Go Fashion India Ltd Management Discussions

Global economic overview

Global growth remained stagnant at 3.5% in 2024 and 2025. AI-led technology demand offset Middle East conflict impacts. Technology-linked and energy exporting economies performed better, while energy importers with limited exposure to the technology cycle, including many low-income countries, experienced weaker growth.

Advanced economies remained broadly stable at 1.9% in both 2024 and 2025, while growth in emerging market and developing economiesalsoremained stableat4.5% Indias position as the fastest-in 2025, unchanged from 2024.

Global inflation continued its multi-year downward trend in 2025, declining to an estimated 4.1% from 5.8% in 2024.

Regional growth (%)	2025	2024
World output	3.5	3.5
Advanced economies	1.9	1.9
Emerging and developing	4.5	4.5
economies
(Source: IMF, un.org)

Performance of the major economies, 2025

United States: GDP growth of 2.1% in 2025 compared to 2.8% in 2024.

China: GDP growth was 5.0% in 2025 compared to 5.0% in 2024.

United Kingdom: GDP growth was 1.4% in 2025 compared to 1.0% in 2024.

Japan: GDP growth was 1.1% in 2025 compared to (0.2)% in 2024.

Germany: GDP growth was 0.2% in 2025 compared to a (0.5)% in 2024.

(Source: IMF April 2026 Outlook, World Bank)

Outlook

Given the challenge of forming stable, real-time assumptions for projections, the IMF World Economic Outlook Update assumes that the reopening of the Strait of Hormuz begins in mid-July 2026, with conditions broadly returning to the prewar state of affairs by March

2027, consistent with commodity price assumptions based on market pricing as of June 10, 2026. Under this outlook, global growth is projected at 3.0% in 2026 and 3.4% in 2027. Global inflation is expected to rise to 4.7% in 2026 , as the disinflation trend since 224 stalls, before easing to 3.9% in 2027.

(Source: OECD Interim Economic Outlook, IMF, World Economic Forum, Federal Reserve, Bank of England, European Central Bank, Bank of Japan)

Indian economic overview

The Indian economys real GDP grew at 7.7% in FY 26, compared to 7.1% in FY 25. This growth was driven by strong consumption and increasing investments, reaffirming major economy.

Indias Real GDP at Constant Prices was estimated at H323.12 Lakh Crore in FY 2025-26, compared with

H299.89 Lakh Crore in FY 2024-25.

Growth of the Indian economy

Particulars	FY 23	FY 24	FY 25	FY 26
Real GDP growth (%)	7.0*	7.2	7.1	7.7

E: Estimated. Note: FY24 figure restated under new base year 2022 23. (Source: MoSPI) * The FY23 figure (7.0%) is from the old base year series (2011 12) as the new series back-data for FY23 will only be available after December 2026.

Growth of the Indian economy quarter by quarter, FY 2025-26

Particulars	Q1 FY 26	Q2 FY 26	Q3 FY 26	Q4 FY 26
Real GDP	6.7	8.4	7.8	7.8
growth (%)

Note: Q2 revised upward from 8.2% and Q3 from 7.35% under the new base year 2022-23 series released February 27, 2026.

Q4 remains an estimate. (Source: MoSPI)

Inflation, policy and currency dynamics

Inflation remained benign through much of FY 26, with full-year CPI estimated at 2.1%, creating room for monetary easing and supporting consumption and investment.

Indias growth story

Indias economy remained resilient during FY26, with Real Gross Value Added (GVA) growing 7.9%, compared with 7.3% in FY 25. The services sector remained the primary growth driver, supported by broad-based momentum across financial services, real estate, IT, trade, hospitality, transport and communication. The secondary sector also recorded stronger growth, driven by manufacturing and construction, contributing to a more balanced economic structure.

Private Final Consumption Expenditure (PFCE) and Gross Fixed Capital Formation (GFCF) both recorded growth of over 7%, reflecting healthy household spending and sustained investment activity.

