Company Update : Baazar Style Retail Ltd By JM Financial Services
Strong revenue performance led by store expansion
* Revenue growth of 37% in Q1FY26: Revenue grew 37% YoY to INR 3.8 bn (6% above our initial estimate). It clocked -3% SSSG in Q1FY26, while after adjusting the impact of Eid, SSSG stood at 11% in Q1.
* Sales per sq ft remains largely flat YoY: Sales per sq ft in Q1 grew 0.4% YoY to INR 664 per month, which is INR 8k on an annualised basis.
* Added 18 stores in Q1FY26: Company added 18 stores in Q1FY26 to total 232 stores by the end of Jun-25 (in line vs. our initial estimate). Total rental area stood at 2.1 mn sq ft as on 30 th Jun-25. Average store size of new stores increased by ~20% to 10.7k sq ft in Q1.
* We estimate ~180 bps YoY EBITDA margin (Pre Ind AS) contraction in Q1 to 6.2% despite ~30bps YoY gross margin expansion due to weak operating leverage. Accordingly, EBITDA (Pre Ind AS) is expected to grow 6% YoY to INR 234 mn and report a PAT of INR 88 mn (7% decline YoY). EBITDA per sq ft is expected to decline by ~22% YoY to INR 116 per quarter.
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SEBI Registration Number is INM000010361
