Value fashion retailer Baazar Style Retail Limited reported robust financial and operational growth for FY ’26, driven by rising demand for affordable fashion, rapid store expansion, and increasing contribution from private labels.
Revenue from operations for the financial year rose 37% year-on-year to Rs. 1,840.9 crore (US $190 million), while EBITDA increased 40% to Rs. 264.1 crore (US $27.29 million). Profit after tax surged 220% year-on-year to Rs. 46.9 crore (US $4.84 million), despite the inclusion of an exceptional loss of Rs. 20.6 crore (US $2.12 million) related to the settlement of an insurance claim.
The company continued to strengthen its retail footprint during the year, expanding its store network to 263 outlets from 214 in FY ’25. Total retail area increased 28% year-on-year to 2.46 million square feet.
Private labels emerged as a major growth driver for the retailer during FY ’26. Revenue from private label products grew 62% year-on-year to Rs. 977 crore (US $ million), with their contribution to total revenue rising to 53% from 45% in the previous fiscal year.
The company also recorded strong growth in its focus markets, where revenues increased 57% year-on-year to Rs. 324.8 crore (US $33.56 million).
Management stated that the company’s value proposition of offering “style for the entire day at Rs. 1,000” continued to resonate strongly with price-conscious consumers across Tier-2 and Tier-3 cities, while also gaining traction among younger consumers in Tier-1 markets.
FY ’26 also marked a strategic development for the retailer following an investment commitment of Rs. 331.53 crore (US $34.25 million) from Cupid Limited through a preferential issue of equity warrants. The investment is expected to support future store expansion, strengthen the balance sheet, and aid diversification into the personal care and wellness segment.
To support long-term scalable growth, the company is investing in digital and supply chain transformation initiatives, including the implementation of SAP ERP systems, advanced warehouse management platforms, and analytics tools aimed at improving operational efficiency and customer responsiveness.
Looking ahead, the company said it remains optimistic about opportunities in India’s underpenetrated value retail market. Supported by continued expansion, strengthening brand equity, and improving consumer demand, the retailer is targeting 25% revenue growth and same-store sales growth of 7%-8% in FY ’27. The company also plans to expand its network to 450-500 stores over the next three years.