Growth catalysts

Policy-led consumption boost: The Union Budget

FY 27s tax relief measures - particularly income tax exemptions up to H12 Lakh - are expected to stimulate discretionary spending and reinforce consumption-led growth.

Anticipatory Pay Commission impact: The 8 th Pay

Commission, though expected to be implemented from FY 28, is already shaping consumer sentiment, creating a forward consumption impulse.

Monetary stability: The Reserve Bank of Indias calibrated stance, with the repo rate at 5.25%, balances inflation risks with growth support, ensuring macroeconomic stability.

Credit expansion: Improved banking health and liquidity conditions are expected to sustain strong credit growth across MSMEs, housing, and retail segments.

Fiscal prudence with growth focus: The Union Budget maintains fiscal discipline while prioritising infrastructure, MSME support, skilling and innovation key levers for long-term productivity.

Outlook

Despite a challenging global environment, India continues to demonstrate resilience supported by strong domestic demand, stable inflation and sustained policy reforms. The World Bank has revised its FY 27 growth estimate upward to approximately 6.6%, with India expected to remain the fastest-growing major economy. Growth is expected to be driven by resilient private consumption, improving investment activity, stable exports and favourable demographics. While risks remain from elevated energy prices, global demand uncertainty and geopolitical developments, Indias strong macro-economic fundamentals are expected to support sustained medium-term growth.

(Source: Upstox, Economic Times, India Today, 5paisa, Livemint, The Logical Indian)

Indian apparel market

India is one of the worlds largest textile and apparel markets, supported by a well-integrated value chain spanning fibre production, spinning, weaving, processing, garment manufacturing and retail. The sector is a major contributor to employment and economic activity, providing livelihoods across manufacturing, agriculture and allied industries. The Indian textile and apparel market was valued at US$ 248.70 Billion in 2025 and is expected to reach US$ 656.31 Billion by 2034, expanding at a CAGR of 11.38% during 2026 2034. Within this, the womens apparel market was valued at US$ 95.83 Billion in 2025 and is expected to grow to US$ 121.87 Billion by 2034, registering a CAGR of 2.71% over the same period. Growth across the Indian apparel industry is being supported by rising disposable incomes, increasing urbanisation, greater fashion consciousness and the growing participation of women in the workforce, driving demand for versatile and stylish apparel. The rapid expansion of organised retail and digital commerce is further enhancing consumer access to branded products. On the supply side, sustained export demand continues to reinforce the sectors competitiveness, with

Indias textile exports, including handicrafts, increasing from H3,09,859.3 Crore in FY 25 to H3,16,334.9 Crore in FY 26, registering a growth of 2.1%. Government initiatives such as the Production Linked Incentive

(PLI) Scheme, PM MITRA Textile Parks and Make in India continue to strengthen domestic manufacturing capabilities and support long-term industry growth.

(Source: PIB, IMARC Group)

Indian retail apparel market

Indias apparel retail market continues to evolve, driven by changing consumer preferences, rising disposable incomes and rapid digitalisation. The market was valued at H9.30 Lakh Crore in FY 25 and has grown at a CAGR of around 7% since FY 18. It is expected to reach H16 Lakh crore by FY 30, supported by increasing urbanisation, the expansion of organised retail and growing consumer preference for branded apparel. Organised retail currently accounts for around 41% of the overall apparel market and is expected to grow at 10 13%, led by the increasing presence of national and international brands, the rising popularity of value fashion and the shift towards structured retail formats.

The Indian apparel retail market is being driven by the rapid expansion of e-commerce, rising internet penetration and changing shopping behaviour, particularly among younger consumers. E-commerce currently accounts for around 22% of the organised apparel retail market and is expected to contribute approximately 25% by FY 30, with the market expected to reach H5 Lakh Crore. Supported by a digital ecosystem of over 955 Million internet users, brands are increasingly leveraging online platforms and their own digital channels to strengthen consumer engagement and improve profitability.

