion in high-potential Tier 1, 2 and 3 locations; no external funding is expected for planned growth.

• Daily wear target remains 25–30 stores by FY27-end, from 21 operational stores; 8–9 additional pilot stores are planned.