Go Fashion (India) Ltd, the maker of ‘Go Colors’, reported a muted performance for the first quarter of FY26, with consolidated net profit falling 22.4% year-on-year to ₹22.2 crore, compared to ₹28.6 crore in the same quarter last year.
The company attributed the decline to temporary headwinds in the Large Format Store (LFS) channel at key partner outlets and supply chain disruptions caused by the Bangladesh route blockade.
Revenue growth remained tepid, inching up just 1.4% YoY to ₹223 crore from ₹220 crore. Operating profit (EBITDA) slipped 4.2% to ₹69 crore, while EBITDA margin narrowed to 31% from 33% a year ago, impacted by operating leverage and uneven channel performance.
Despite the challenging environment, the company saw encouraging trends in the latter half of the quarter, especially during the End-of-Season Sale (EOSS). Gross margin improved to 63%, supported by easing raw material costs and a favourable product mix.
The average selling price (ASP) climbed to ₹805 in Q1FY26, driven by the company’s focus on value-added offerings and premiumisation.
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Same-store sales growth (SSSG) for exclusive brand outlets (EBOs) came in at -2%, while same-cluster sales growth stood at 1.4%. Go Fashion maintained a healthy full-price sell-through rate of 97%, reflecting strong unit economics. Inventory days stood at 98, with working capital days at 133.
The company added 27 new EBOs on a net basis during the quarter, taking its total count to 803 as of 30 June 2025. It remains on track to open ~120 new stores during the fiscal. It is also piloting new categories—women’s topwear and select men’s wear—across 15–20 stores, with the first Dubai store showing early promise.
Return on capital employed (Year) for the quarter stood at 17.3%, and return on equity (RoE) at 13.5%. Cash and equivalents stood at ₹247 crore.
Post the results, shares of Go Fashion closed near the day’s low at ₹744.80, down 9.56% on the NSE.
