Go Fashion (India) (GOCOLORS) Q4 25/26 earnings summary

Executive summary

• FY 2026 was marked by internal transition, store format evolution, and a shift in product mix toward value-added bottom wear, now comprising about 70% of revenue.

• Revenue from operations for FY26 was ₹838 crore, a slight decrease of 1% year-over-year.

• Profit after tax for FY26 was ₹59 crore, down 37% year-over-year, with PAT margin at 7.1%.

• Retail footprint expanded to 802 EBO stores across 195 cities, with a net addition of 43,283 sq. ft. (+11% YoY).

• Brand investments included influencer collaborations and the upcoming appointment of a brand ambassador to boost visibility among younger consumers.

Financial highlights

• FY 2026 revenue: INR 838 crores; gross profit: INR 529 crores (gross margin 63.2%); EBITDA: INR 237 crores (EBITDA margin 28.3%); PAT: INR 59 crores (PAT margin 7.1%).

• Q4 FY 2026 revenue: INR 196 crores; gross profit: INR 123 crores (GP margin 62.9%); EBITDA: INR 50 crores (EBITDA margin 25.3%); PAT: INR 8 crores (PAT margin 4.1%).

• ROCE and ROE (ex-Ind AS): 11.5% and 8.9% respectively.

• Cash and cash equivalents: INR 181 crores as of March 31, 2026.

• EPS for FY26 was ₹10.97.

Outlook and guidance

• Targeting positive same-store sales growth (SSG) by end of FY 2027, reversing the negative SSG of FY 2026.

• Plans to nearly double retail area over the next five years, focusing on larger EBO stores for revenue maximization and cost optimization.

• Margin recovery expected from Q2 FY 2027 as cost savings from store consolidation materialize.

• Advertisement cost to remain at 2–3% of revenue, with a brand ambassador to be appointed by June 2026.

• The company continues to monitor regulatory changes, especially regarding new Labour Codes, and will adjust accounting as needed.