Cantabil Retail India Ltd. is projecting a volume growth of approximately 15 per cent for FY ’25, as per Shivendra Nigam, the company’s Chief Financial Officer (CFO).
In a press release, Nigam shared a positive outlook for the coming quarters, emphasising a focus on sustaining the volume growth momentum seen in Q1. “We anticipate slight growth in Q2, but we expect Q3 and Q4 to be particularly strong, with targets set for 5 per cent same-store sales growth and an overall volume increase of 15–18 per cent,” Nigam stated.
For Q1, Cantabil Retail reported a 14 per cent year-on-year increase in revenue, rising to Rs. 128 crore from Rs. 112 crore the previous year. The company’s EBITDA also grew by 14 per cent, reaching Rs. 39.4 crore from Rs. 34.4 crore in the same period last year, while the EBITDA margin held steady at 30.8 per cent. However, net profit fell by 7 per cent, from Rs. 12.3 crore in Q1 FY ’24 to Rs. 11.4 crore this quarter.
Regarding gross margins, Nigam noted, “Our gross margin improved from 65 per cent last year to 66 per cent in Q1 this year, and we are maintaining an annual margin of 55–56 per cent. Gross margin remains a crucial focus for us.”
Cantabil Retail is also diversifying its product offerings, especially in women’s wear and accessories. “Previous year, menswear contributed 83 per cent of our revenue, while women’s wear increased from 9 per cent to 10 per cent, and accessories grew from 4 per cent to 5 per cent. With more than 40 exclusive stores for women’s and kids’ wear now operational, we aim to raise women’s wear to 14–15 per cent of our total product mix in the forthcoming years,” Nigam added.
The company’s expansion strategy is centered on strengthening its presence in Central India while keeping its stronghold in Northern and Western India. “We are not currently planning to expand into South India,” Nigam concluded.
