Go Fashion (India) (GOCOLORS) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue was INR 194-195 crores, with gross margins at 64.3%, EBITDA at INR 52 crores (26.7% margin), and PAT at INR 7 crores (3.7% margin); 9M FY26 revenue was INR 642 crores, EBITDA INR 187 crores, and PAT INR 51 crores.

• Q3 FY26 was challenging due to lower footfalls, subdued discretionary consumption, and LFS partner disruptions, impacting SSSG and leading to cautious expansion.

• Non-leggings bottom-wear now contributes 65% of sales, up from less than 50% previously, reflecting an evolving product mix.

• Store expansion remains selective, with 49 stores added in 9M FY26 and a full-year target of 60-70 net additions; total EBOs reached 825.

• Board approved a buyback of 1,413,000 shares (2.62% of paid-up capital) at INR 460 per share, totaling INR 65 crores, with promoters excluded.

Financial highlights

• Q3 FY26 revenue: INR 195 crores; gross profit: INR 125 crores; gross margin: 64.3%; EBITDA: INR 52 crores (26.7% margin); PAT: INR 7 crores (3.7% margin); EPS: INR 1.33.

• 9M FY26 revenue: INR 642 crores; gross profit: INR 406 crores; EBITDA: INR 187 crores (29.2% margin); PAT: INR 51 crores (8% margin); EPS: INR 9.49.

• Cash and cash equivalents: INR 256 crores as of December 31, 2025.

• Q3 FY26 revenue and profit declined year-over-year; EBITDA and PAT margins also decreased.

Outlook and guidance

• Store expansion for FY26 expected to close at 60-70 net additions, with future expansion more selective and cautious.

• Focus on improving SSSG from negative to flattish, then to low single digits, prioritizing existing store productivity.

• Inventory levels targeted to stabilize at 100 days by year-end.

• Expansion pace for next year will depend on SSSG recovery; muted store openings expected in the near term.

• Monitoring regulatory changes, especially new Labour Codes, for potential accounting adjustments.