ICICI Securities's research report on Go Fashion India
Go Fashion reported a broadly stable performance for Q2FY26 with an improved channel mix, supported by stronger LFS traction (26.8% vs. 23.5% YoY) and steady EBO momentum. SSSG remained soft (-3.6% YoY), though trends improved towards quarter-end with better festive build-up and early response to refreshed assortments. Margins moderated on higher staff costs, but overall profitability remained resilient (EBITDA +5% YoY; PAT +6% YoY) aided by disciplined full-price sell-through (95%) and tight cost control. Inventory days stayed stable at 99, and balance sheet remains strong with INR 2,590mn in cash, supporting calibrated expansion. With premium categories scaling well and portfolio refreshes lined up for H2FY26, the company is well placed to sustain steady growth and margin stability. BUY.
Outlook
We cut EBITDA by 3%/5% for FY26/27E, factoring in the revised store addition run rate; we model revenue / EBITDA / PAT CAGR of 11% / 12% / 13% over FY25-28E and introduce FY28E. Maintain BUY with DCF-based revised target price of INR 850 (previously INR 1,000).
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