Brands
Go Fashion Q1 profit falls 26 per cent despite steady revenue
Revenue holds at Rs 223 crore as store consolidation weighs on earnings
MUMBAI: Go Fashion may have kept sales in style, but profits found themselves out of fashion this quarter. The apparel retailer reported a sharp decline in first-quarter earnings despite maintaining flat revenue, as higher inventory costs and a one-time store consolidation charge weighed on profitability.
For the quarter ended 30 June 2026, revenue from operations stood at Rs 222.84 crore, virtually unchanged from Rs 222.83 crore in the corresponding quarter last year.
Including other income of Rs 8.41 crore, total income edged up to Rs 231.24 crore, compared with Rs 228.05 crore a year earlier.
Profit before tax fell 25.8 per cent to Rs 22.03 crore, down from Rs 29.69 crore in the first quarter of FY26.
After a tax expense of Rs 5.55 crore, profit after tax declined 25.9 per cent to Rs 16.49 crore, compared with Rs 22.26 crore in the year-ago quarter.
The company reported total comprehensive income of Rs 16.47 crore, down from Rs 22.25 crore in the corresponding quarter last year.
Operating costs increased during the quarter, with total expenses rising 5.5 per cent to Rs 209.21 crore from Rs 198.36 crore a year earlier.
The increase was driven by changes in inventory, with changes in inventories of finished goods, work-in-progress and stock-in-trade rising to Rs 22.61 crore, compared with a gain of Rs 10.52 crore in the corresponding quarter last year.
Employee benefit expenses remained largely stable at Rs 44.72 crore, while subcontracting charges stood at Rs 8.70 crore. Depreciation and amortisation expenses increased to Rs 34.62 crore from Rs 32.27 crore, while finance costs rose to Rs 12.70 crore.
The company also disclosed that other expenses included a one-time write-off of property, plant and equipment worth Rs 6.46 crore, following management’s decision to consolidate store operations during the quarter. This pushed other expenses to Rs 34.45 crore, up from Rs 27.40 crore a year earlier.
Reflecting the weaker earnings performance, basic and diluted earnings per share fell to Rs 3.14, compared with Rs 4.12 in the year-ago quarter.
Compared with the previous quarter ended March 2026, revenue improved from Rs 196.12 crore, while net profit recovered from Rs 7.95 crore, indicating sequential improvement despite the year-on-year decline.
The results suggest Go Fashion is navigating a transition phase. While demand remained resilient enough to keep revenue broadly unchanged, higher operating costs and the impact of store consolidation compressed margins. The clean-up may weigh on near-term profitability, but it could also leave the retailer with a leaner store network as it pursues its next phase of growth.
