Company Update :Baazar Style Retail Ltd By JM Financial Services
* Revenue growth of 71% in Q2FY26: Revenue grew 71% YoY to INR 5.3 bn (1% above our initial estimate) led 22% SSSG in Q2. Normalised SSSG (adjusting for high festive demand due to early arrival of Durga Puja) stood at 19%.
* Sales per sq ft increased 22% YoY: Sales per sq ft in Q2 grew 22% YoY to INR 865 per month, which is INR 10.4k on an annualised basis.
* Added 18 (net) stores in Q2FY26, ahead of initial estimate: Company added 20 new stores in Q2FY26 and closed 2 stores, taking the total to 250 stores by the end of Sep-25 (ahead our initial estimate). Total rental area grew ~38% YoY to 2.3 mn sq ft as on 30 th Sep-25. Average store size of new stores increased by ~8% to 10.2 k sq ft in Q2.
* We estimate ~700 bps YoY increase EBITDA margin (Pre-Ind AS) in Q2 to 8% led by ~30bps YoY gross margin expansion and better operating leverage. Accordingly, EBITDA (Pre-Ind AS) is expected to grow 13x YoY to INR 427 mn and report a PAT of INR 225 mn (vs 55 mn PAT loss in Q2FY25). EBITDA per sq ft is expected to increase by ~125% YoY to INR 346 per quarter.
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SEBI Registration Number is INM000010361
