Mr. Charath Ram Narsimhan, Managing Director & Chief Executive Officer, commented on the quarter's performance, highlighting a strategy centered on profitable growth and operational discipline.
He noted revenue growth of 18.8% despite a measured consumer spending environment, with improved performance across key channels.
The company achieved meaningful improvement in gross margin and operating profitability, returning to positive Profit Before Tax.
Strengthened omni-channel presence through growth in Exclusive Retail, Large Format Outlet, and Online businesses.
Focus on inventory optimization, receivables management, and cost discipline improved working capital efficiency.
Looking ahead, committed to accelerating profitable growth through investment in product innovation, category expansion, and customer-centric initiatives.
Market Update & Industry Trends
Consumer sentiment softened after mid-May, with households turning cautious on discretionary spend.
Sustained shift towards branded apparel, with consumers consolidating spend towards trusted brands.
Industry focus on profitable growth, inventory discipline, and controlled discounting.
Cost and macro headwinds from geopolitical tension in West Asia driving volatility in freight and fuel costs, adverse currency movement, and state-level minimum wage increases.
Constructive outlook for H2 FY27 expecting demand strengthening through festive and wedding season.
Financial Performance - Q1 FY27
Revenue & Profitability
Revenue from operations: ₹81.74 Crore (18.8% YoY growth from ₹68.78 Cr in Q1 FY26)
Gross Margin: ₹33.49 Crore (41.0% margin, up 193 bps from 39.0% in Q1 FY26)
Operating EBITDA: ₹6.08 Crore (7.4% margin, up from ₹1.01 Cr and 1.5% in Q1 FY26)
EBITDA: ₹7.57 Crore (9.26% margin, +233.5% YoY from ₹2.27 Cr)
Profit Before Tax: ₹0.14 Crore (0.17% margin, versus loss of ₹6.04 Cr in Q1 FY26)
Profit After Tax: ₹(0.83) Crore (improved from loss of ₹6.20 Cr in Q1 FY26)
