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 e...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
79%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Why does 30% revenue guidance imply only ~16% H2 growth?
Asked by Goro Jagani, JM Financial
Management acknowledged the math but did not explain how H2 growth would be achieved, citing conservatism.
acknowledged math but no specific H2 breakdowndeferred to conservative approach
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Question
Now even if I take the higher end of the guidance at 30%. That would mean that you know H2 revenue growth would be somewhere in the range of around 16% only. So uh so just wanted to have your thoughts on the same uh that do we expect significant deceleration in H2 uh to have the guidance of 30%.
Management (unidentified)
So yeah obviously the Q3 though I think we are Dulga Puja is a significant cultural and commercial event in the eastern India but I think uh our business model is not planned on it but again Ja puja plays a very important role for us so Q2 becomes a bigger quarter across all the quarters uh but while saying that I think uh we have grown at a 55% yearon year and uh the guidance that we have revised from 2130 is again as I said key We have a conservative approach towards the revenue.
Answered
High priority
What are the revised PAT and EBITDA margin guidance for the year?
Asked by Goro Jagani, JM Financial
Management clearly stated that PAT and EBITDA guidance were not revised, only revenue guidance was revised.
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Question
Uh and uh sorry I missed out on the guidance that you also revised for the pre-index margins. Uh both the pre-industa and the pad margins for the year. If you can just reiterate that.
Management (unidentified)
So, so we have not revised the guidance uh we have set key on the index uh because the PAT with the exceptional gain it will be more so without exceptional gain the PA for ind is between 2 to 3% only. So we have not revised the guidance for PAT or EIA but the guidance has been only for the revenue.
Answered
High priority
What is the expected gross margin for the full year and H1 expansion?
Asked by Goro Jagani, JM Financial
Management provided specific full-year gross margin guidance of 34% and 50 bps expansion.
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Question
Uh have you given the number for the AIA also the reported uh AITA margin what you are looking out uh the reason for asking this is uh you know if we look at the gross margins also your gross margins for H1 has expanded by 150 bits. So so how should one look at the gross margins here?
Management (unidentified)
So the gross margin for the entire year uh as we have already communicated in the earlier call it will be 50 pips only because uh there Q4 there will be another USS of winter. So the margin uh will be around so uh 34% overall. So for the full full financial it will be a 15% increase 50 right.
Partial answer
Medium priority
Will tech costs be capitalized or expensed? What is rent per sq ft?
Asked by Goro Jagani, JM Financial
Management gave rent per sq ft but did not clearly specify which tech costs are capitalized vs expensed.
no clear split between capitalized vs expensed tech costsrent per sq ft given but not fully detailed
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Question
Uh you have also highlighted that you know you'll be spending 20 to 25 KS towards tech and all so so two parts to this one the tech cost would be uh capitalized or would it be taken to the P&L and also on the rent per square ft.
Management (unidentified)
So in terms of when first uh as I was already mentioned the earlier cost it depends on the tier that you are opening the stores in. So for us uh 57 56 to 57 rupees is the annual rental per square ft for this entire year in in terms of uh per square foot rental that we that is we going to charge on the PL and in terms of uh capital expenditure on the tech. So again it's divided into two parts.
Answered
Medium priority
Will inventory days continue to decline?
Asked by Pesh Kaval, Noama Wealth
Management confirmed inventory reduction trend and expects further improvement by March.
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Question
So inventory has uh came down. uh do you expect this to go like this trend to go further and inventory to come down in ter in terms of number of days?
Management (unidentified)
Yeah. So we for the September as as it's as the plan that we have in our mind we have been able to execute and as a result you can see that the inventory per square has reduced by 246 rupees from last year and uh I believe that uh the ARS system and the thing that we are implementing on the tech side uh we are working on reducing it further. So you will see that in uh expect in the 31st March also.
Answered
High priority
What is the PAT target for FY27?
Asked by Pesh Kaval, Noama Wealth
Management clearly stated PAT target of 4-5% for FY27.
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Question
Uh what can we expect on the pad side on the ported pad side for next year FI27 is expected to go towards four to 5%.
Management (unidentified)
So the target by for is between 4 to 5% the pet.