At the same time, Tier II and Tier III cities are emerging as the next phase of retail growth, supported by rising disposable incomes, improving digital adoption and evolving consumer preferences. These markets are expected to contribute around 23% of the countrys apparel demand, driving store expansion, particularly in the value and affordable ethnic wear segments. Organised retailers are accelerating their presence in these markets by offering quality products at accessible price points, further formalising Indias apparel retail landscape.

(Source: Cera ratings)

Key trends shaping dailywear

The dailywear category is evolving beyond functional necessity into a wardrobe segment defined by comfort, versatility and individual expression. Consumer preference for breathable and skin-friendly fabrics such as cotton and linen continues to grow. Athleisure formats such as joggers, leggings and flexible everyday pants are increasingly being worn beyond fitness-related occasions.

Co-ord sets and top-bottom combinations are also emerging as versatile options across casual, work, travel and lounge occasions. At the same time, mix-and-match dressing continues to blur the traditional boundaries between ethnic and western wear, with consumers increasingly pairing ethnic tops with western bottoms. These shifts are strengthening bottomwear as an independent wardrobe category and widening the opportunity for specialised, category-focused brands.

Evolution of organised apparel retail reducing logistics costs

Indias organised apparel retail landscape continues to evolve through the convergence of physical and digital channels. Physical stores remain important for product discovery, trial and conversion, while digital channels expand consumer reach and strengthen convenience. Retailers are increasingly adopting phased buying, frequent merchandise refreshes, sell-through monitoring, selective reordering and controlled markdowns to balance product freshness with inventory efficiency. Loyalty programmes, influencer collaborations, community-led initiatives and personalised in-store service are also becoming important tools for strengthening consumer engagement and encouraging repeat purchases.

The category opportunity

Within the broader apparel market, womens bottomwear is emerging as a distinct and increasingly important category. The shift towards mix-and-match dressing, greater participation of women in the workforce and the growing preference for comfort-led fashion are expanding demand across leggings, trousers, palazzos, joggers, denims and other everyday formats. Consumers are increasingly seeking products that can transition across work, travel, leisure and social occasions, creating a wider market for brands offering depth of choice across fits, fabrics, colours and price points.

Industry outlook

The Indian apparel retail market will continue to benefit from rising household incomes, increasing urbanisation, digital adoption and the expansion of organised retail beyond major cities. Growth will increasingly be shaped by brands that combine strong product relevance with accessible pricing, wider distribution and an integrated physical and digital presence. Within this environment, specialised apparel brands with a clear category focus, responsive product development and a strong understanding of evolving consumer preferences will be well placed to capture the growing shift from unorganised to branded retail.

Government initiatives

PM MITRA textile parks: The Government of India has approved seven PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks across Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and

Maharashtra, with an outlay of H4,445 Crore through FY 28. These integrated parks bring together spinning, weaving, processing, dyeing, garmenting, logistics and common infrastructure at a single location, improving supply chain efficiency, production lead times. The initiative is expected to attract large-scale investments, accelerate technology adoption and strengthen Indias competitiveness as a global textile manufacturing hub.

ProductionLinkedIncentive(PLI)schemefortextiles:

The Production Linked Incentive (PLI) Scheme for Textiles, operational until FY 30, aims to boost domestic manufacturing of Man-Made Fibre (MMF) apparel, MMF fabrics and technical textiles. The scheme is designed to enhance industry scale and competitiveness, attract investments, generate employment and strengthen Indias position as a global textile manufacturing hub. Cotton sector reforms: The Government continues to strengthen Indias cotton value chain, which supports around 6 million farmers and 40-50 Million people across allied industries. Initiatives such as the

Kapas Kisan mobile app and the Kasturi Cotton Bharat Programme are improving transparency, traceability and the global acceptance of Indian cotton. Further, the deferment of the Quality Control Order (QCO) 2023 for cotton bales until August 2026 is expected to facilitate a smoother industry transition while maintaining quality standards.

