Thomas Scott (India) Ltd – Investor Presentation Summary

Key Operational Highlights

  • Manufacturing capacity of 60,000 bottoms, 60,000 shirts, and 20,000 bags per month across 4 manufacturing units
  • Fulfillment capacity of 15,000 pieces per day across 4 fulfillment centers
  • More than 35,800 SKUs across 15+ brands distributed through 9+ channels
  • Robust Pan-India presence with manufacturing facilities in Bangalore, Solapur, and Gurgaon
  • Majority orders delivered within maximum 2 days, with same-day or next-day delivery in major urban areas
  • Initiated export operations for international brand portfolio with plans to scale internationally
  • Strong growth in womenswear segment driving higher contribution to overall product portfolio

Key drivers of operational performance: Technology-enabled centralized operations, data-driven product management, efficient supply chain, and expansion into new categories and international markets

Segment-wise Performance

  • Own Brand (Thomas Scott): Premium menswear fashion brand sold on various e-commerce platforms and 5 offline retail outlets in Bengaluru
  • Licensed & Other Brands: Partnership with e-commerce platforms like Myntra, Ajio, Namshi for global brands including Nautica, Aeropostale, FCUK
  • Contract Manufacturing: Services for companies like Raymond, Max, Being Human, Shopper Stop, Red Tape

Explanation of significant changes in segment performance: Growth driven by expansion into new categories (kids wear, handbags), international sales channels, and leveraging data analytics for trend identification

Financial Highlights

Revenue: Rs. 789 Mn (Q2 FY27), Rs. 1,447 Mn (H1 FY27)

EBITDA: Rs. 105 Mn (Q2 FY27), Rs. 190 Mn (H1 FY27)

PAT: Rs. 63 Mn (Q2 FY27), Rs. 117 Mn (H1 FY27)

EPS: Rs. 4.26 per share (Q2 FY27), Rs. 7.97 per share (H1 FY27)

Margins: EBITDA Margin 13.31% (Q2 FY27), 13.13% (H1 FY27); PAT Margin 7.98% (Q2 FY27), 8.09% (H1 FY27)

YoY/QoQ comparison: Q2 revenue grew 38.7% YoY and 19.9% QoQ; PAT grew 34.0% YoY and 16.7% QoQ

Drivers of financial performance: Higher revenue growth, operational efficiencies, and expansion into high-growth segments

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Domestic operations well-established; export operations initiated during Q2 FY27 with groundwork laid for initial export orders

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Rs. 1,387 Mn (H1 FY27)

Current Assets/Liabilities: Current Assets Rs. 2,381 Mn; Current Liabilities Rs. 992 Mn (H1 FY27)

Working Capital/Leverage Metrics: Inventories Rs. 1,149 Mn; Trade Receivables Rs. 740 Mn; Trade Payables Rs. 432 Mn (H1 FY27)

Financial Health Insights: Strong equity base of Rs. 1,536 Mn with total assets of Rs. 2,617 Mn (H1 FY27)

Capex & Cash Flow Health

Capital Expenditure: Property, Plant and Equipment increased to Rs. 190 Mn from Rs. 125 Mn (FY26 to H1 FY27)

Free Cash Flow: Not Specified

Operating Cash Flow: Not Specified

Net Debt Movement: Borrowings increased to Rs. 82 Mn (non-current) and Rs. 443 Mn (current) in H1 FY27 from Rs. 15 Mn and Rs. 450 Mn respectively in FY26

Investment Rationale: Focus on technology development and capacity expansion

Strategic & R&D Initiatives

Investments in Innovation: thread.ai (GenAI-powered fashion co-pilot for trend identification) and catalog.ai (AI-powered e-commerce visual automation) in pilot stage

Expected impact on growth: Enhanced design, pricing, and merchandising strategies; potential monetization as service for fashion brands

Strategic Rationale: Transition towards asset-light, technology-driven business model; expansion into high-growth markets and premium segments

Industry Trends & Business Environment

Macro/Industry Trends: Growing consumer confidence in online shopping; accelerated growth anticipated in premium fashion segment

Impact on Company: Supporting growth in premium segment through association with international brands; enabling expansion of online-focused sales channels

Management Commentary & Growth Outlook

Strategic Outlook: Focus on e-commerce as primary sales channel with "high-width low-depth" strategy for trend-focused designs

FY Guidance: Progressive scaling of international operations over coming quarters; expansion into new categories (kids wear, handbags) and seasonal segments (winterwear)

Risks and Opportunities: Well-planned inventory position for festive season; encouraging performance during Dussehra and Diwali sale events