Go Fashion Q1 Profit Falls 22% to ₹22.2 Crore

3 Aug 2025 , 12:16 AM

Go Fashion (India) Ltd, known for its ‘Go Colors’ brand, reported a subdued first-quarter performance for FY26. The company reported its net profit falling 22.4% year-on-year to ₹22.2 crore. This is down from ₹28.6 crore in the year-ago period.

The company attributed the dip in profitability to two key challenges:

• disruptions in the Large Format Store (LFS) channel at major partner locations and
• logistics delays linked to the Bangladesh route blockade.

Revenue remained largely flat, rising just 1.4% YoY to ₹223 crore. It is suggested by limited traction during the period. Operating profit (EBITDA) declined by 4.2% to ₹69 crore. Margins shrank to 31% from 33% last year. This is partly due to unfavourable channel mix and reduced operating leverage.

Despite the early-quarter pressures, the latter half showed signs of recovery, particularly during the End-of-Season Sale (EOSS), which supported gross margin expansion to 63%, aided by softer input costs and an improved product mix.

The average selling price (ASP) moved up to ₹805, reflecting the company’s continued push towards value-added and premium offerings.

However, same-store sales growth (SSSG) for exclusive brand outlets (EBOs) came in negative at -2%, indicating a decline in like-for-like sales. At the same time, same-cluster sales showed a modest 1.4% uptick, hinting at selective regional strength.

Inventory stood at 98 days, while working capital cycle extended to 133 days. Nonetheless, Go Fashion maintained a healthy full-price sell-through rate of 97%, highlighting robust product-level efficiency.

During the quarter, the company added 27 net new EBOs, pushing its total store count to 803 across India as of June 30, 2025. It remains on course to open around 120 new stores in FY26.

In a bid to diversify its portfolio, the company has started piloting new segments, including women’s topwear and select men’s wear, across 15–20 outlets. Its first international store in Dubai also witnessed encouraging early trends.

From a returns standpoint, Go Fashion posted a RoCE of 17.3% and RoE of 13.5% for the quarter. Cash and equivalents on the balance sheet stood at a comfortable ₹247 crore.

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