Go Fashion (I) Q1 FY27 Results (NSE: GOCOLORS)
Signal: Steady quarter
The read
Q1FY27 revenue flat at ₹222.84 Cr (+0.01% YoY) masks a gross margin tailwind from lower raw material costs (cost of materials -28.5% YoY), but an asset write-off of ₹6.46 Cr (store consolidation) inflated other expenses and compressed PAT to ₹16.49 Cr (-25.9% YoY). Excluding the one-off, underlying PBT would have been ₹28.49 Cr, up from ₹29.69 Cr a year ago, indicating modest core erosion. The full-year FY26 result (PAT ₹59.12 Cr, -60% YoY) shows a deeper structural decline partly due to the March-quarter write-downs. The Q1 sequential recovery (+13.6% revenue, +107.5% PAT) is partly seasonal and partly from the write-off being behind.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹222.84 Cr | 0.01% | 13.6% |
| EBIT | ₹33.4 Cr | -9.5% | |
| Net profit | ₹16.49 Cr | -25.9% | |
| EPS | ₹3.14 | -23.8% | |
| EBIT margin | 14.99% |
P&L walk
Standalone-only company; no consolidated statement.
Key positives
- Revenue recovered 13.6% QoQ from the seasonally weak March quarter, nearing the year-ago level of ₹222.83 Cr.
- Cost of materials consumed fell 28.5% YoY, implying a gross margin tailwind from input deflation – raw material cost as a percentage of revenue dropped from 19.7% to 14.1%.
- No dilution: equity base unchanged at 525.96 lakh shares; EPS tracks PAT closely.
Key concerns
- Profit after tax fell 25.9% YoY to ₹16.49 Cr, dragged by a ₹6.46 Cr asset write-off in other expenses (store consolidation) and a higher effective tax rate (~25% vs ~19% YoY).
- Excluding the write-off, core PBT would still be down ~4% YoY – underlying profitability remains under pressure.
- Full-year FY26 PAT of ₹59.12 Cr was down 60% YoY, reflecting a structural downturn in the business.
- Finance costs increased 6% YoY, adding to cost pressure.
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