loading
loading
Go Fashion Q2 results: Profit drops 59% to ₹9 crore, shares fall over 6% - Published OnOct 30, 2026 | 14:39 IST - Last Updated OnOct 30, 2026 | 14:39 IST A shift in the festive calendar delayed large-store dispatches, while rising fabric costs squeezed operational margins. Management plans to offset raw material inflation through calibrated pricing actions while accelerating larger-format store expansion. Discover how early festive demand is shaping third-quarter momentum. Shares of Go Fashion (India) fell over 6% on Friday, October 30, after company reported a 59% year-on-year decline in consolidated net profit to ₹9 crore for the second quarter of FY27. Revenue from operations also declined 3% to ₹217.6 crore, compared with ₹224 crore in the corresponding quarter last year. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) fell 21% year-on-year to ₹53 crore, against ₹66.8 crore in Q2 FY26. EBITDA margin contracted to 24.2% from 29.8% a year ago. According to the company's exchange filing, Go Fashion incurred an exceptional expense of ₹3.4 crore during the quarter, relating to the write-off of capital expenditure following store closures undertaken as part of its strategy to optimise its store network. Festive calendar shift weighs on revenue Commenting on the results, Gautam Saraogi, CEO of Go Fashion (India), said the second quarter and first half of FY27 saw the company continue to build on its strategic priorities, although the quarter was impacted by a shift in the festive calendar. With key festivals moving into the third quarter, bulk dispatches to large-format store (LFS) partners, which typically take place ahead of the festive season, shifted to October, affecting quarterly revenue. Saraogi said the company's exclusive brand outlet (EBO) channel continued to grow despite the change in festive timing, while same-store sales growth (SSSG) remained flat. "The festive season has started on a good note, and we will be better placed to assess its full impact once the period concludes," he said. Higher raw material costs weigh on margins Go Fashion's gross margin stood at 60.8% during the quarter. The company attributed the decline in gross margins to higher raw material prices, with fabric costs rising due to the geopolitical situation. Saraogi said the company intends to pass on the raw material inflation through calibrated pricing actions, which are expected to help restore gross margins progressively over the coming quarters. Go Fashion reiterates FY27 outlook The company's priorities for FY27 remain unchanged. These include sustaining same-store sales growth momentum, accelerating the transition towards larger-format stores, refreshing its product range, and scaling its Daily Wear and international initiatives, Saraogi added. Saraogi said the company remains confident that these efforts will translate into stronger performance through the year.
document fetched 2026-10-31 02:56 · canonical https://cnbctv18.com/market/go-fashion-q2-results-profit-drops-59-pc-9-shares-fall-over-6-pc-20023253.htm