(Source: PIB, IMARC Group)

Risk management

Risk category	Potential impact	Mitigation framework
Fashion and	Rapidly changing fashion trends, evolving	Continuous trend forecasting, in-house design capabilities,
consumer	consumer preferences and fluctuations in	frequent collection refreshes, data-driven merchandising,
demand risk	discretionary spending may reduce product	diversified product offerings and targeted marketing initiatives
	relevance and affect sales and margins.	help sustain product relevance and customer demand.
Inventory and	Excess inventory, stock shortages or	Technology-enabled demand forecasting, ERP-based inventory
working capital	inefficient	planning, automated inventory replenishment, management SKU rationalisation, may
risk	impact sales, margins, liquidity and working	centralised warehouse management and continuous inventory
	capital efficiency.	monitoring support optimal inventory levels and efficient
		working capital management.
Store expansion	Delays in store rollouts, suboptimal	Rigorous site evaluation, standardised store formats, phased
risk	location selection or lower-than-expected	expansion, performance benchmarking and disciplined capital
	store productivity may affect returns on	allocation support sustainable network growth.
	investment.
Store risk	Lower-than-expected store productivity,	A data-driven store selection process, continuous store
	declining footfalls, rising occupancy costs or	performance monitoring, periodic portfolio optimisation,
	operational disruptions may affect revenue	standardised operating practices and omnichannel integration
	growth and profitability.	help improve store productivity and optimise returns.
Occupancy Cost	Rising rentals, lease renewals on	Disciplined lease negotiations, rigorous location evaluation,
Risk	unfavourable terms or increasing store	periodic store profitability reviews and optimisation of the store
	operating costs may affect profitability and	portfolio help manage occupancy costs.
	expansion economics.
Supplier	Dependence on a limited supplier base or	A diversified
concentration	production disruptions may affect product	periodic supplier assessments and alternate sourcing
risk	availability and delivery timelines.	arrangements strengthen supply chain resilience.
Brand risk	Product quality issues, inconsistent	Robustqualitycontrol,standardisedstoreexperience,consistent
	customer experience or adverse publicity	brand communication, customer feedback mechanisms and
	may impact brand reputation and customer	strong governance help safeguard brand equity.
	loyalty.
Digital and	Cybersecurity incidents, data breaches or	Secure IT infrastructure, regular vulnerability assessments,
cyber risk	IT system disruptions may affect business	cybersecurity monitoring, data protection protocols, disaster
	continuity and customer trust.	recovery systems and employee awareness programmes
		strengthen digital resilience.
Talent risk	Challenges in attracting, developing and	A performance-driven culture, structured learning and
	retaining skilled employees may affect	development, leadership succession planning, employee
efficiency and long-term operational		engagement initiatives and competitive reward practices
	growth.	support talent retention and capability building.
Regulatory and	Changes in taxation, labour laws, ESG	Dedicated compliance monitoring, periodic internal audits,
compliance risk	requirements or other regulations may	robust governance practices, legal oversight and continuous
	increase compliance costs and operational	policy reviews ensure adherence to evolving regulatory
	complexity.	requirements.

Company overview

Founded in 2010 by Prakash Kumar Saraogi, Gautam Saraogi and Rahul Saraogi, Go Fashion (India) Limited (GFIL) is one of Indias leading womens bottomwear companies. Headquartered in Chennai, the Company operates under its flagship Go Colors brand and has built a strong presence in the organised branded womens bottomwear market.

The Company offers over 50 styles in more than 120 colours across western, ethnic, fusion, athleisure and denim categories, catering to diverse consumer preferences, age groups and sizes. Its omnichannel retail network, comprising Exclusive Brand Outlets (EBOs), Large Format Stores (LFSs) and online channels, is supported by strong unit economics, an efficient sourcing network and robust supply chain capabilities. GFIL combines in-house product development with data-driven merchandising, using market insights, ERP analytics and customer feedback to deliver relevant products and respond swiftly to evolving fashion trends.