Evasive
High priority
Why is revenue guidance conservative given 25% inventory growth?
Asked by Pesh Kaval, Noama Wealth
Management declined to answer, saying they will provide clarity after Q3.
deferred to next quarterrefused to comment on H2 growth
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Question
Won't even at least a 20% growth be possible for H2?
Management (unidentified)
See uh as I again I am retwing myself that uh as a plan uh we have taken 30% for the entire year out of which I think the first 6 months we have achieved 55%. So from 25 already gu and because this quarter will be the big season for us uh because it has got all the winter wedding ch um so I think after going this quarter only I will be able to give that answer to you your question I don't want to comment something uh I don't know but I think this is a big quarter for us so let this quarter go then only I will uh next call I will tell you the answer for this question.
Partial answer
Medium priority
What is the ramp-up time and SPSF for new stores?
Asked by Shans J, Swan Investments
Management discussed factors affecting SPSF but did not provide a clear ramp-up timeline or specific SPSF progression.
no specific ramp-up timeline givengeneral description without numbers
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Question
Typically when you open new store uh how how is the SPSF of that store? Can you explain the ramp up time a new store takes to uh uh reach the matured store?
Management (unidentified)
So see in terms of SPSF it uh again depends on the tier that you are opening what we have seen in last two years uh because as a strategy uh we have taken two approach one is to open more stores in metro and tier one also because uh that cities give us higher SPSF and second uh to open in the same cities where we are located. So that is also giving us a good profitability in terms of a simple business model if I say.
Answered
Medium priority
Update on insurance claim for fire incident?
Asked by Shira, Keynote Capitals
Management provided specific update: asset part received (3.48 cr), inventory claim in progress.
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Question
One thing I would like to know is the update on the insurance money which which we are expected to receive uh due to the fire incident. Is there any update on that?
Management (unidentified)
Thank you Shira. Uh so on the insurance claim uh as you said last call also that we have received already the asset part which is 3.48 48 cr and in relation to the inventory the company has submitted all the documents uh related to the insurance claim and the assessment process by the insurance is in progress.
Answered
High priority
What is the PAT guidance on Ind AS basis for next year?
Asked by Deepak Pod, Safire Capital
Management confirmed PAT guidance of 3-4% on Ind AS basis for next year.
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Question
Next year Pat M you said on pre-India's 4 to 5% on India's what is the expectation 3 to 4%.
Management (unidentified)
Okay 3 to 4% on India's basis
Answered
High priority
What is the private label margin differential and target share?
Asked by Deepak Pod, Safire Capital
Management provided specific target (65% by FY27) and margin differential (0.75-1.5%).
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Question
In terms of private labels um so currently we are at about 59%. So any aspiration we have I mean over next three years guys we want to take this private labels and what's the private level margin differential versus the other brands.
Management (unidentified)
So sir I have said in my earlier call also our expectation is to reach to 65% of the sales coming from private label by FI27. Uh in terms of margin uh right now we want to scale our private labels rather one of our private labels square app has already touched 227 crores of revenue for first 6 months this year itself and idea is to scale these labels in terms of margin differentiation as of now we have a difference of uh in different private labels between 75 to 1.5%.
Answered
High priority
What is the breakdown of store-level vs corporate EBITDA margin?
Asked by Hitendra Pradhan, Maximal Capital
Management provided specific store-level EBITDA (12.83%) and HO cost (6%) for H1.
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Question
If you can give us the bifocation like of your store level margin and you know your uh corporate expenses or just a color on the corporate expense and what part what was due to the employees that you're hiring.
Management (unidentified)
So in terms of uh company at the company level our uh total IITA stands at 6.8% on pre-index out of which the store stands at 12.83%. And 6% is the HO cost for the first half of this year.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Revenue growth guidance revised to 25-30% for the year | 30% | 71% | Understated vs filing |
| PAT guidance without exceptional gain is 2-3% on Ind AS | 2.5% | 51% | Understated vs filing |
| PAT target for FY27 is 4-5% on pre-Ind AS | 4.5% | 51% | Understated vs filing |
| PAT guidance on Ind AS basis for next year 3-4% | 3.5% | 51% | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.