Cantabil Retail Q1 FY27 Results (NSE: CANTABIL)
Signal: Margin expansion
The read
The operating trajectory improved in Q1FY27: revenue grew 13% to ₹178.82 crore and EBITDA margin expanded 410bps to 34.9%, but PAT growth was only 11% at ₹16.33 crore and trailed EBITDA growth, while 4.04% SSSG indicates positive but moderate same-store momentum. The FY26 base was also strong, with revenue up 18% to ₹852.6 crore, EBITDA margin up to 31.0% from 28.4% and PAT up 28% to ₹95.8 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹178.82 Cr | 13% | N/A |
| EBIT | ₹34.37 Cr | N/A | |
| Net profit | ₹16.33 Cr | 11% | |
| EPS | ₹1.95 | N/A | |
| EBIT margin | 34.9% |
P&L walk
Standalone revenue rose to ₹178.82 crore, up 13% YoY, while EBITDA increased to ₹62.33 crore and EBITDA margin expanded to 34.9% from 30.8%; PAT grew a slower 11% to ₹16.33 crore, with no QoQ comparison disclosed.
Key positives
- Revenue reached ₹178.82 crore, up 13% YoY, with 4.04% SSSG and 667 exclusive brand outlets supporting continued network-led growth.
- EBITDA increased to ₹62.33 crore and EBITDA margin expanded to 34.9% from 30.8%, a 410bps YoY improvement; management cited disciplined cost management and scale efficiencies.
- FY26 established a stronger earnings base, with revenue of ₹852.6 crore up 18%, EBITDA margin of 31.0% versus 28.4%, and PAT of ₹95.8 crore up 28%.
Key concerns
- PAT grew 11% to ₹16.33 crore, materially slower than the 21% EBITDA growth stated in the release, while PAT margin declined from 9.2% to 9.1%.
- SSSG of 4.04% is positive but indicates that part of the 13% revenue growth depends on store additions and network expansion rather than same-store acceleration.
- The press release reports EBITDA of ₹59.4 crore and a 33.2% margin, whereas the verified XBRL financials report EBITDA of ₹62.33 crore and a 34.9% margin; the company’s reported operating-profit figures should be reconciled.
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