Go Fashion (India) (GOCOLORS) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue was INR 194-195 crores, with gross margins at 64.3%, EBITDA at INR 52 crores, and PAT at INR 7 crores; 9M FY26 revenue was INR 642 crores, gross margin 63.2%, EBITDA INR 187 crores, and PAT INR 51 crores.

• Q3 FY26 was challenging due to lower footfalls, subdued discretionary consumption, and a 9% year-over-year revenue decline.

• Same-store sales growth (SSSG) was negative, with EBO SSSG at -4.5% in Q3 and -3.6% for 9M FY26.

• Non-leggings bottom-wear now contributes 65% of sales, up from less than 50% previously.

• Board approved a buyback of 1,413,000 shares (2.62% of paid-up capital) at INR 460 per share, totaling INR 65 crores, excluding promoters.

Financial highlights

• Q3 FY26 revenue: INR 195 crores; gross profit: INR 125 crores; gross margin: 64.3%; EBITDA: INR 52 crores (margin 26.7%); PAT: INR 7 crores (margin 3.7%).

• 9M FY26 revenue: INR 642 crores; gross profit: INR 406 crores; gross margin: 63.2%; EBITDA: INR 187 crores (margin 29.2%); PAT: INR 51 crores (margin 8%).

• Q3 FY26 revenue declined 9% year-over-year; EBITDA declined 25%; PAT declined 30% year-over-year for 9M FY26.

• Cash and cash equivalents: INR 256 crores as of Dec 31, 2025.

• EPS for Q3 FY26 was INR 1.33; for 9M FY26, INR 9.49.

Outlook and guidance

• Store expansion to close FY26 with net addition of 60-70 stores; future expansion to be selective and cautious, focusing on Tier 2 and Tier 3 cities.

• Targeting ~80% of revenues from EBOs in coming years, with no external funding required for growth.

• Focus on improving SSSG from negative to flattish, then to low single digits, prioritizing store-level productivity.

• Inventory days expected to stabilize at 100 by year-end; current inventory at 114 days due to new Daily Wear Concept.

• Continued investment in online channels and technology to enhance customer experience and operational efficiency.