GoFashion Reports 7% Revenue Growth, Revises Store Expansion Plans Amid Market Challenges

Go Colors , a prominent player in the women's bottom wear market, has reported a 7% year-on-year revenue growth to INR 224.00 crores for Q2 FY26. The company's financial performance shows resilience in a challenging market environment, with EBITDA growing by 5% to INR 67.00 crores and PAT increasing by 6% to INR 22.00 crores.

Financial Highlights

Metric	Q2 FY26	YoY Growth
Revenue	INR 224.00 crores	7%
EBITDA	INR 67.00 crores	5%
PAT	INR 22.00 crores	6%

Store Expansion Strategy

In response to market conditions and muted same-store sales growth, GoFashion has revised its annual store expansion guidance. The company now plans to open 80-90 stores in FY26, down from the initial target of 120 stores. This measured approach reflects the company's focus on profitability and quality over rapid expansion.

Business Performance and Strategy

GoFashion added 36 new stores on a net basis in the first half of FY26, bringing its total store count to 812. The company is adopting a selective approach to expansion, prioritizing high-potential locations aligned with evolving demand trends.

Gautam Saraogi, CEO of GoFashion, stated, "We are seeing signs of recovery, which have extended well into the festive season. The response during the festive season has been positive across key markets, reflecting an improvement in consumer sentiment and strong traction across our core categories."

Product Development and Innovation

The company is strengthening its design and product development capabilities to drive growth. GoFashion has structured its design function to treat bottom wear and top wear as distinct segments, each supported by dedicated design teams. This approach aims to drive greater innovation, variety, and consumer relevance within each category.

Future Outlook

GoFashion remains focused on achieving low single-digit same-store sales growth and improving store-level productivity. The company is also maintaining a strong check on inventory levels to ensure a healthy balance sheet and improve overall return on capital employed (ROCE) and efficiency.

While facing challenges in the short term, GoFashion continues to position itself as a one-stop destination for women's bottom wear, catering to diverse age groups and style preferences. The company's strategy of introducing fresh collections and colors, supported by targeted marketing efforts, is expected to drive footfalls and sales in the coming quarters.

As the market shows signs of recovery and consumer sentiment improves, GoFashion appears well-positioned to capitalize on the growing demand for women's bottom wear in India.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.70%	-13.61%	-19.93%	-38.47%	-50.44%	-56.88%

Go Colors , a prominent player in the Indian fashion retail sector, has released its financial results for the second quarter, showcasing growth in key financial metrics.

Financial Performance Highlights

Metric	Q2 (Current Year)	Q2 (Previous Year)	Year-over-Year Change
Revenue	₹2.20 billion	₹2.15 billion	↑2.33%
Net Profit	₹218.00 million	₹206.00 million	↑5.83%
EBITDA	₹666.00 million	₹636.00 million	↑4.72%
EBITDA Margin	29.70%	30.50%	↓0.80 percentage points

GO Fashion has reported a year-over-year increase in its Q2 revenue, rising to ₹2.20 billion from ₹2.15 billion in the same quarter of the previous year. This represents a growth of 2.33% in top-line performance.

The company's bottom line also showed improvement, with net profit climbing to ₹218.00 million, up from ₹206.00 million in the corresponding quarter last year, marking an increase of 5.83%.

EBITDA Performance

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter stood at ₹666.00 million, compared to ₹636.00 million in the same period last year, indicating a rise of 4.72%. However, the EBITDA margin experienced a slight decline, moving from 30.50% in the previous year's Q2 to 29.70% in the current quarter.

The marginal decrease in EBITDA margin, despite growth in absolute EBITDA, suggests that while the company has managed to increase its operational earnings, it may have faced some pressure on operational efficiency or cost management during the quarter.

GO Fashion's Q2 results demonstrate the company's ability to grow its revenue and profitability in the fashion retail market. The increase in net profit, outpacing revenue growth, indicates improved cost management or higher-margin sales. However, the slight dip in EBITDA margin may warrant attention in future quarters to ensure sustained operational efficiency.