Kiaasa Retail Limited has released the transcript of its post-earnings conference call held on May 26, 2026, discussing the audited standalone financial results for the half-year and financial year ended March 31, 2026. The disclosure was submitted under Regulation 30 of the SEBI (LODR) Regulations, 2015. The management outlined a strategic expansion plan while reporting a 24% year-over-year growth in net profit for FY26.

Financial Performance

For the fiscal year ended March 31, 2026, the company reported total revenue from operations of ₹134.63 crore. The company achieved an EBITDA of ₹24 crore, reflecting a margin of 17.8%. Net profit for the period stood at ₹11.17 crore, representing a 24% increase compared to the previous year. The EBITDA margin expanded significantly from the previous year's range of 13-14% to 17.8%, driven by improved sourcing efficiencies and better vendor negotiations through bulk procurement.

Operational Highlights

Operationally, the company expanded its footprint to over 124 active Exclusive Brand Outlets (EBOs) across more than 70 cities as of May 2026. Same-store sales growth accelerated to 12.89%, and the customer base increased to over 5.5 lakh. The company operates in the Indian women's ethnic wear market, which is projected to reach ₹2.5 lakh crore by 2030 with a 7% annual growth rate.

Strategic Expansion and Guidance

The management has set a target to expand the network to 250 stores by 2028. To support this, the company plans to open 66 stores over the next two years using IPO proceeds, with a total allocation of approximately ₹46 crore for capital expenditure and inventory. The company aims for a revenue CAGR of 35% and an EBITDA CAGR of 45% by FY30. New initiatives include the introduction of the 'Kiaasa Divas' segment for young girls and bespoke DIY studio brands for custom ethnic wear.

Omni-Channel and Future Plans

Kiaasa Retail is evolving its omni-channel model, integrating digital storefronts with physical stores to optimize inventory management. Online sales currently contribute 1-2% of total revenue, with expectations to grow to 10-12% in the coming years. The company also plans to enter multi-brand outlets (MBOs) and large format stores (LFS) in FY27 to enhance brand awareness, despite lower margins compared to EBOs. Global expansion into markets such as Dubai, London, and Canada is planned for the next three to five years.

Kiaasa Retail Limited announced its audited standalone financial results for the year ended March 31, 2026, reporting a 24% year-on-year increase in net profit to ₹11.17 crore. The company, which listed on the BSE SME platform in March 2026, achieved robust operational leverage with EBITDA surging 46% to ₹24.00 crore and margins expanding by 432 basis points to 17.8%. Revenue from operations grew 10.7% to ₹134.63 crore, driven by strong festive season performance and store network expansion.

Financial Performance

The company delivered a strong financial performance for FY26, marked by significant margin expansion and bottom-line growth. EBITDA increased to ₹24.00 crore from ₹16.44 crore in the previous year, while the EBITDA margin expanded to 17.8% from 13.5%. Net profit (PAT) rose to ₹11.17 crore from ₹9.01 crore, with the PAT margin improving to 8.3% from 7.4%. Earnings per share (EPS) stood at ₹8.43 compared to ₹7.47 in the prior year.

Note: EPS growth reflects dilution from the March 2026 IPO. H2 FY26 PAT margin was impacted by increased finance costs and operating expenses related to store expansion.

Operational Highlights

Kiaasa Retail's operational metrics strengthened during the year, reflecting improved store productivity. Same Store Sales Growth (SSSG) accelerated to 12.89% from 7.11% in the prior year. The Average Selling Price (ASP) rose to ₹2,430 from ₹1,772, while the repeat purchase rate improved to 21% from 18%. The company's customer base exceeded 5,00,000, with a primary focus on women aged 22–45.

Balance Sheet and Cash Flow

The balance sheet reflects significant expansion driven by IPO proceeds. Total assets stood at ₹270.88 crore, up from ₹143.87 crore, while net worth increased to ₹109.06 crore from ₹40.59 crore. Inventories rose to ₹117.48 crore to support the store network scale-up and seasonal merchandise positioning. Cash and cash equivalents at the end of the year stood at ₹3,011.31 lakhs, compared to ₹270.38 lakhs at the beginning of the year.

Store Network and Strategy

As of FY26, Kiaasa Retail operated 124 active Exclusive Brand Outlets (EBOs) across 70+ cities, comprising 110 Company Owned Company Operated (COCO) stores and 14 Franchise Owned Franchise Operated (FOFO) stores. The company employs a four-tier store stratification strategy to maximize margins, with the core product portfolio anchored by Salwar-Kurta-Dupatta (SKD) sets, which account for 58% of revenue.

IPO and Future Outlook

Kiaasa Retail completed its Initial Public Offering on March 2, 2026, raising ₹69.72 crore through the issuance of 54,91,000 equity shares at ₹127 per share. The company has outlined an ambitious expansion strategy targeting 160 stores in 2026, 190 stores in 2027, and 250 stores by 2028. Management projects a Revenue CAGR of 35% and both EBITDA and PAT CAGR of 45% over the medium term, while evaluating international expansion opportunities.

Source: Company/INE1C3F01018/000ca88a-2136-472d-816e-a2a83edf20a1.pdf