Thomas Scott (India) Ltd

Financial Performance

• Revenue from operations: INR 66 crores; YoY growth 22%.
• EBITDA: INR 9 crores; YoY growth 43%; EBITDA margin 13.07%.
• PAT: INR 5 crores; YoY growth 54%; PAT margin 8.21%.
• Own-brand revenue: ~INR 25 crores; YoY growth 34%.
• Licensed/other brands revenue: INR 38 crores; YoY growth 14%.
• Contract manufacturing: INR 4 crores; YoY growth 33%.
• Wholesale revenue: ~40% of Thomas Scott brands; about INR 10 crores booked.
• Aggregator/B2B2C: ~40% of Thomas Scott revenue; gross margin lower; EBITDA largely neutral.
• Own website contribution increased; AI-driven site; potential major channel ahead.

Segment and Channel Update

• Thomas Scott brands wholesale share ~40% of revenue; indicates growing aggregator penetration.
• B2C revenue share remains dominant at >94%.
• Women’s wear piloted; positioned as growth pillar with neutral-to-favorable unit economics.
• Quick commerce with Myntra M-Now; unit economics neutral; nascent stage; scale in 6–9 months.

Online vs Offline

• Offline Bangalore store EBITDA positive; online growth faster; selective store openings.
• Longer-term offline expansion planned; online remains primary growth engine.

Balance Sheet and Cash Flow

• Fire incident last year: Rs 21 crore stock insured; elevated working capital loans.
• Insurance claim processing underway; provisions recorded as exception items; settlement expected soon.
• Trade receivables decreased in Q1; insurance receivables unchanged; small exception item ~₹3–4 lakh.

Capex and Projects

• Capex is regular but not high; capacity largely in use; in-house manufacturing core.
• Docker’s brand focus: premiumization aligned; long-term plan to be top multi-brand online retailer globally.

Guidance and Outlook

• FY27 target remains the same; growth pace consistent with last two years; margins healthy.
• Potential further investments if opportunities arise while maintaining healthy margins.

Q&A Highlights

• Women’s wear to potentially double or triple revenue over the next year, with careful testing.
• Dockers strategic plan centers on B2C growth and premiumization; global B2C focus.
• Pricing: price elasticity subdued; ROI-driven price moves; marketing mix shifts with ROI.
• Aggregator channel: ~40% of Thomas Scott revenue via B2B2C; margins margin-neutral at EBITDA.
• Insurance claim and fire provisions: progress on claim settlement; finalization expected soon.

Meeting Details

• Date and time: August 17, 2026 at 12:00 PM IST.
• Type and mode: group earnings call, virtual.
• Event/organiser: Earnings call for Q1 & FY 2026-27 (organised by Thomas Scott (India) Limited).
• Purpose: Earnings results discussion.
• Recording availability: Audio recording hosted on company website.

Participants

• Key participant: Company Secretary and Compliance Officer.

Business Overview

• Online-focused retailer across 9+ channels; in-house manufacturing enables direct-to-consumer model.
• Vertically integrated, data-driven back-end guides design, cataloging, management, pricing and analytics.
• Own brand Thomas Scott plus licensed and international brands in B2C/B2B.

Operational Highlights

• Q1-FY27 revenue INR 658 Mn; YoY growth 22.1%.
• EBITDA INR 86 Mn; margin 13.07%.
• PAT INR 54 Mn; margin 8.21%.
• 4 manufacturing units; 60k shirts & 60k bottoms monthly.
• Pan-India fulfillment centers enable quick delivery; 2-day major urban deliveries.
• thread.ai and catalog.ai pilots; GenAI for pricing and merchandising.

Financial Performance

• Historical revenue: FY24 INR 911 Mn; FY25 INR 1,610 Mn; FY26 INR 2,549 Mn.
• EBITDA: FY24 INR 128 Mn; FY25 INR 194 Mn; FY26 INR 334 Mn.
• PAT: FY24 INR 100 Mn; FY25 INR 128 Mn; FY26 INR 193 Mn.
• PAT margins: 10.98% (FY24); 7.95% (FY25); 7.57% (FY26).
• Equity at FY26: INR 1,373 Mn; total liabilities INR 1,003 Mn.
• Inventories INR 858 Mn; Trade receivables INR 862 Mn; Cash INR 1 Mn.

Capital Structure & Liquidity

• Debt profile: current borrowings INR 450 Mn; long-term borrowings INR 15 Mn.
• Total equity INR 1,373 Mn; cash balance INR 1 Mn.
• Market cap around INR 4,916.8 Mn as of 30-Jun-2026.

Strategic Priorities & Outlook

• Ecommerce-focused growth with high-width, low-depth product launches.
• Expand licensed brands; pursue premiumization with international brands.
• Pilot thread.ai and catalog.ai; monetize technology for external use.
• Expand international sales channels; build quick commerce platforms.

Risks & Governance

• Pricing/demand elasticity remains guarded; mitigate via data-driven pricing and marketing.
• Macro backdrop and cautious consumer spend; diversify channels and inventory efficiency.
• Board comprises independent directors Usha Ghelani, Anuradha Paraskar, Kavita Chhajer; MDs Brijgopal and Vedant Bang.

Key financials

• Revenue from operations: Rs 6,581.84 Lacs for the quarter ended 30 Jun 2026.
• Total income: Rs 6,582.20 Lacs for the quarter ended 30 Jun 2026.
• Total expenses: Rs 5,890.37 Lacs for the quarter ended 30 Jun 2026.
• Profit before tax (before exceptional items): Rs 691.83 Lacs.
• Exceptional items: Rs 3.65 Lacs; Profit before tax: Rs 688.18 Lacs.
• Current tax: Rs 135.00 Lacs; Deferred tax: Rs 9.38 Lacs.
• Profit after tax: Rs 543.80 Lacs; Basic EPS: Rs 3.70; Diluted EPS: Rs 3.71.
• Single textile manufacturing and trading segment; export turnover nil.
• Paid-up equity share capital: Rs 1,467.04 Lacs; Reserves excluding revaluation: Rs 12 Lacs.
• Board approved unaudited results on 14 Aug 2026.

Meeting Details

• Date and time: 17 August 2026, 12:00 PM IST.
• Type and mode: group conference call, virtual.
• Organizer: Valorem Advisors to host the earnings conference call.
• Purpose: discuss Q1-FY2026-27 earnings.

Participants

• Key participant: Managing Director (E-commerce) will represent management.

Materials

• Audio recording and transcript will be published on the company website.

Meeting Details

• Board meeting on August 14, 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve the unaudited financial results for quarter ended June 30, 2026.
• Any other matter with the permission of the Chairman.

Other Notes

• Trading window to remain closed from July 01, 2026 until 48 hours after results declaration.

Dematerialisation reporting

• KFIN Technologies certified that dematerialisation/rematerialisation details for June 30, 2026 quarter were furnished to exchanges.
• CDSL and NSDL certified furnishing dematerialisation/rematerialisation details for June 30, 2026 quarter to exchanges.