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Baazar Style Retail Limited
NSE: STYLEBAAZA BSE: 544243 INE01FR01028 Consumer Discretionary Consumer 🔎 Screen
₹2,393 Cr
Market Cap
51.0
P/E
0.46
PEG
7.4%
ROCE
5.2%
ROE
2.21
D/E
14.3%
OPM
-13.3%
% from 52W High
60
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Incorporated in June 2013, Bazaar Style Retail Limited is a fashion retailer operating in West Bengal and Odisha.

✓ Strengths 2
  • Company is expected to give good quarter
  • Company has delivered good profit growth of 26.6% CAGR over last 5 years
! Concerns 6
  • Stock is trading at 5.11 times its book value
  • Though the company is reporting repeated profits, it is not paying out dividend
  • Company has low interest coverage ratio.
  • Promoter holding has decreased over last quarter: -0.90%
  • Company has a low return on equity of 7.09% over last 3 years.
  • Company might be capitalizing the interest cost
Key Ratios Snapshot
📊 Sector Averages
📈 Growth Pattern
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Mixed quarter: Revenue grew 35% YoY to ₹465.7 Cr but PAT turned to a loss of ₹25.6 Cr due to a one-time exceptional loss of ₹20.6 Cr on insurance settlement; EBITDA margin contracted 116 bps to 10.3%. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹465.7 Cr
+35% YoY
EBITDA Margin
10.3%
-116 bps YoY
PAT
₹-25.6 Cr
vs -₹6.4 Cr in Q4FY25, impacted by exceptional loss
Store Count
263
+23% YoY
What Went Right
  • Revenue grew 35% YoY to ₹465.7 Cr, driven by 23% store expansion and 3% same-store sales growth.
  • Full-year FY26 EBITDA increased 40% YoY to ₹264.1 Cr, with margin up 27 bps to 14.3%.
  • Full-year FY26 PAT surged 220% YoY to ₹46.9 Cr (pre-exceptional), reflecting underlying improvements.
  • Private label revenue reached 53% of total (₹977 Cr in FY26), up from 45% in FY25, aiding margin control.
  • Strategic investment of ₹331.53 Cr from Cupid Ltd provides capital for expansion to 500+ stores and debt reduction.
What to Watch
  • Q4 PAT swung to a loss of ₹25.6 Cr (vs loss of ₹6.4 Cr last year) due to a non-recurring exceptional loss of ₹20.6 Cr from full settlement of an insurance claim.
  • Q4 gross margin contracted 290 bps YoY to 30.2%, signaling pricing pressure or cost headwinds.
  • Q4 EBITDA margin declined 116 bps to 10.3%; on a pre-INDAS basis it was just 1.5% (down from 3.3%).
  • Cash and bank balances dropped from ₹22.1 Cr to ₹12.9 Cr during FY26, even as net operating cash flow was ₹125.5 Cr.
  • Full-year pre-INDAS PAT fell 14% YoY to ₹27.1 Cr, highlighting persistent financial leverage costs.
Management Guidance
  • Grow from 250+ to 500+ stores in the next three years.
  • Revised annual guidance: 60–80 new store additions annually (from earlier 40–50).
  • Part of the strategic investment proceeds will be used to repay or prepay borrowings, reducing finance costs.
Investor Lens
The thesis of a fast-growing value fashion retailer in Eastern India remains intact, given 35% revenue growth and continued store expansion to 263 outlets. However, Q4 margin deterioration—gross margins down 290 bps to 30.2% and EBITDA margin down 116 bps—raises concerns about pricing discipline and cost control. The strategic investment from Cupid Ltd is a positive catalyst for both expansion capital and product diversification into personal care, but it also increases dilution risk. Key watch items: ability to sustain gross margins above 33%, conversion of warrants within 18 months, execution of 60–80 annual store additions without margin dilution, and management of lease liabilities (₹647.5 Cr as of Mar-26) relative to equity (₹450 Cr). Next quarter’s margin trajectory and any impact of the Cupid partnership will be critical.
From investor presentation · AI-generated analysis · Not investment advice
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📉 WEAK Revenue up 35% YoY but net loss deepens to ₹26 Cr on weak margins
Revenue
Revenue stood at ₹466 Cr, rising 35.1% YoY but flat sequentially. Growth is strong on a yearly basis, though QoQ stagnation suggests a plateau.
Profitability
Net loss widened to ₹26 Cr from a loss of ₹6.1 Cr in the year-ago quarter (EPS: -₹3.44 vs -₹0.86). The bottom line was hurt by negative other income of ₹19 Cr and elevated interest/depreciation.
Margins
Operating margin contracted to 10% from 12% YoY and 19% QoQ, indicating cost pressure. Operating profit grew only 20% despite 35% revenue expansion.
Cash Flow
No data provided.
Balance Sheet
Total borrowings are high at ₹995 Cr against reserves of ₹413 Cr, resulting in a debt-to-equity ratio of 1.91. Total assets of ₹1,883 Cr are largely funded by debt, increasing financial risk.
Key Risks
Negative other income of ₹19 Cr is a red flag. Depreciation and interest costs (₹48 Cr and ₹18 Cr) consume a large portion of operating profit. A D/E of 1.91 and negative reserves-to-debt ratio amplify solvency concerns.
Outlook
Revenue growth may persist, but profitability hinges on margin recovery and reduction in non-operating losses. High leverage and weak cash flows pose challenges for near-term debt servicing.
Generated by AI · Mar 2026 results · Not investment advice
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