Baazar Style

Baazar Style secured a strategic investment of ₹331.53 crores from Cupid Limited through a preferential issue of equity warrants. This funding will enable the company to accelerate its store expansion plan from 40-50 to 60-80 stores annually, targeting 500+ stores within the next three years. A significant portion of the proceeds, ₹182 crores, will be utilized for debt repayment, strengthening the balance sheet and reducing interest expenses. Additionally, ₹7-10 crores are earmarked for digital transformation and ₹20-25 crores for warehouse infrastructure.

The company delivered strong financial results for the 9-month period ending December 31, 2025. Revenue from operations grew 38% year-on-year to ₹1,376 crores. Gross profit increased 40% YoY to ₹475 crores, with the gross margin expanding by 65 basis points to 34.5%. EBITDA saw a 45% YoY increase, reaching ₹217 crores, and the EBITDA margin improved by 76 basis points to 15.8%, reflecting enhanced operational efficiency and cost management.

Baazar Style expanded its store network to 252 stores in 9-month FY26, representing a 27% year-on-year growth from 199 stores. This expansion contributed to a 31% YoY increase in total retail footprint, reaching 2.35 million square feet. The company plans to add approximately 11 new stores in Q4 FY26, maintaining its aggressive growth trajectory. The strategy focuses on cluster-based expansion, which, despite some cannibalization in mature stores, has led to an overall increase in store EBITDA by 30 bps.

Private label products significantly contributed to the company's growth, increasing their share in overall revenue from 44% in 9-month FY25 to 54% in 9-month FY26. This segment generated ₹740 crores in revenue, marking an impressive 68% YoY growth. The company aims to further scale private label penetration to 65% over the next two years. The strategic partnership with Cupid Limited will also enable diversification into personal care and wellness categories, enhancing product mix and customer frequency, while maintaining 87% focus on apparels.

Same-Store Growth (SSG) was impacted by several factors during 9-month FY26. Rapid new store ramp-up within existing clusters led to an 8% decline in SSG for mature stores. Additionally, heavy rainfall in Bengal and socio-political unrest in Assam and Tripura during peak festivals affected performance. Consequently, the SSG guidance for FY26 has been revised downwards from an initial 8% to 4-5%. However, SSG in other states remained resilient at 8%.

Baazar Style is investing ₹7-10 crores in FY26 to build an integrated and intelligent technology backbone, including SAP ERP, Infor WMS, and Domo Analytics, to enhance supply chain visibility and optimize inventory. The company is also developing a hub-and-spoke model with regional distribution centers and collection centers (e.g., in Assam and Bihar) to improve supply chain efficiency. This initiative aims to reduce delivery times and support faster store ramp-up, contributing to better revenue per square foot.

The company is actively implementing a double height gondola strategy in new and existing stores to enhance customer experience and sales. Approximately 50 stores have already been converted, with a target to convert 80% of existing stores within the next 12-14 months. This approach allows for displaying more articles, boosting impulsive buying, and has shown promising results, with double height gondola stores achieving a sales per square foot of ₹11,000 compared to ₹9,000 for non-gondola stores.