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Geographic concentration in eastern India
View Risks →Baazar Style Retail Limited — Q2 FY26
Baazar Style Retail delivered a stellar Q2 FY26 with revenue surging 71% YoY to ₹532 crore and EBITDA jumping 184% YoY to ₹69 crore, driven by early festival demand and strong execution.
bullish
high
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2-Minute Summary
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Baazar Style Retail delivered a stellar Q2 FY26 with revenue surging 71% YoY to ₹532 crore and EBITDA jumping 184% YoY to ₹69 crore, driven by early festival demand and strong execution. Same-store sales growth of 22% and private label contribution reaching 58% underscore operational momentum. Management revised FY26 revenue guidance upward to 25-30% YoY, while maintaining pre-Ind-AS EBITDA margin guidance of 7-8% and PAT margin of 3-4%. A one-time exceptional gain of ₹55 crore from lease reassessment boosted reported profits. Key risks include geographic concentration in eastern India causing quarterly volatility and potential winter demand unpredictability. The company remains on track to open 40-50 stores this year, with a long-term aspiration of 25% annual revenue growth.
बाजार स्टाइल रिटेल ने दूसरी तिमाही में शानदार प्रदर्शन किया। कमाई 71% बढ़कर ₹532 करोड़ हो गई, जबकि मुनाफा 184% बढ़कर ₹69 करोड़ पहुंचा। त्योहारों की मांग और अच्छी रणनीति से यह संभव हुआ। पुरानी दुकानों से बिक्री 22% बढ़ी और कंपनी के अपने ब्रांड का योगदान 58% रहा। कंपनी ने इस साल कमाई 25-30% बढ़ने का अनुमान लगाया है। मुनाफा 7-8% और शुद्ध मुनाफा 3-4% रहने की उम्मीद है। एक बार का ₹55 करोड़ का फायदा लीज़ के पुनर्मूल्यांकन से हुआ। जोखिम: पूर्वी भारत पर निर्भरता और सर्दियों की मांग अनिश्चितता। कंपनी इस साल 40-50 नई दुकानें खोलने की योजना पर है।
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Read Transcript →Quarter Snapshot
Same-store sales growth (SSG)
22%
+22pp YoY
SSG for Q2 FY26 was 22%, reflecting strong underlying demand despite festival timing shifts.
Private label contribution
58%
+13pp YoY
Private label sales contributed 58% of revenue in Q2 FY26, up from 45% a year ago.
Inventory days
86 days
-22 days YoY
Inventory days reduced to 86 from 108 a year ago, driven by technology investments.
Sales per square foot (SPSF)
₹865
+22% YoY
SPSF improved to ₹865 in Q2 FY26 from ₹708 in Q2 FY25, indicating better store productivity.
What Changed vs Last Quarter
UPDATED
FY26 revenue growth revised to 25-30%
Management raised FY26 revenue growth guidance from 21-30% to 25-30% YoY, citing strong H1 performance.
UPDATED
Pre-Ind-AS EBITDA margin guidance of 7-8%
Pre-Ind-AS EBITDA margin for FY26 is guided at 7-8%, reflecting operational discipline.
UPDATED
Pre-Ind-AS PAT margin guidance of 3-4%
Pre-Ind-AS PAT margin for FY26 is guided at 3-4%, excluding exceptional gains.
UPDATED
Store addition target of 40-50 in FY26
Management reiterated plans to open 40-50 new stores in FY26, with 36 already added in H1.
DROPPED
SSG of 7-8% for FY26
Same-store sales growth expected at 7-8% on a full-year basis, despite Q1 reported negative SSG.
NEW RISK
Geographic concentration in eastern India
High dependence on West Bengal and Assam leads to quarterly revenue volatility due to festival timing shifts.
NEW RISK
Winter demand unpredictability
Winter sales, a key driver for Q3, are weather-dependent and could be impacted by unseasonal climate changes.
NEW RISK
Potential deceleration in H2 growth
Analysts flagged that the 30% full-year guidance implies H2 growth of only ~10-11%, raising concerns about sustainability.
NEW RISK
Lease reassessment one-time gain not recurring
The ₹55 crore exceptional gain from lease reassessment is non-recurring, and reported PAT may appear inflated.
RISK GONE
Reduced cross-border footfall from Bangladesh
Management noted that the absence of Bangladeshi shoppers due to government policy impacted sales in West Bengal, though targets were still met.
RISK GONE
Gross margin normalization after Q1 spike
Q1 gross margin expanded 300bps YoY, but management expects only 50bps expansion for the full year, implying margin compression in subsequent quarters.
RISK GONE
Rising rental costs in metro/Tier-1 stores
Rental per sq ft increased to 54 from 45 YoY due to more store openings in higher-rent areas, with 12-15% escalation clauses every 3 years.
RISK GONE
Insurance claim settlement delay
Inventory loss claim of 4.24 crore is still under process; only 3.48 crore received for asset loss, with no timeline for inventory claim resolution.
Fast read
Guidance and risk preview
Management raised FY26 revenue growth guidance from 21-30% to 25-30% YoY, citing strong H1 performance.
High dependence on West Bengal and Assam leads to quarterly revenue volatility due to festival timing shifts.
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