Own brand Thomas Scott revenue
₹27 Cr
+91% YoY
Own brand revenue grew 91% YoY to ₹27 crore, reflecting strong D2C franchise and assortment planning.
THOMASSCOTT
Diversified
10 Feb 2026
Thomas Scott Ltd — Q3 FY26
Thomas Scott delivered a strong Q3 FY26 with revenue of ₹56 crore (+46% YoY) and PAT of ₹5 crore (+67% YoY), despite a warehouse fire that management estimates cost 15-20% of potential revenue.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Thomas Scott delivered a strong Q3 FY26 with revenue of ₹56 crore (+46% YoY) and PAT of ₹5 crore (+67% YoY), despite a warehouse fire that management estimates cost 15-20% of potential revenue. The own brand Thomas Scott grew 91% YoY to ₹27 crore, while licensed brands rose 18% and contract manufacturing surged 113%. Management highlighted a test-and-scale model with low inventory risk and a focus on the mass-premium online segment (ASP ₹800-1,200). Guidance includes maintaining EBITDA margins of 12-15% and targeting long-term receivable days of ~60. Key risks include elevated receivables (71 crore, ~100 days) and potential insurance claim delays. The company remains optimistic about Q4 demand, driven by festive season and winterwear traction.
Key Numbers
Winterwear contribution in December
35%
N/A
Winterwear contributed 35% of revenue in December, indicating successful category expansion.
Customer return rate
~20%
N/A
Customer returns are ~20%, lower than industry average of 28-30%, driven by superior quality.
RTO rate
6-9%
N/A
Return-to-origin rate is 6-9%, below industry 10-20%, due to localized inventory and fast delivery.
Management Guidance
EBITDA margin target of 12-15%
Management targets EBITDA margins between 12-15% at any point, with potential improvement as scale increases.
Management guidance marginsLong-term receivable days target of ~60 days
Management expects receivable days to settle around 60 days under current accounting practices as contracts transition to direct B2C.
Management guidance otherContinued growth trajectory similar to current
Management expects to maintain a similar growth trajectory, with revenue and margin projections consistent with recent performance.
Management guidance growthKey Risks
Elevated receivables and working capital strain
Trade receivables rose to ₹71 crore (~100 days), driven by revenue concentration in month-end and B2B2C models. Management targets 60 days long-term but no timeline given.
medium · analyst_questionWarehouse fire impact and insurance claim uncertainty
A fire at the Dandi warehouse caused inventory loss of ₹21.85 crore (fully insured). Management estimates 15-20% revenue loss but claim settlement timeline is unclear.
medium · management_commentaryInventory obsolescence risk from high SKU count
SKU count reached 31,216, raising concerns about slow-moving inventory. Management relies on test-and-scale and end-of-season sales, but tail inventory risk persists.
low · analyst_questionNotable Quotes
We believe that long-term receivable would settle at somewhere around 60 days.
Our customer returns are quite low... approximately close to 20%, which is lower than 28 to 30% that most other apparel brands experience.
We are targeting EBITDA margins between 12 to 15% at any point of time.
Frequently Asked Questions
What was Thomas Scott's revenue in Q3 FY26?
Thomas Scott reported revenue of ₹56 Cr in Q3 FY26, representing a +46% change compared to the same quarter last year.
What guidance did Thomas Scott management give for FY27?
EBITDA margin target of 12-15%: Management targets EBITDA margins between 12-15% at any point, with potential improvement as scale increases. Long-term receivable days target of ~60 days: Management expects receivable days to settle around 60 days under current accounting practices as contracts transition to direct B2C. Continued growth trajectory similar to current: Management expects to maintain a similar growth trajectory, with revenue and margin projections consistent with recent performance.
What are the key risks for Thomas Scott in FY27?
Key risks include Elevated receivables and working capital strain — Trade receivables rose to ₹71 crore (~100 days), driven by revenue concentration in month-end and B2B2C models. Management targets 60 days long-term but no timeline given.; Warehouse fire impact and insurance claim uncertainty — A fire at the Dandi warehouse caused inventory loss of ₹21.85 crore (fully insured). Management estimates 15-20% revenue loss but claim settlement timeline is unclear.; Inventory obsolescence risk from high SKU count — SKU count reached 31,216, raising concerns about slow-moving inventory. Management relies on test-and-scale and end-of-season sales, but tail inventory risk persists..
Did Thomas Scott meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Thomas Scott Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.