Redtape · risk themes across the available quarters.
Bear-case history
Flipkart/Myntra changed mid-year how rebates are accounted for—now adjusted against top line rather than recognized as other income. While net P&L impact is nil, it distorts reported gross margins and complicates peer comparisons.
Management acknowledged cost pressures but noted 6-month PO-to-production cycle provides 6-month cost coverage. Any raw material volatility will impact from September 2026 onwards. No price increases planned currently.
Analyst explicitly asked about sharp reduction in payable days from ~90+ days to 55 days versus last year. Management deferred the question: 'We will have to come back on this.' This remains an unresolved balance sheet item.
Analyst asked for category-level margin breakdown (footwear vs apparel). Management declined: 'We have not calculated margin as per the category because everything for us is under the same umbrella.' Unable to assess apparel profitability or cross-subsidization.