Company Update : Baazar Style Retail Ltd By JM Financial Services
Blockbuster performance
* Robust revenue growth of 55% in Q4FY25: Revenue grew 55% YoY to INR 3.5 bn in Q4FY25 (10% above our initial estimate), resulting in 38% YoY growth to INR 13.4 bn in FY25. SSSG stood at 20%/13% in Q4FY25/FY25.
* Sales per sq ft continues to grow: Sales per sq ft in Q4 grew 19% YoY to INR 679 per month, which is INR 8,148 on an annualised basis. On full year basis, company clocked sales per sq ft of INR 721 per month, which is INR 8,652 on an annualised basis.
* Added 15 stores in Q4FY25: Company added 15 stores in Q4FY25 to total 214 stores by the end of Mar-25 (3 stores less vs. our initial estimate). Total rental area stood at 1.9 mn sq ft as on 31st Mar-25. Average store size of new stores increased by ~12% to 8.7k sq ft in Q4.
* We estimate ~110 bps YoY EBITDA margin (Pre Ind AS) expansion in Q4 to 3.3% despite ~30bps YoY gross margin contraction led by better operating leverage. Accordingly, EBITDA (Pre Ind AS) is expected to grow ~135% YoY to INR 114 mn and report a PAT of INR 18 mn. EBITDA per sq ft is expected to grow by ~115% YoY to INR 77 per month.
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SEBI Registration Number is INM000010361
