Baazar Style Q1 FY27 Results (NSE: STYLEBAAZA)
Signal: Growth decelerated
The read
The trajectory remains scale-led: revenue grew 28.7% YoY on 19% store growth, private-label revenue grew 31% and focus-market revenue 50%, but EBITDA growth of 23.4% lagged revenue and EBIT fell 12.9%; the key inflection to monitor is whether private-label mix rising from 61% to 62% can convert expansion into sustained margin and PAT growth rather than relying on other income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹486.38 Cr | 28.7% | 4% |
| EBIT | ₹23.61 Cr | -12.9% | |
| Net profit | ₹2.23 Cr | 8.3% | |
| EPS | ₹0.3 | 7.1% | |
| EBIT margin | 15.5% |
P&L walk
Revenue increased to ₹486.38 Cr, +28.7% YoY and +4% QoQ, but EBITDA grew slower at +23.4% and EBIT declined 12.9% YoY to ₹23.61 Cr; PAT rose 8.3% to ₹2.23 Cr and was materially supported by other income equal to 104.8% of PBT.
Key positives
- Revenue reached ₹486.38 Cr, +28.7% YoY, supported by 276 stores, up 19% YoY, and a 22% increase in rental area to 2.58 Mn sq. ft.
- Private-label revenue grew 31% YoY to ₹3,006 Mn and contribution increased to 62% from 61%, supporting the stated long-term margin-accretion strategy.
- Focus-market revenue increased 50% YoY to ₹1,086 Mn and contribution rose to 22% from 19%, indicating faster growth outside the core markets.
- The 7-8% SSSG and 25% FY27 revenue-growth targets provide measurable operating milestones for the expansion strategy.
Key concerns
- EBITDA grew 23.4% YoY versus revenue growth of 28.7%, while EBIT declined 12.9% to ₹23.61 Cr, showing weak conversion below the EBITDA line.
- PAT of ₹2.23 Cr grew only 8.3% YoY, materially below revenue growth, and other income of ₹3.49 Cr represented 104.8% of consolidated PBT.
- The filing highlights volatile raw-material costs and the need for sourcing diversification and selective cost mitigation, leaving gross-margin resilience unquantified.
- The planned addition of 50-70 stores in FY27 raises execution and capital-allocation demands while the current quarter's EBIT declined 12.9% YoY.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.