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Earnings Call Transcript

Cantabil Retail India Earnings Call Transcript: Key Takeaways

Cantabil delivered steady 13% revenue growth in Q1 FY27, maintaining industry-leading EBITDA margins. However, volume growth lags store expansion, and management is aggressively recovering a questionable 25Cr real estate loan.

Guidance and delivery
Management target Revenue 20.0% FY27
Highlights
Revenue growth13% YoY growth to 178.8Cr; steady but volume-lagging expansion.
MarginsEBITDA margins improved to 33.2% through cost management and scale.
Demand visibilityModerate July; high expectations for festive Q3 due to late Diwali.
Management confidenceBalanced, though defensive regarding the 25Cr real estate loan recovery.

Growth

Revenue grew 13% YoY; EBITDA margins improved to 33.2%. SSG remains modest at 4.04%.

Outlook

Targeting 1,000Cr revenue for FY27. Guided for 20% annual growth and 5% SSG.

Risks

Substantial real estate loan diversion flagged by analysts; volume growth significantly trailing retail area expansion.

Last quarter's promises, checked

Delivered

  • Guided 60% gross margin → delivered 60.4% (= BEAT)
  • Guided 5-6% SSG → delivered 5% (= BEAT)
  • Guided 30% EBITDA margin → delivered 31% (= BEAT)

Partly delivered

  • Guided 90-100 gross store additions → delivered 91 gross/53 net (= PARTIAL)
  • Guided 40% footwear growth → delivered 40% growth but only 2% of total sales (= PARTIAL)

Missed

  • Guided 675 stores by FY26 → delivered 652 stores (= MISS)
  • Guided 15-20% area expansion → delivered 13% (= MISS)
  • Guided 18% revenue growth → delivered 13% in Q1 FY27 (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: CANTABIL. Summary written with AI assistance from the document.

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Cantabil Retail India Ltd: key numbers

Share price
₹236.75
Market cap
₹1,980 Cr
Revenue (annual)
₹852.5 Cr
Net profit (annual)
₹95.75 Cr
P/E (TTM)
20.3×Sector 55.7×
Promoter holding
74.46%+0.00% QoQ
FII holding
2.16%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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