Nature of the Disclosure

This document is the transcript of the Q1 FY27 earnings conference call for Go Fashion (India) Limited, submitted as a regulatory disclosure to the BSE Limited and the National Stock Exchange of India Ltd.

Key Quantitative Figures & Financial Performance

Revenue: Stood at INR 223 crores for the quarter, flat year-on-year.

Gross Profit: Stood at INR 140 crores, with a Gross Profit Margin of 62.9%.

EBITDA: Before exceptional expense stood at INR 67.4 crores. EBITDA margin was 30.3%.

PAT: Stood at INR 16 crores.

Exceptional Item: An exceptional expense of INR 6.5 crores was recorded, relating to the write-off of capital expenditure for store closures.

ROCE and ROE: Excluding Ind AS impact, stood at 10.8% and 7.9%, respectively.

Cash and Cash Equivalents: Stood at INR 202 crores as of 30th June 2026.

Same-Store Sales Growth (SSSG): For the EBO channel turned positive at 0.6%. Same cluster sales growth was 1.2%.

LFS Channel Sales: Grew 2% year-on-year to INR 50 crores.

Advertising Spend: As a percentage of revenue was 2.3% for the quarter.

Full Price Sales: Stood at a strong 94% for the quarter.

Average Selling Price (ASP): Came to about INR 863.

Working Capital Days: Stood at 139 days.

Inventory Days: Stood at 100 days.

Total Inventory: Was INR 245 crores as of the end of Q1, including raw materials.

Strategic & Operational Updates

Management provided an update on five stated priorities for FY27:

1. SSSG Turn Positive: Achieved with 0.6% growth in Q1. Management cautioned that it is early to call it a firm trend but noted that SSSG for larger stores (700+ sq. ft.) was in the range of 2.5% to 3%.

2. Store Format Migration: The company closed 66 smaller stores in Q1, leading to a net reduction of 7,000 square feet of retail space. The strategy is to replace them with larger-format stores nearby. The aim is to add 8-10% square footage on a full-year basis.

3. Product Portfolio Refresh: The company plans to add 10 to 12 new products in FY27. Shraddha Kapoor was onboarded as the brand ambassador in July to target a younger audience.

4. Daily Wear Concept Expansion: The pilot daily wear concept currently has 15 stores. The target is to scale this to 25-30 stores by the end of FY27. These stores are generating about INR 1,000 of sales per square foot per month, and 12-13 of the 15 stores are already profitable.

5. LFS Channel Recovery: The channel showed recovery, growing 2% YoY after operational disruptions with a key partner in FY26.

Raw Material (RM) Cost Inflation

Fabric cost has increased by 7% to 10% due to the Middle East situation. Management is not implementing price hikes currently, hoping prices will stabilize and fall. This inflation is expected to impact gross margins in the coming quarters, though the quantum is difficult to quantify due to a blend of old and new inventory.

Store Economics & Inventory

For new larger stores, the payback period is estimated to be 15-20 months. Inventory turns in these stores are estimated to be 45-60 days on sales.

Management aims to optimize inventory days further to the range of 90-100 days by the end of the year.

Capital Expenditure & Financing

All planned capital expenditure for store expansion and upgrades will be financed through internal accruals, as operating cash flow is deemed strong enough.

Q&A Session Highlights

  • Store Closures: The number of future store closures is interlinked with opportunities to open larger stores and is not expected to be as intense as in recent quarters.
  • SSSG Attribution: The 0.6% SSSG improvement could be due to a favorable base (weak Q1 FY26), business shifting from closed stores to existing ones, or better overall demand. Management emphasized it is not yet a confirmed trend.
  • LFS Channel: The company clarified it is present in Reliance Trends, not AZORTE. Supply chain disruptions with LFS partners from the previous year have normalized.
  • New Ventures: Management is evaluating entering the lingerie category as part of the daily wear concept expansion.