Supported by a scalable business model, disciplined execution and a strong retail presence, the Company continues to strengthen its leadership in Indias womens bottom-wear segment.

Key ratios

Particulars	FY 2025-26	FY 2024-25
Debt-equity ratio (x)	0.77	0.73
Debtors turnover (Days)	46	46
Inventory turnover (Days)	117	102
Debtors turnover (on total	7.93	9.17
sales) (x)
Inventory turnover (x)	3.31	3.74
Interest coverage ratio (x)	4.8	5.78
Current ratio (x)	3.42	3.97
Gross margin (%)	63.2	63.3
EBITDA margin (%)	28.3	31.6
Net profit margin (%)	7.1	11.0

Outlook

GFIL remains focused on strengthening its leadership in Indias womens bottom-wear market through disciplined expansion, product innovation and operational excellence. During FY 26, the Company delivered revenue of H838 Crore while maintaining a healthy EBITDA margin of 28.3%, reflecting the resilience of its business model and efficient cost management. The Company will continue to expand its retail footprint by prioritising larger stores that can accommodate a broader and more differentiated bottomwear portfolio These stores will improve product visibility and customer discovery while enabling the presentation of a wider range of styles, fits, colours and categories Supported by its omnichannel presence and growing supply chain resilience reach across 195 cities, GFIL will deepen customer engagement and strengthen its presence across existing and new markets.

Alongside its core Exclusive Brand Outlet (EBO) network, the Company continues to strengthen its presence long-term vendor relationships, acrossLargeFormatStores (LFS) and digital channels. It also sees a long-term opportunity in the Multi-Brand Outlet (MBO) channel and will pursue calibrated expansion while maintaining pricing discipline and brand positioning.

International expansion remains a key strategic priority. Through its partnership with Apparel Group under the Franchise Owned, Franchise Operated (FOFO) model, the Company is steadily expanding its presence in the . At Middle East without significant the same time, GFIL continues to evaluate adjacent product categories and customer segments through a measured, pilot-led approach, while keeping womens bottom wear at the core of its strategy.

Supported by a strong balance sheet, healthy operating cash flows, investments in technology, data analytics and product development, along with a resilient sourcing and supply chain network, the Company remains well positioned to capitalise on Indias growing organised apparel market and deliver sustainable, profitable long-term growth.

Internal control systems

GFIL has implemented a robust internal control framework to support efficient operations, safeguard assets and ensure effective risk management across its business. The Company leverages an integrated

ERP platform to automate procurement, inventory and supply chain processes, enabling real-time visibility, efficient resource planning and optimal inventory management while minimising the risks of stock-outs and excess inventory.

Inventory planning is further strengthened through business intelligence and data analytics tools, which enhance demand forecasting, replenishment planning and product availability across the retail network. A dedicated sourcing team closely monitors supplier performance, undertakes regular quality inspections and ensures adherence to stringent quality standards throughout the procurement process.

The Company also maintains established quality control procedures and continuously tracks suppliers production capacity and delivery schedules to ensure timely procurement and uninterrupted product availability. These systems, supported by periodic reviews and process controls, help strengthen operational efficiency, overall business continuity.

Human resources

GFIL believes its people are central to sustaining long-term growth and operational excellence. The Company fosters a performance-driven and inclusive work environment that encourages collaboration, innovation and continuous learning. As on 31 st March, 2026, the Company had a workforce of 4,771 employees.

The Company invests in structured learning and development programmes, on-the-job training and skill enhancement initiatives to strengthen employee capabilities across functions. It also focuses on employee engagement, leadership development and creating a positive workplace culture through open communication, recognition programmes and opportunities for career growth, enabling employees to contribute effectively the Companys continued success.

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectations and estimations which may be forward-looking statements within the meaning of applicable securities laws and regulations. Forward looking statements are based on certain assumptions and expectations of future events.

The Company cannot guarantee that these assumptions and expectations are accurate or will be realised by the Company. Actual results could differ materially from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent development, information or events.