Cantabil Retail India Ltd

Financial highlights

• Revenue from operations reached ₹853 crore in FY2025-26, up 18% YoY.
• EBITDA margin at 31%; EBITDA ₹264 crore.
• Gross margin rose to 60%; gross profit ₹515 crore.
• PAT ₹96 crore; PAT margin 11%.
• Revenue CAGR 22.2% since FY2021-22.

Store network and operations

• 652 stores across 308 cities; net additions 53.
• 238 family stores; 526 company-operated stores (81% network).
• COCO stores 81% of network; FOFO stores 126.
• Retail area 9.15 lakh sq ft; inventory days 126.
• Same-store sales growth 5.24%.

Vision 2027 and strategic priorities

• Vision 2027: ₹1,000 crore revenue, 725 stores, 330 cities.
• Online contribution target 8-10%; FY25-26 online ~6%.
• D365 ERP to unify data across stores and supply chain.
• Selective store expansion; focus on family-store productivity.

Dividends and capital allocation

• Final dividend ₹0.75 per share; interim ₹0.75 per share.
• Total dividend for FY2025-26 ~₹12.55 crore.
• AGM on 8 Sep 2026; record date 1 Sep 2026.

Capital structure and liquidity

• Net cash from operating activities ₹199 crore; debt-free external borrowings.
• Total debt including lease liabilities ₹54,410.7 lakh; net debt ₹51,871.9 lakh.
• Gearing ratio 52.04% at 31 Mar 2026.

Governance and risk management

• Board of 6 directors; 3 executive, 3 independent; independence confirmed.
• Audit Committee chaired by independent director; internal audit by Deloitte.

CSR and sustainability

• CSR expenditure ₹1.76 crore; 8 initiatives.
• Key CSR projects include Maharaja Agrasen Hospital, Bharat Lok Shiksha Parishad, 24x7 Care Foundation.

Outlook and risks

• India growth supports discretionary spending; margins exposed to raw materials and energy costs.
• Vision 2027 milestones require disciplined capital allocation and demand expansion.

Financials at a glance

• Revenue from operations ₹852.6 crore; YoY up 18%.
• EBITDA ₹264 crore; EBITDA margin 31%.
• Gross profit ₹515 crore; gross margin 60%.
• PAT ₹96 crore; PAT margin 11%.
• Net cash from operating activities ₹199 crore.
• EPS ₹11.45; ROE 22%; ROCE 40.2%.

Retail network and geography

• 652 stores across 308 cities; COCO 526, FOFO 126; 81% company-operated.
• Retail area 9.15 lakh sq ft; avg store ~1,403 sq ft.
• Same-store sales growth 5.24%; volume growth 13.33%.
• North & West contribute ~87% of FY2025-26 revenue.

Capital structure & liquidity

• Total debt incl. lease liabilities ₹544.1 crore; net debt ₹518.7 crore after cash.
• Cash and cash equivalents ₹25.1 crore; gearing 52.0%.
• Debt mainly lease liabilities; MD notes no conventional external borrowings.

Dividend & capital allocation

• Interim ₹0.75 and final ₹0.75 per share; total ₹1.50 per share.
• Record date 28 Aug 2026; payment by 7 Oct 2026.
• Total dividend expected ₹12.55 crore on 83.638 million shares.

Governance & risk management

• Board of 6 directors; 3 independent; 1 woman independent director.
• Audit Committee: 3 members; chaired by Arpana Jain.
• Risk Management Committee: 3 members; meets at least twice a year.
• Deloitte internal audit; strong internal controls; vigil mechanism in place.

CSR & ESG highlights

• CSR expenditure ₹1.76 crore; 8 initiatives.
• Major CSR: Maharaja Agrasen Hospital, Bharat Lok Shiksha Parishad, 24 X 7 Care Foundation.
• BRSR disclosures are available on Cantabil’s website; CSR policy accessible online.

Outlook & risks

• Vision 2027 targets ₹1,000 crore revenue, 725 stores, 330 cities.
• Risks: tariff headwinds, raw material costs, and supply-chain disruption.
• Omnichannel growth and disciplined capital deployment to drive margins.

AGM Details

• AGM on 8 Sept 2026 at 11:00 AM IST, in person at Palm Green Hotel, New Delhi.
• Register of Members and share transfer books closed from 31 August to 7 September 2026.

Resolutions

• Ordinary: Adopt audited financial statements for year ended 31 March 2026.
• Ordinary: Confirm interim dividend of 0.75 per share and final dividend of 0.75 per share.
• Ordinary: Appoint director in place of Basant Goyal (retiring by rotation).
• Special: Re-appoint Vijay Bansal as Chairman and Managing Director for five years from 1 April 2027.
• Ordinary: Re-appoint Deepak Bansal as Whole Time Director for five years from 1 April 2027.

Financial Performance

• Q1 FY27 standalone revenue up 13% YoY to INR 178.8 crores.
• Q1 EBITDA margin was 33% due to Ind AS impact.
• EBITDA margin target remains 30% plus for the full year.
• Same-store growth: 4.04% in Q1; full-year target about 5%.
• FY27 revenue target of INR 1000 crores on track.

Operational Update

• Average store size in Q1 was 1,810 square feet.
• Q2 store openings expected around 28–30.
• Online channel target is 8% of FY27 revenue; Q1 about 5%.

Costs and Margin Dynamics

• Gross margins expanded on product mix and inflation corrections; sustainability expected.
• Raw material prices risen about 10%; pass-through to customers.
• Wage hikes in Haryana/UP (~30–35%) already absorbed in Q1.
• No additional large wage impact expected beyond Q1.

Working Capital and Inventory

• Finished goods inventory days improved to 114 in FY26 from 121.
• Inventory: ~75% <1 year; ~20% 1–3 years; ~5% >3 years.
• FG inventory days around 110–114; working-capital days near 100.

Guidance and Outlook

• Long-term SSG target remains 5–6%.
• Q3 expected volume uptick due to Diwali; Q2 slower.
• FY27 online revenue share target 8%.

Q&A Highlights

• Q2 openings guided at 28–30; supports growth plan.
• FY27 revenue target reaffirmed at INR 1000 crores.
• Online share target raised to 8% for FY27.

Meeting Details

• Date: August 6, 2026.
• Type: group investor call.
• Mode: audio recording.
• Event/organiser: Cantabil Retail India Limited.
• Key company participant: Company Secretary & Compliance Officer.
• Purpose: recording of investor call.
• Recording: audio recording available.

Key management changes

• Re-appointment of Vijay Bansal as Chairman & MD; 37-year veteran; term Apr 1, 2027–Mar 31, 2032; shareholder approval.
• Re-appointment of Deepak Bansal as Whole-Time Director; 20-year retail veteran; term Apr 1, 2027–Mar 31, 2032; shareholder approval.
• Relationships disclosed: Deepak Bansal is Vijay Bansal’s son; Basant Goyal is Deepak Bansal’s brother-in-law.