Baazar Style Retail Limited , a prominent value fashion retailer, has reported robust financial results for the second quarter of fiscal year 2026, driven by strong festival season demand and strategic store expansion.

Financial Highlights

• Revenue from operations grew by 71% year-on-year to INR 532.00 crores in Q2 FY26
• EBITDA rose by 184% year-on-year to INR 69.00 crores
• Gross profit increased by 76% year-on-year to INR 162.00 crores
• Gross margin expanded by nearly 90 basis points to 31%

Key Performance Metrics

Operational Highlights

• Total store count reached 250, up 36% year-on-year
• Retail area expanded to 2.3 million square feet, a 38% increase from last year
• Sales per square foot improved to INR 865.00, up 22% year-on-year
• Number of bills processed grew by 69% to 5.63 million
• Quantity sold increased by 63% to 19.5 million units

Strategic Developments

• Revised FY26 revenue growth guidance from 25% to 30%
• On track to meet the target of opening 40-50 new stores in FY26
• Recognized a one-time exceptional gain of INR 55.00 crores from lease term reassessment under IndAS 116
• Continued focus on expanding private label sales, which grew 119% year-on-year and contributed 58% of overall sales

Management Commentary

Shreyans Surana, Managing Director of Baazar Style Retail Limited, commented on the results: "Q2 FY26 marked a milestone period for us with our highest ever quarterly and half-yearly revenue and operating metrics across key parameters along with profit growth. Our wide product portfolio serves the entire family, driving higher footfalls and improved basket sizes."

Surana also highlighted the company's digital transformation initiatives, stating, "We are making significant headway in our digital and warehouse transformation journey with a planned investment of INR 20-25 crores this year towards building an integrated and intelligent technology backbone."

Future Outlook

The company maintains a positive outlook for the upcoming quarters, citing strong winter sales and the ongoing festival season. Management expects the focus on private labels and expansion into new markets to continue driving growth.

Baazar Style Retail has reaffirmed its target of opening 40-50 stores this year and revised its top-line growth guidance for FY26 from 25% to 30%. The company expects pre-IndAS EBITDA margin at 7-8% and pre-IndAS PAT margin at 3-4% for the full year.

As Baazar Style Retail continues its expansion and focuses on operational efficiency, it remains well-positioned to capitalize on the growing demand for value fashion in India's retail market.

Baazar Style Retail , a leading value fashion retailer in Eastern India, has reported a robust 71% year-over-year revenue growth for the second quarter of fiscal year 2026, driven by its strategic expansion into tier-2 and tier-3 markets. The company has also unveiled an aggressive growth strategy, targeting over 400 stores by FY27.

Strong Financial Performance

For Q2 FY26, Baazar Style Retail posted impressive financial results:

The company's EBITDA margin improved significantly, rising from 7.8% in Q2 FY25 to 13.0% in Q2 FY26, indicating enhanced operational efficiency.

Expansion Strategy

Baazar Style Retail's growth strategy focuses on:

1. Market Penetration: The company plans to expand its presence in tier-2 and tier-3 markets, capitalizing on the growing demand for organized retail in these areas.

2. Store Network Expansion: With a target of over 400 stores by FY27, Baazar Style Retail aims to strengthen its position as a leading value fashion retailer in Eastern India.

3. Private Label Development: The company is focusing on enhancing its private label offerings, which contributed to 59% of overall revenue in H1 FY26.

4. Omni-channel Integration: Baazar Style Retail is investing in integrating its online and offline channels to provide a seamless shopping experience for customers.

Operational Highlights

• The company operated 250 stores as of September 30, 2025, covering 2.3 million square feet of retail space across 9 states and 189 cities.
• Same-store sales growth (SSSG) stood at 10% for H1 FY26.
• Average transaction value increased to ₹958 in H1 FY26.

Future Outlook

Baazar Style Retail's management expressed confidence in the company's growth trajectory, citing investments in supply chain efficiency, inventory analytics, and brand-building initiatives. The focus on private label development and omni-channel integration is expected to drive sustainable growth and improve profitability.

Pradeep Kumar Agarwal, Chairman and Whole Time Director, stated, "Our strong performance in Q2 and the first half of FY26 reflects the success of our expansion strategy and the growing demand for our value fashion offerings. We are excited about our future growth prospects as we continue to expand our store network and enhance our product portfolio."

IPO Proceeds Utilization

Baazar Style Retail Limited has submitted a monitoring agency report detailing the complete utilization of ₹185 crore raised through its IPO and pre-IPO placement. The funds were allocated as follows:

• ₹146.00 crore for prepayment of outstanding borrowings
• ₹28.99 crore for general corporate purposes
• ₹9.43 crore for offer expenses

CARE Ratings Limited, acting as the monitoring agency, reported no deviations from the stated objectives for the quarter ended September 30, 2025. The report indicates that debt repayment was completed in Q2 FY25 and general corporate purposes were fulfilled by Q4 FY25. A small balance of ₹0.51 crore remains, pertaining to the company's share of offer expenses.

This efficient utilization of IPO proceeds aligns with Baazar Style Retail's commitment to strategic growth and financial prudence, further supporting its ambitious expansion plans.