Praxis Home Retail Q1FY27 Results: Revenue up 13% YoY, loss narrows
- Revenue from operations rose 13% YoY and 8% QoQ to ₹2,660 lakhs in Q1FY27
- EBITDA loss narrowed 88% YoY to ₹69 lakhs, with EBITDA margin improving 2100 bps YoY to -3%
- Retail LFL growth stood at +33.3% YoY; revenue per sq ft per month grew 42.3% YoY
- Gross profit rose 47% YoY to ₹1,150 lakhs, though gross margin contracted 250 bps QoQ to 43.2%
- All 13 stores recorded EBITDA improvement YoY; homeware LFL grew 59% YoY
*this image is generated using AI for illustrative purposes only.
Praxis Home Retail reported revenue from operations of ₹2,660 lakhs for Q1FY27, up 13% YoY and 8% QoQ, as the company continued its turnaround under the HomeTown brand.
Total income for the quarter stood at ₹2,793 lakhs, down 5% QoQ, weighed by a sharp decline in other income to ₹132 lakhs from ₹453 lakhs in Q4FY26, attributed to one-time vendor settlements in the prior quarter. Gross profit rose to ₹1,150 lakhs, up 47% YoY, though gross margin contracted to 43.2% from 45.7% in Q4FY26, driven by losses on sale of scrap following store closures and a warehouse transition.
Quarterly financial performance
The table below presents the key profit and loss metrics for Q1FY27 alongside prior periods. All values are in ₹ lakhs.
| Metric | Q1FY27 | Q4FY26 | Q1FY26 | FY26 | QoQ % | YoY % |
|---|---|---|---|---|---|---|
| Revenue from operations | 2,660 | 2,474 | 2,350 | 9,566 | 8% | 13% |
| Other income | 132 | 453 | 192 | 1,186 | -71% | -31% |
| Total income | 2,793 | 2,928 | 2,542 | 10,752 | -5% | 10% |
| Gross profit | 1,150 | 1,131 | 781 | 4,039 | 2% | 47% |
| Gross margin % | 43.2% | 45.7% | 33.2% | 42.2% | -250 bps | 1000 bps |
| Employee benefits expenses | 557 | 464 | 521 | 1,916 | 20% | 7% |
| Other expenses | 794 | 1,536 | 1,046 | 5,228 | -48% | -24% |
| EBITDA | -69 | -416 | -595 | -1,920 | -84%* | -88%* |
| EBITDA % | -3% | -17% | -24% | -20% | 1400 bps | 2100 bps |
| Depreciation and amortisation | 476 | 431 | 562 | 2,064 | 10% | -15% |
| EBIT | -545 | -847 | -1,157 | -3,984 | -36%* | -53%* |
| Finance cost | 562 | 583 | 490 | 2,118 | -4% | 15% |
| PBT before exceptional items | -1,106 | -1,430 | -1,647 | -6,102 | -23%* | -33%* |
| Exceptional items | — | -10,100 | — | -560 | ||
| PAT after exceptional items | -1,106 | -11,530 | -1,647 | -6,662 | -90%* | -33%* |
*For loss-making lines, a negative QoQ% or YoY% denotes a narrowing loss, not a decline.
EBITDA loss narrowed to ₹69 lakhs in Q1FY27 from ₹595 lakhs in Q1FY26, an 88% improvement YoY, with the EBITDA margin improving by 2100 bps YoY to -3%. Employee benefit expenses rose 20% QoQ to ₹557 lakhs, attributed to capability additions. Other expenses fell 48% QoQ to ₹794 lakhs. The loss before tax (before exceptional items) narrowed 33% YoY to ₹1,106 lakhs, while PAT after exceptional items improved 90% QoQ to a loss of ₹1,106 lakhs, compared to ₹11,530 lakhs in Q4FY26, which included exceptional items of ₹10,100 lakhs.
Store performance and retail metrics
Retail like-for-like (LFL) growth was a key highlight for the quarter, with strong improvement across stores and categories.
| Metric | QoQ | YoY |
|---|---|---|
| Retail LFL growth | +9.6% | +33.3% |
| Revenue per sq ft per month growth | +17% | +42.3% |
| Furniture LFL growth | +30% | |
| Homeware LFL growth | +59% | |
| Store EBITDA improvement | 13/13 stores | |
| Furniture turnaround time reduction | 6 days |
All 13 of 13 stores recorded EBITDA improvement in Q1FY27 versus Q1FY26. Furniture and homeware were the primary growth drivers, with homeware LFL up 59% YoY. The contribution to retail sales in Q1FY27 was led by furniture at 68%, followed by homeware at 28% and modular solutions at 4%. The company noted that increased homeware share adds purchase frequency and supports the proposition of completing a full home.
Strategic pillars and leadership
Praxis Home Retail is repositioning HomeTown from an affordable retailer to a solutions-led home provider across furniture, homeware, and modular solutions. The five strategic pillars guiding this repositioning are:
- Solutions-led stores: consultative selling through design help and whole-room solutions
- Complete the home: expanded range including modular kitchens, wardrobes, and white-space categories through own label or brand partnerships
- Customers for life: loyalty, service, delivery, and installation to drive repeat purchases
- Deepen footprint: denser store clusters, capital-efficient formats, and a connected online-offline journey
- Lean, self-funding engine: tighter supply chain, inventory, and cost management
A full functional leadership team is in place, with equity participation through an ESOP tied to the turnaround. The leadership bench spans retail operations, finance, category management, e-commerce, supply chain, technology, and marketing.
Historical Stock Returns for Praxis Home Retail
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.97% | +5.20% | -18.35% | -29.37% | -63.88% | -82.96% |
How will the 20% QoQ rise in employee benefit expenses impact the timeline for achieving full-year EBITDA breakeven?
Can the company sustain the 43.2% gross margin as it scales modular solutions, which typically carry different cost structures than traditional furniture?
What specific capital allocation strategies are planned to fund the 'deepen footprint' pillar without increasing leverage given the current negative EBIT?
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