Financial Performance Overview

Quarterly Results (Q2 FY27 vs Q2 FY26)

  • Revenue from operations increased 7.0% to ₹938.4 crore (₹93,837 lacs) from ₹877.32 crore
  • EBITDA declined 13.5% to ₹76.2 crore (₹7,625 lacs) from ₹88.11 crore
  • EBITDA margin contracted 191 basis points to 8.1% from 10.0%

Half-Yearly Results (H1 FY27 vs H1 FY26)

  • Revenue from operations increased 9.7% to ₹1,855.4 crore (₹1,85,544 lacs) from ₹1,691.05 crore
  • EBITDA increased 9.6% to ₹178.3 crore (₹17,829 lacs) from ₹162.73 crore
  • EBITDA margin remained stable at 9.6%

Geographic Segment Performance (Q2 FY27)

United States

  • Revenue: ₹500.0 crore (₹50,004 lacs), +4.3% in rupee terms, -4.1% in constant currency
  • EBITDA: ₹28.68 crore (₹2,868 lacs), -7.8%
  • EBITDA margin: 5.7% (76 bps contraction)
  • Units sold: 1.391 million, +4.8%
  • eCommerce % of revenue: 44.0% (110 bps decline)

United Kingdom

  • Revenue: ₹257.2 crore (₹25,719 lacs), +2.3% in rupee terms, -7.0% in constant currency
  • EBITDA: ₹7.33 crore (₹733 lacs), -66.8%
  • EBITDA margin: 2.9% (590 bps contraction)
  • Units sold: 897,000, -5.9%
  • eCommerce % of revenue: 36.5% (50 bps improvement)

Europe (excluding UK)

  • Revenue: ₹110.0 crore (₹11,023 lacs), +18.3% in rupee terms, +8.0% in constant currency
  • EBITDA: -₹2.18 crore (₹-218 lacs) vs -₹0.86 crore
  • EBITDA margin: -2.0% (105 bps contraction)
  • Units sold: 381,000, +11.5%
  • eCommerce % of revenue: 48.8% (40 bps decline)

Business Segment Performance

Retail (B2C) Business

  • Q2 FY27 Revenue: ₹867.46 crore (₹86,746 lacs), +5.3% in rupee terms, -3.2% in constant currency
  • Q2 FY27 EBITDA: ₹33.83 crore (₹3,383 lacs), -35.3%
  • H1 FY27 Revenue: ₹1,748.59 crore (₹1,74,859 lacs), +9.5%
  • H1 FY27 EBITDA: ₹105.07 crore (₹10,507 lacs), +8.2%
  • eCommerce contribution to B2C revenue: 42.4% in Q2 FY27 (42.8% in Q2 FY26)
  • In-house brands contributed 57% of B2C revenue

B2B Business

  • Q2 FY27 Revenue: ₹70.9 crore (₹7,090 lacs), +32.4%
  • Q2 FY27 EBITDA: ₹42.42 crore (₹4,242 lacs), +18.5%
  • H1 FY27 Revenue: ₹106.85 crore (₹10,685 lacs), +12.9%
  • H1 FY27 EBITDA: ₹73.22 crore (₹7,322 lacs), +11.6%

Operational and Strategic Developments

The company completed the migration of its channel websites from Salesforce Commerce Cloud to Shopify Enterprise during Q2 FY27. The transition involved:

  • Temporary integration-related challenges including customer account reactivation
  • Optimization of search and merchandising functionality
  • SEO re-indexing impacting digital conversion and revenue
  • Consolidation of four warehouses and two studios into a single larger headquarters in the UK
  • Some inventory remains temporarily offline, limiting product availability

Foreign exchange impact: The Indian Rupee weakened by approximately 9% against the US Dollar and 10% against both the British Pound and the Euro, benefiting reported revenue growth.

Management Commentary

Mr. Sunil Agarwal, Managing Director, stated that Q2 FY27 was a "quarter of transition" with the platform migration causing temporary challenges. Despite these near-term issues:

  • European business delivered growth in constant currency
  • B2B business recorded strong growth
  • Total revenue for the first half grew close to 10%

The company now has a "unified, cloud-based and scalable platform" supporting all brands and geographies. Focus areas going forward include:

  • Restoring digital momentum
  • Strengthening customer acquisition
  • Improving operating leverage
  • Capitalizing on seasonally strongest quarters

The new platform is expected to provide "a stronger foundation for accelerating digital growth and driving sustainable, profitable growth in the periods ahead."

Supplemental Metrics

Half-Yearly Geographic Performance (H1 FY27)

  • United States: Revenue ₹1,030.07 crore, +9.7% in rupee terms, -0.3% in constant currency; EBITDA margin 8.4% (102 bps improvement)
  • United Kingdom: Revenue ₹505.27 crore, +5.7% in rupee terms, -4.0% in constant currency; EBITDA margin 3.8% (340 bps contraction)
  • Europe: Revenue ₹213.25 crore, +18.7% in rupee terms, +7.0% in constant currency; EBITDA margin -0.3% (335 bps improvement)

Units Sold Performance

  • H1 FY27 United States: 2.747 million units, +4.1%
  • H1 FY27 United Kingdom: 1.714 million units, -3.8%
  • H1 FY27 Europe: 711,000 units, +11.2%