Earnings Call Transcript - Q1 FY2027

August 05, 2026 BSE Limited National Stock Exchange of India Ltd. Scrip Code: 543401 Trading Symbol: GOCOLORS Dear Sir / Madam, Subject: Transcript of Earnings call – Q1 FY 27 We hereby enclose the transcript of earnings call for the financial results for the quarter ended 30th June, 2026. This is for your information and records. Thanking You, For Go Fashion (India) Limited Gayathri Kethar Company Secretary & Compliance Officer “Go Fashion (India) Limited Q1 FY27 Earnings Conference Call” July 30, 2026 MANAGEMENT: MR. GAUTAM SARAOGI –CHIEF EXECUTIVE OFFICER –GO FASHION (INDIA) LIMITED MR. R. MOHAN – CHIEF FINANCIAL OFFICER –GO FASHION (INDIA) LIMITED SGA - INVESTOR RELATIONS ADVISORS–GO FASHION (INDIA) LIMITED Page 1 of 11 Go Fashion (India) Limited July 30, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Go Fashion India Limited Q1 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that, this conference is being recorded. I now hand the conference over to Mr. Gautam Saraogi, CEO, Go Fashion India Limited. Thank you, and over to you, sir. Gautam Saraogi: Yes. Good evening, and warm welcome to everyone present on the call. Along with me, I have Mr. R. Mohan, our Chief Financial Officer; and SGA, our Investor Relations advisors. I hope you have all received our investor deck by now. For those who have not, you can view them on the stock exchange and the company website. On the last call, we laid five clear principles and priorities for FY27. I want to spend a few minutes giving you a sense of where we stand on each of these one quarter in. Priority one was turning SSSG positive. This was our single most important commitment for the year, and I'm pleased to share that we have started FY27 on the right note. Same-store sales growth for our EBO channel turned positive this quarter at 0.6% and same cluster sales growth was at 1.2%. This was the first positive SSSG in several quarters. It's still early to call this as a firm trend after just one quarter, but it's moving in the right direction we wanted, and it keeps us optimistic for the coming quarters. Priority two was to migrate to larger sized stores. We continue to make progress here. Despite the quarter, during the quarter, we closed 66 stores in the catchments where we already have or we are going to be opening a larger format store nearby. As a result, our total retail space reduced by 7,000 square feet in this quarter, even as we continue to add larger stores elsewhere in the network. Based on our current review, we will continue `this transaction over the rest of FY27. Larger stores can hold a full range and give customers a much better premium experience as far as shopping is concerned. We are also continuing to upgrade the look and feel of our existing stores through the year. Our store expansion strategy will continue to remain calibrated and selective with a clear focus on entering high potential locations across Tier 1, Tier 2 and Tier 3 cities. Over the next five years, we aim to significantly expand our footprint with potential to double the square feet deployed in the business. This new business strategy will lead to revenue maximization and cost optimization. Priority 3, refreshing the product portfolio. We continue to refresh our product portfolio with new additions, and we will add new styles aimed at a younger trend-conscious customer. Over Page 2 of 11 Go Fashion (India) Limited July 30, 2026 FY27, we plan to add 10 to 12 new refreshing products for our customers, not just like extension, but genuinely new format that will open up new purchase occasions and consumer cohorts. Our aspiration is clear to be a definitive one-stop destination for women's bottom wear in India. We have onboarded Shraddha Kapoor as our brand ambassador from July. This is intended to strengthen the brand resilience and bring us to a wider younger audience. You'll see this reflected more visibly across our marketing and stores over the next coming months. The Priority 4 was expanding our new pilot daily wear concept. We currently have 15 stores of the new daily wear concept. We remain committed to our target of scaling our daily wear stores to about 25 stores to 30 stores by the end of FY27. The unit economics continue to hold up well in the stores where we have gone live. Our Priority 5 is LFS channel recovery. This is another area where we saw genuine progress. Our LFS channel grew 2% on a year-on-year basis to INR50 crores, a clear signal of returning to some sort of normalcy after a difficult FY26 that included operational disruptions with a key LFS partner. We continue to work closely with our LFS partners on assortment, placement and sell-through to ensure channel contributes meaningful to the growth for the balance of the year. So across all five priorities, Q1 has given us an encouraging set of data points. Coming to financial performance. Our revenue and gross margins remained stable compared to Q1 last year. I want to flag one specific item in the P&L this quarter, an exceptional expense of INR6.5 crores relating to the write-off of capital expenditure on account of the store closures we did during the quarter. This is a direct consequence of network consolidation strategy and is a one-off item. EBITDA before exceptional items stood at INR67.4 crores, a 2% degrowth. The moderation was largely on account of incremental marketing investment we took during this quarter, including the brand ambassador partnership. Our advertising spend as a percentage of revenue stood at 2.3% for Q1 FY27, and we expect it to remain in the same range between 2% and 3% in FY27. Full price sales for the quarter stood at a strong 94% and our average selling price came to about INR863. Our working capital days stood at 139 days with inventory days at 100 days. We believe there is room to optimize this further by a few more days, which will contribute to a strong balance sheet and support long-term sustainable growth. To sum up, Quarter 1 FY27 was a quarter where we began to see some progress against each of the five priorities we set out for the year. SSSG turned positive, our store transition, our product and brand initiatives, including getting our brand ambassador partnership underway, our daily wear concept and LFS showing some genuine signs of recovery. We are very conscious that one quarter does not make a trend, and we intend to stay disciplined and measured as we build on this momentum through the rest of the year. But we are encouraged by the direction and we remain confident that in the underlying strength of the business, Go Colors continues to be one of the most recognized and trusted names in women's bottom wear Page 3 of 11 Go Fashion (India) Limited July 30, 2026 in India, operating in a category where organized players still have a long runway ahead given low penetration levels that persist. With this, I would like to hand over the call to our CFO, Mr. R. Mohan, for update on Quarter 1 FY27 results and financials. Thank you. Mohan: Thank you, Gautam, and good evening, everyone. I'll give you the financial highlights for Q4 FY26. Revenue stood at INR223 crores, flat year-on-year. Gross profit stood at INR140 crores with a GP margin of 62.9%. EBITDA before exceptional expense stood at INR67 crores. EBITDA margin stood at 30.3%. PAT stood at INR16 crores. ROCE and ROE excluding Ind AS impact stood at 10.8% and 7.9%, respectively. Cash and cash equivalents stood at INR202 crores as on 30th June 2026. With this, now we open the floor for question-and-answers. Moderator: Thank you very much. Now we’ll begin the question-and-answer session. The first question is from the line of Sameer Gupta from India Infoline. [Showing first 8,000 characters — download PDF for full document]