Financial Performance - Q2 FY27

Revenue Performance:

  • Revenue was broadly flat at ₹96.21 Cr vs ₹97.62 Cr in Q2 FY26
  • The later onset of the festive season moved some demand into Q3
  • Course correction in existing brands aimed at long-term brand positioning and profitability

Margins:

  • Gross margin remained stable at 53.93% in Q2 FY27 vs 54.25% in Q2 FY26
  • Slight dip of 0.32 percentage points due to change in sales mix
  • Channel-level margins were steady

Profitability:

  • EBITDA margin at 10.91% vs 11.61% in Q2 FY26
  • EBITDA at ₹10.49 Cr vs ₹11.33 Cr in Q2 FY26
  • PBT stood at ₹1.35 Cr vs ₹2.64 Cr in Q2 FY26
  • PBT margin at 1.41% vs 2.71% in Q2 FY26

Cost Structure:

  • Finance cost higher at ₹5.10 Cr vs ₹4.07 Cr due to inventory funding and new stores
  • Finance cost includes impact of new stores from lease accounting as per Ind AS
  • Lower depreciation of ₹4.04 Cr vs ₹4.63 Cr

Balance Sheet & Cash Flow - H1 FY27

Liquidity Position:

  • Current ratio improved to 1.25x in Sep-26 from 1.14x in Mar-26
  • Cash flow from operations turned positive at ₹1.12 Cr in H1 FY27
  • This marks the first positive operational cash flow since Sep-24

Debt Position:

  • Total debt rose by ₹6.92 Cr to ₹142.36 Cr in Sep-26 from ₹135.44 Cr in Mar-26
  • Includes ₹16.6 Cr of ECLGS inflow
  • Short-term debt reduced by ₹8.69 Cr to ₹106.57 Cr from ₹115.26 Cr
  • Excluding ECLGS, total debt reduced by ₹9.68 Cr

Strategic Updates & Operational Highlights

New Store Openings:

  • Opened 2 new Off-White exclusive stores at DLF Promenade, Delhi and Quest Mall, Kolkata
  • Initial response to Off-White brand described as "very positive"
  • New store opened at Chhatrapati Shivaji Maharaj International Airport, Mumbai

Manufacturing:

  • Started production of PP luggage from September 2026
  • Healthy production pipeline established for Q3
  • Strong product development including front-opening luggage and UV printing capabilities

CSD Approval:

  • Acquired rights for UCB Luggage from Benetton India in Q1 FY27
  • Received CSD approval for index transfer
  • Sales expected to begin by end of Q4 FY27

New Business Division:

  • Started Product Management Services (PMS) division
  • Leverages product development and manufacturing capabilities
  • Several high-profile customers onboarded
  • Seen as future growth driver

Focus Areas for Upcoming Quarters

  • Monetizing new brands by scaling sales across new brands
  • Delivering consistent positive cash flow from operations
  • Transition from investment phase to returns phase

Brand Portfolio

The company holds exclusive license agreements with 6 premium international brands:

  • Tommy Hilfiger
  • United Colors of Benetton
  • Juicy Couture
  • Superdry
  • Off-White
  • Aeropostale

Business Model & Distribution

Multi-Channel Distribution:

  • Omnichannel presence across online platforms
  • Exclusive Brand Outlets (EBOs)
  • Large format stores
  • Bagline stores
  • Multi-brand outlets (MBOs)
  • Master distributors servicing distributor and retail business

Operational Capabilities:

  • In-house manufacturing capacity of 20K-25K units/month
  • Dedicated team of merchandisers, account specialists, and retail planners
  • Strong sourcing network and in-house trendspotting
  • Robust logistics and warehousing network

Financial History (Standalone)

Income Statement Trends (INR Mn):

| FY | Net Sales | EBITDA | EBITDA Margin | PAT | PAT Margin |

| FY21 | 427.9 | -29.6 | -6.9% | -63.2 | -14.8% |

| FY22 | 861.7 | 83.5 | 9.7% | 7.6 | 0.9% |

| FY23 | 1,632.2 | 216.2 | 13.2% | 100.4 | 6.2% |

| FY24 | 2,901.5 | 349.8 | 12.1% | 121.3 | 4.2% |

| FY25 | 2,919.2 | 341.7 | 11.7% | 52.3 | 1.8% |

| FY26 | 3,480.7 | 313.4 | 9.0% | 9.7 | 0.3% |

Balance Sheet Position (INR Mn as of FY26):

  • Total Equity: 830.6
  • Total Non-Current Liabilities: 623.0
  • Total Current Liabilities: 2,171.0
  • Total Assets: 3,624.5
  • Inventories: 1,276.8
  • Trade Receivables: 987.4

Leadership Team

Prateek Maheshwari - Managing Director:

  • MBA from S.P. Jain Institute, Mumbai
  • Vast experience in Brand Licensing and Fashion Gear manufacturing
  • Responsible for policy matters, organizational development, and overall administration

Abhinav Kumar - Whole Time Director & Co-founder:

  • Former head of marketing for Tommy Hilfiger India at Murjani Group
  • Instrumental in launching 10 categories under Tommy Hilfiger
  • Part of core team that brought brands like CK, FCUK, Jimmy Choo, Gucci to India
  • Instrumental in bringing brand licensees to Brand Concepts