Driven by strong demand trends, Style Baazar Ltd. is likely to sustain 25% revenue growth till fiscal 2026, according to the company's Managing Director Shreyans Surana. The company operates fashion retail stores in West Bengal and Odisha, particularly in tier-2 and 3 cities.
“For the entire financial year (FY25), our guidance would be to grow at 25% in terms of revenue. The intent would be to grow at this rate for the next financial year (FY26) too,” Surana told NDTV Profit.
Talking about the Q2 performance, Surana highlighted that Style Baazar Ltd. witnessed strong growth during the period.
“In Q2, we have grown by 65%...Rs 311-crore revenue last quarter, and last year we had done Rs 188 crore. There is a lot of traction coming from the unorganised market to the organised market where we are present,” he said.
The top executive noted that Style Baazar grew 65% year-on-year in the second quarter, compared to 21% YoY growth in the previous quarter.
According to him, their attractive pricing has been encouraging people to move away from unorganised markets.
Surana said the company was confident of widening its Ebitda margin despite expenditure on an expansion drive. He said this was due to the fact that Style Baazar used a cluster-based approach for expansion, a space in which it has experience.
“That gives us an advantage. We have 72 stores in Bengal, and if I open any more stores there, I will know our customers, and what is going to be sold. This helps me set an assortment, which maintains our sales and Ebitda,” he added.
Surana noted the cluster-based business model of Style Baazar enabled it to optimise expenditure, while ensuring deeper market penetration.
“Opening a store in a particular zone helps us optimise costs on all fronts. As we grow further, we will be able to improve margins,” Surana said.
The company has already opened 25 stores in the current financial year and plans to increase the number to 40.
Shares of Baazar Style Retail Ltd. gained 1.94% to touch an intraday high of Rs 369.70 apiece on the NSE on Tuesday. At 12:45 pm, the stock was trading 0.88% lower at Rs 359.45 apiece, as compared to the benchmark Nifty 50's gain of 0.50%.
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